A High Court in Abuja has shut down Keystone Bank’s regional office after customers complained that the bank refused to release their money. The complaints said the bank blocked access to funds and would not allow people to make withdrawals, even when the requests were legitimate.
Several customers said they had reached out to the bank many times but received no help. They said their money remained stuck, and the bank gave no good reason. One woman shared that she tried for six months to get her money, but every time she went to the bank, she was told about system upgrades or technical problems. In the end, she had to get a lawyer to step in.
According to court documents, the judge said the bank’s actions were wrong and illegal. The judge explained that no bank has the right to keep a customer’s money without a lawful reason or regulatory approval.
This is not the first legal trouble for Keystone Bank. In May 2025, the Court of Appeal dismissed an appeal by the bank and ordered it to pay ₦202.8 million to a customer over a fixed deposit case. Earlier, in February, another court in Lagos had also ruled that the bank’s shares should be taken over by the federal government, which made it fully government-owned.
Even though the Central Bank of Nigeria says the bank is stable, more customers have continued to complain about being unable to access their funds. Journalists tried to get the bank’s side of the story, but no one from Keystone Bank responded to calls or messages.
Meanwhile, the Central Bank and the Nigeria Deposit Insurance Corporation are watching the case closely. If they find that the bank has broken financial rules, it may face serious penalties.
Financial experts are warning that this kind of issue could damage public trust in the banking system. A financial analyst, Mr. Adewale Ogundipe, said that regulators must act fast to stop other banks from doing the same.
Right now, it’s not clear how long the Abuja office will stay shut. Many customers are still waiting to hear how they will be able to recover their money.
