The Federal Government has formally taken over Keystone Bank Limited following a Lagos State Special Offences Court ruling on Tuesday, ordering 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) while Kuru, the first defendant in the case, pleaded not guilty to the charges.
Keystone Bank is one of the four banks that President Bola Tinubu’s Special Investigator, Jim Obazee, recommended the dissolution of its board and management and was subsequently taken over by the Central Bank of Nigeria (CBN) on January 10 2024, after the fraudulent takeover of the bank allegedly aided by the former Managing Director of the AMCON.
Later, the apex bank appointed Hassan Imam as the managing director of the lender and Chioma Mang as its Executive Director.
The EFCC, which took over the prosecution of those indicted in Jim Obazee’s panel’s preliminary report filed a six-count amended charge claiming that the AMCON funds were diverted through Heritage Bank for the benefit of Sigma Golf Nigeria Limited to facilitate the acquisition of Keystone Bank.
The anti-graft agency also accused the defendants, along with Ifie Sekibo, a former Managing Director of the defunct Heritage Bank (who is currently at large), of dishonestly converting a total of N20 billion of AMCON’s property through Heritage Bank for Sigma Golf Nigeria Limited.
In addition, they were accused of transferring another N20 billion, derived from theft, with the intent to conceal its source, in violation of Section 332(1) of the Criminal Law of Lagos 2011, which is punishable under Section 332(3) of the same law.
During the proceedings on Tuesday, EFCC counsel, Rotimi Oyedepo (SAN), told the court that the commission and Sigma Golf Nigeria Limited had agreed to amicably resolve the matter and in accordance with legal principles, justice, and public policy.
Oyedepo informed the judge that the terms of the plea bargain agreement included Sigma Golf Nigeria Limited pleading guilty to all six court charges and being wound up by the court.
He further noted that the court would order the forfeiture of all rights, titles, and interests in 6,250,000,000 units of Keystone Bank Limited’s ordinary shares to the Federal Government, represented by the EFCC as well as order the forfeiture of one unit of ordinary shares allocated to Alhaji Umaru Hamidu Modibbo, the company’s current chairman.
Oyedepo further briefed the court that “the complainant agrees not to pursue criminal charges now or in the future against Alhaji Umaru Hamidu Modibbo.”
Both the convict and its legal representative, Barrister David Idemu, confirmed that the plea bargain agreement was entered into voluntarily and without coercion while Kuru’s lawyer, Barrister Olasupo Shasore, did not oppose the agreement.
In light of these developments, Justice Oshodi convicted Sigma Golf Nigeria Limited and adopted the terms of the plea bargain agreement.
During the proceedings, the judge also granted Kuru bail in the sum of N50 million with two sureties, who must swear to an affidavit of means before the court and must also provide evidence of tax payment for the last three years.
The court ordered the EFCC to notify the Nigerian Immigration Service about the seizure of Kuru’s passport by the court registrar.
Before adjourning the case to March 7, for the commencement of the trial, the court temporarily released Kuru to his lawyer until his bail conditions were perfected.
Meanwhile, Keystone Bank has confirmed that it is now fully owned by the Federal Government of Nigeria, stating that the development will enhance its stability and facilitate a smooth recapitalisation process.
The bank in a statement on its official Instagram page on Tuesday evening, following the ruling by the Lagos State High Court, Ikeja, which ordered the forfeiture of shares previously held by the bank’s former shareholders, stated the court ruling effectively transferred ownership of the bank to the Federal Government.
“Keystone Bank Limited wishes to clarify the media report on a judgment by the Lagos State Special Offences Court, sitting in Ikeja, Lagos, on Tuesday, February 11, 2025, regarding the status of the former shareholders of the bank: Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo.
“At the court sitting today, February 11, 2025, the court ordered the forfeiture of the bank’s shares previously held by these shareholders in favour of the Federal Government of Nigeria.
“With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability. Keystone Bank continues to strengthen its balance sheet while delivering exceptional value to its teeming stakeholders.
“We assure our customers that the bank remains safe, healthy, strong, and resilient,” it added
