FG takes control of Keystone Bank following forfeiture order

Lagos State Special Offences Court Orders Forfeiture of 6.3 Billion Keystone Bank Shares to Federal Government

In a significant legal ruling, the Lagos State Special Offences Court in Ikeja has ordered the forfeiture of 6.3 billion units of ordinary shares of Keystone Bank Limited, valued at N1.00 each, to the Federal Government of Nigeria.

The ruling was delivered by Justice Rahman Oshodi following a guilty plea by Sigma Golf Nigeria Limited, represented by its Chairman, Umaru Hamidu Modibbo, for the fraudulent conversion of N20 billion belonging to the Asset Management Corporation of Nigeria (AMCON).

Sigma Golf Nigeria Limited was arraigned alongside a former Managing Director of AMCON, Ahmed Kuru, who is facing a multi-billion naira fraud charge filed by the Economic and Financial Crimes Commission (EFCC).

While Kuru pleaded not guilty, Sigma Golf Nigeria Limited entered a plea bargain agreement, leading to the court’s order for the forfeiture of Keystone Bank shares.

According to EFCC prosecuting counsel Rotimi Oyedepo (SAN), the agreement was reached to ensure justice while facilitating legal and economic stability. Under the terms of the agreement, Sigma Golf Nigeria Limited agreed to be wound up, relinquishing all rights to the 6.3 billion shares in Keystone Bank.

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The EFCC had filed an amended six-count charge against the defendants, accusing them of diverting AMCON funds through Heritage Bank for Sigma Golf Nigeria Limited’s acquisition of Keystone Bank.

 Former Managing Director of Heritage Bank, Ifiesimama Sekibo, currently at large, was also implicated in the scheme.

In addition to ordering the forfeiture of shares, Justice Oshodi convicted Sigma Golf Nigeria Limited and adopted the plea bargain terms.

The court also granted Ahmed Kuru bail in the sum of N50 million with two sureties, who must provide tax payment evidence for the past three years. The EFCC was directed to notify the Nigerian Immigration Service regarding the seizure of Kuru’s passport.

Following the court’s decision, Keystone Bank issued a statement clarifying the implications of the ruling.

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The bank highlighted that the Central Bank of Nigeria (CBN) had dissolved its previous Board and Management on January 10, 2024, due to corporate governance breaches.

The bank stated: “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. This judgment implies that Keystone Bank Limited is now fully owned by the Federal Government.”

The ruling marks a critical milestone in the bank’s corporate trajectory, providing clarity for a seamless recapitalisation process.

Keystone Bank assured stakeholders of continued financial stability and strategic growth, emphasizing its commitment to strengthening its balance sheet and enhancing profitability.

The case was adjourned to March 7, 2025, for the continuation of trial proceedings against Ahmed Kuru and other defendants still facing criminal charges.