A Federal Capital Territory (FCT) High Court in Abuja has sealed the regional head office of Keystone Bank following serious allegations of the bank withholding customers’ funds and refusing to process legitimate withdrawal requests.
The court order, executed on Thursday, came after a series of complaints by aggrieved customers who accused the financial institution of deliberately blocking access to their deposits without any valid explanation.
Investigations revealed that customers had persistently reported cases of failed transactions and withheld funds, with the bank allegedly ignoring demands for resolution.
One of the affected customers, who spoke under anonymity, disclosed that several attempts to withdraw her money were frustrated by the bank for over six months.
“Each time I visited the bank, they kept making excuses about technical issues or system upgrades, but nothing changed."
"I had to approach my lawyer when it became clear they had no intention of releasing my money,” she said.
Court documents obtained by our correspondent showed that the judge condemned the bank’s conduct, describing it as unlawful and a clear violation of customers’ rights.
The ruling emphasized that no financial institution had the authority to withhold customers’ funds without legal justification or regulatory backing.
Further findings indicated that Keystone Bank has been entangled in legal disputes in recent months.
In May 2025, the Court of Appeal in Abuja dismissed the bank’s appeal against a High Court ruling that ordered the payment of ₦202.8 million to a depositor in a fixed deposit controversy.
In February, a Lagos court had also directed the forfeiture of Keystone Bank’s shares to the Federal Government, making it a fully state-owned entity.
Despite assurances from the Central Bank of Nigeria about the bank’s operational stability, incidents of customer fund withholding have continued to surface.
Efforts to obtain an official reaction from Keystone Bank proved abortive as calls and messages sent to the bank’s spokesperson remained unanswered at the time of filing this report.
Meanwhile, the Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation are reportedly monitoring the situation closely, with sources hinting at possible regulatory sanctions if the bank is found guilty of breaching financial service regulations.
Financial experts warn that incidents like this could erode public trust in the banking sector if left unchecked.
A financial analyst, Mr. Adewale Ogundipe, while reacting to the development, urged regulators to intervene decisively to protect depositors and uphold confidence in the industry.
“If one bank gets away with such practices, it sets a dangerous precedent. The regulators must act fast,” he said.
As of the time this report was filed, it remained unclear how long the Abuja regional office would remain sealed or whether other Keystone Bank branches across the country would face similar actions.
Customers affected by the current development are anxiously awaiting official communication on how their funds will be retrieved.
