Keystone Bank Speaks on FG Takeover as Sources Hint at Rebranding With New Name
- Keystone Bank Limited has clarified the reports of its takeover by the Nigerian government through a court order
- The bank confirmed the court order, stating that it is now wholly owned by the Nigerian government
- The court order also authorised asset forfeiture and clarified the status of the former owners, Sigman Golf Limited and Umaru Modibo
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Keystone Bank Limited has clarified reports of a judgment by the Lagos State Special Offences Court in Ikeja, on Tuesday, February 11, 2025, which handed over the bank to the Nigerian government.
The court order also concerns the status of the former shareholders of the bank, Sigma Golf Nigeria Limited and Umaru H. Modibo.
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Keystone Bank confirms FG ownership
According to a statement by the bank’s management, the development comes after several actions by the Central Bank of Nigeria (CBN) to strengthen the banking sector.
Keystone Bank disclosed that the development is a major turning point, boosting its stability and restarting a new recapitalisation process.
The bank said that on January 10m 2024, the apex bank announced the dissolution of the bank’s Board and Management for breach of corporate governance.
CBN followed the board dissolution by appointing a new management for the bank.
The Nigerian government subsequently filed a court order through the Economic and Financial Crimes Commission (EFCC), challenging the bank’s acquisition.
Keystone Bank reassures customers
The bank stated that the court ordered the lender’s takeover by the Nigerian government followed by asset forfeiture.
It said that the order implies that Keystone Bank Limited is fully owned by the Nigerian government.
Daily Trust disclosed that Keystone Bank said the development is a significant milestone in its journey to reinforce its stability and pave the way for a hitch-free recapitalisation process.
The new clarity now positions the Keystone Bank for growth, stronger partnerships, and better profitability, adding that it will continue to strengthen its balance sheet, the statement read.
“We assure our customers that the bank remains safe, healthy, strong, and resilient,” the statement said.
Meanwhile, sources have said that the bank may opt for rebranding and a new corporate identity to survive.
The bank may change its corporate image
They disclosed that the takeover by the government sent panic to the bank’s customers, who rushed to withdraw or close their accounts.
According to them, other stakeholders also became jittery concerning the lender’s fate.
“The bank is exploring the option of rebranding. I mean a new name and a new corporate identity to give it a new flare. The current identity sends off negative vibes to customers and stakeholders,” one of the sources said.
There have been speculations that the bank was distressed alongside others, leading to the CBN issuing a rebuttal, affirming the bank’s health status.
NDIC lists 20 failed banks
Legit.ng earlier reported that Depositors, creditors, and shareholders of 20 failed banks in Nigeria will get an additional N16.18 billion in liquidation dividends, the Nigeria Deposit Insurance Corporation (NDIC) said.
The latest payment will increase dividends paid to the depositors to N61,63 billion after making cumulative payments of liquidation dividends totalling N45,45 billion as of July 2023, representing amounts exceeding the insured sums to depositors of the 20 banks.
According to NDIC Director of Communications and Public Affairs, Bashir Nuhu, the 20 failed banks were among the banks that had shut down previously due to the revocation of their operating licences by the Central Bank of Nigeria (CBN) between 1994 and 2018.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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