Keystone Bank Limited on Tuesday announced that it is now fully owned by the Federal Government of Nigeria, following the court’s dissolution of its former shareholder, Sigma Golf Nigeria Limited.
This was disclosed in the bank’s statement after the judgement by the Lagos State Special Offences Court, sitting in Ikeja, Lagos, on Tuesday, February 11, 2025, against Sigma, in a matter instituted by the Economic and Financial Crimes Commission (EFCC).
Nairametrics earlier reported that the court convicted and ordered the winding up (dissolution) of Sigma Golf Nigeria Limited in an alleged N20 billion fraudulent diversion case.
Justice Rahman Oshodi delivered the judgment in the case instituted by the EFCC against a former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and the company (as a co-defendant).
The EFCC had arraigned Sigma Golf Nigeria Ltd and the former AMCON boss on a six-count amended charge bordering on alleged conspiracy and stealing.
The EFCC accused the defendants of converting AMCON’s N20 billion funds through Heritage Bank to Sigma Golf Nigeria Ltd for the acquisition of shares in Keystone Bank.
What Transpired in Court
- Following the arraignment, Kuru pleaded not guilty to the offences, while Sigma Golf’s Chairman, Umaru Modibbo, admitted guilt.
The EFCC counsel, Rotimi Oyedepo (SAN), informed the court that the commission had reached a plea bargain agreement with the company.
A plea bargain agreement is a legal procedure wherein a suspect admits to an offence in exchange for a lighter punishment.
Oyedepo urged the court to adopt the plea bargain agreement as its judgment.
The plea bargain agreement partly reads:
“That upon the conviction of Sigma Golf Nigeria Ltd, all its rights, title, and interest in the one (1) unit of Keystone Bank Limited’s ordinary shares allotted to Alhaji Umaru Hamidu Modibbo, the current Chairman of the company, shall forthwith also be forfeited to the Federal Government of Nigeria, represented by the Economic and Financial Crimes Commission (EFCC).
“That in respect of the facts and circumstances of this case, the Complainant, the Federal Republic of Nigeria, agrees not to pursue criminal charges both now and in the future against Alhaji Umaru Hamidu Modibbo.
“That Sigma Golf Nigeria Limited and its Chairman, Alhaji Umaru Hamidu Modibbo, agree to fully cooperate with the Prosecution in any ongoing or future investigations related to this matter, including providing truthful testimony as required.”
- The court confirmed from the co-defendant’s legal team that the agreement was voluntary, and the response was affirmative.
- The court subsequently convicted and wound up Sigma Golf Nigeria Limited and ordered ‘the forfeiture to the Federal Government of all rights, title, and interest of the company in Six Billion, Two Hundred and Fifty Million (6,250,000,000) units of Keystone Bank Limited’s ordinary shares of N1.00 each.”
The matter was then adjourned to March 7 and April 16 & 17 for the commencement of the trial of the ex-AMCON boss.
Keystone Bank Reacts
Responding to the development, Keystone Bank confirmed the dissolution of Sigma and the forfeiture of its shares to the federal government.
The bank in a statement on Tuesday, February 11, 2025, clarified media report of a judgement by the Lagos State Special Offences Court, sitting in Ikeja, regarding the status of the former shareholders of the bank: Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo.
A statement by the management of the lender said the development follows a series of actions initiated by the Central Bank of Nigeria (CBN) in its bid to further strengthen the institution and the banking sector.
Keystone Bank noted that the development represents a major turning point, strengthening its stability and setting the stage for a smooth recapitalization process.
Keystone bank in its statement said, “Recall that on January 10, 2024, the Central Bank of Nigeria (CBN) announced the dissolution of the previous Board and Management of the Bank for corporate governance breaches. The CBN followed this action with the appointment of a new Board and Management for the Bank.
“Subsequently the Federal Government through the the Economic and Financial Crimes Commission (EFCC),filed a court action at the Lagos State High Court, Ikeja, against the former owners challenging the acquisition of the bank.
“At the sitting of the court today, February 11, 2025, the court ordered the forfeiture of the shares of the Bank previously held by the shareholders in favour of the Federal Government of Nigeria. The implication of this judgment is that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria.
“This development marks a significant milestone in our journey, reinforcing our stability and paving the way for a seamless recapitalization process. With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability,”.
The bank added that it will continue to “strengthen its balance sheet while delivering exceptional value to its teeming stakeholders.
“The bank maintains a strong financial position, consistently fulfilling all its obligations and adhering to all regulatory requirements.
“We assure our customers that the bank remains safe, healthy, strong, and resilient,” It added
