Keystone Bank: CBN assures depositors of stability

The Central Bank of Nigeria (CBN) has assured depositors and stakeholders that Keystone Bank remains stable and fully operational.

The development comes against the backdrop of a court order mandating the forfeiture of shares previously held by the bank’s shareholders.

In a statement issued by the CBN spokesperson, Hakama Ali,
on Friday, the CBN said the forfeiture order merely reaffirmed its earlier decision to assume control of Keystone Bank’s management in January 2024, following a leadership change.

The central bank emphasised that the bank’s operations remain secure, with full compliance with regulatory standards and a commitment to transparency.

“Following the court order that the shares of Keystone Bank Limited previously held by the shareholders be forfeited to the Federal Government of Nigeria, the Central Bank of Nigeria (CBN) wishes to reassure the public that Keystone Bank Limited remains safe, sound, and fully operational.

“We acknowledge that this development may have triggered customer concerns; however, we wish to underscore that the stability of the banking system and the safety of depositors’ funds remain our top priorities. Keystone Bank’s operations are entirely secure, and there is no reason for concern.

“For clarity, the Court Order merely reaffirmed the Central Bank of Nigeria’s prior decision to take over the management of Keystone Bank Limited in January 2024, following a change in its leadership. Since then, the CBN has closely monitored the bank’s operations to ensure they are in full compliance with regulatory standards, operational transparency, and the interests of depositors,” it said.

The court-ordered forfeiture of Keystone Bank’s shares comes amid broader regulatory interventions aimed at strengthening governance and stabilising Nigeria’s financial sector.

The latest ruling follows a case brought by the Economic and Financial Crimes Commission (EFCC) against Sigma Golf Nigeria Limited, the bank’s former shareholder, and a former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru.

On 11 February, the Lagos State Special Offences Court in Ikeja convicted Sigma Golf Nigeria Limited on charges related to the alleged fraudulent diversion of N20bn.

Justice Rahman Oshodi ordered the winding up of the company, effectively dissolving its ownership of Keystone Bank. Prosecutors accused Sigma Golf and Mr Kuru of conspiring to divert funds from AMCON through Heritage Bank to finance the acquisition of Keystone Bank’s shares.

Following the ruling, Keystone Bank confirmed that its ownership had been fully transferred to the Federal Government of Nigeria.

ALSO READ: Keystone bank gets new chairperson, non-executive directors

The CBN, which has been tightening oversight in the banking industry, reassured customers that the transition would not affect the bank’s stability or day-to-day operations.

The CBN pledged to continue monitoring Keystone Bank’s financial health, vowing to take necessary steps to protect depositors, staff, and other relevant parties.