The apex financial sector regulator, the Central Bank of Nigeria (CBN) on Thursday reassured the investing public about the stability of Keystone Bank Limited amid concerns over court order for the forfeiture to the Federal Government of the shares of the bank previously held by its shareholders.
The Lagos State Special Offences Court in Ikeja on Tuesday ordered the forfeiture of 6.3 billion units of ordinary shares of the bank valued at N1.00 each to the government.
Justice Ramon Oshodi gave the order after Sigma Golf Nigeria Limited, represented by its Chairman, Umaru Modibbo, pleaded guilty to fraudulently converting N20 billion funds belonging to the Asset Management Corporation of Nigeria, (AMCON).
The company, which was arraigned alongside a former Managing Director of AMCON, Ahmed Kuru, entered a plea bargain agreement with the Economic and Financial Crimes Commission, EFCC.
Keystone Bank was one of the four banks the CBN took over its board and management on January 10 2024 after the Special Investigator appointed by President Bola Tinubu, headed by Jim Obazee recommended their dissolution following the fraudulent takeover of the bank allegedly aided by the former Managing Director of AMCON, Ahmed Kuru.
Although the CBN later appointed Hassan Imam as the managing director and Chioma A Mang as the Executive Director, the EFCC has been prosecuting those indicted for allegedly diverting AMCON funds through Heritage Bank for the benefit of Sigma Golf Nigeria Limited to facilitate the acquisition of Keystone Bank.
Since the Court’s order, there have been concerns by shareholders who were worried about their investments.
But reassuring the customers of the bank’s financial health, the CBN said there was no cause for alarm, as Keystone Bank Limited remained 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,” the spokesperson of the CBN, Hakama Sidi-Ali, said on Thursday in a statement in Abuja.
“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,” she added.
She said as part of CBN’s commitment to safeguarding the financial system and building public trust, it would continue to monitor the bank’s performance.
“We (CBN) will take all necessary steps to protect the interests of depositors, staff, and stakeholders. Customers are also encouraged to contact Keystone Bank’s customer support or visit any Keystone Bank branch for inquiries or concerns,” she added.
