A Federal High Court has asked CBN to stop the sale of Keystone Bank

Nairametrics| The Governor of the Central Bank of Nigeria (CBN) and its Governor, Godwin Emefiele, may be treading a fine line with the sale of Keystone Bank to Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited consortium.

Here is why

  • This is as a Federal High Court in Abuja has restrained the Governor of the Central Bank of Nigeria, CBN, Godwin Emefiele, and the management of Keystone Bank from the transfer of the bank’s shares and requested Emefiele to defend why he should not be detained over the failure of the CBN to obey a court order.
  • According to Vanguard, Justice Valentine Achi, who presided over the court, wondered why the CBN went on with the sale of Keystone Bank when another court had ordered that all parties maintain the status quo on one hand and the CBN governor to mediate the dispute and report back to the court on the other. Rather than obey court order, the CBN had gone on with the proposed sale.
  • Thus, the court asked the CBN governor to explain why he should not be committed to prison for contempt of court on account of the supervisory and regulatory power of the CBN regarding the purported sale of Keystone Bank to Sigma Golf Nigeria Limited and River Bank Consortium.
  • Similarly, the new owners may have to wait a while longer before obtaining the shares of the former Keystone Bank as the Court has restrained the CBN from transferring the Keystone Bank’s shares to the new owners.

It will be recalled that one year after Sterling Bank cancelled its proposed purchase of Keystone Bank, the Asset Management Corporation of Nigeria (AMCON) sold Keystone Bank Limited, the last of the three nationalized banks to a consortium of local investors; Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited on March 20, 2017.

The new owners almost immediately commenced the process of transition governance and announced key appointments of  Umaru Modibbo as Chairman of the new Board of Directors and Hafiz Bakare as the acting Managing Director, both of which took effect on April 1, 2017. Before then, the bank has been run by an AMCON-appointed board headed by Mr. Philip Ikeazor as Managing Director and Chief Executive Officer of the bank. This ruling will, however, be a big blow to the investors’ plans.

Chacha Wabara

Chacha Wabara is a legal practitioner, blogger and fitness coach. She has over 5 years experience in blogging and freelance writing. She has written several articles and research work over the years as a freelance contributor. She joins Nairametrics as Our News and Analysis Lead.

What others say about : A Federal High Court has asked CBN to stop the sale of Keystone Bank..


one of the most difficult profession,i have found are law,accountacy and medicine.it but again it have flavour and flair.it does not chande you personally.IT IS A PROFESSION THAN TAMES YOU,AND SUBJECTS YOUR EGO, TO SEE ANOTHER VISION.NOW WHAT IS THE SPIRIT OF LAW ? you need to capture this law.the spirit of law which says 9/10 is poccession and the law is an ass.meaning law is a study of system and rules made to avoid anachy.
if you studted these 3 professions,you cannot be the same again,that is if you studied in your teens.now this judge is subjected to rule and system,this is the several times,the writer said court have said they have threaten to jail the governor of cbn for contempt of the court.
Any trained lawyer first reaction,IS ON WHAT BASIS IS THE JUDGE IS PASSING HIS JUDGEMENTany write-up is bullshit.you have ask on what the governor have done wrong ?,as the the governor is within his power under the law,to sell keystone and to whom the cbn wishes to sell,the next question is who is suing and what is their locus standing.
Now it looks the judge have exceeded his power,in restraining the governor from doing his job.in England judicial only intervenes to interpretes the law or another call it judicial review,even then govt have vast discretion to obeys this judicial review.in the the final sense,once govt invokes this maxim ” it is in public interest ” the case is closed.you cannot forces the hand of the govt to do some thing which may harm the nation

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