How FG Takes Over Keystone Bank Following Court-Ordered Forfeiture
The Federal Government has formally taken ownership of Keystone Bank Limited following a ruling by the Lagos State Special Offences Court, Ikeja, which ordered the forfeiture of 6.3 billion units of the bank’s ordinary shares to the government.
Justice Ramon Oshodi issued the order on Tuesday after Sigma Golf Nigeria Limited, represented by its Chairman, Umaru Modibbo, pleaded guilty to fraudulently converting N20 billion belonging to the Asset Management Corporation of Nigeria (AMCON). The company, which was arraigned alongside former AMCON Managing Director Ahmed Kuru, had entered a plea bargain agreement with the Economic and Financial Crimes Commission (EFCC).
Kuru, however, pleaded not guilty to the charges.
Keystone Bank was among the four banks whose boards and management President Bola Tinubu’s Special Investigator, Jim Obazee, recommended for dissolution. On January 10, 2024, the Central Bank of Nigeria (CBN) took over the bank following allegations that its acquisition was fraudulently facilitated by former AMCON boss Ahmed Kuru.
The EFCC, under the leadership of Chairman Olanipekun Olukoyede, had filed a six-count amended charge against the defendants, accusing them of diverting AMCON funds through Heritage Bank to benefit Sigma Golf Nigeria Limited, enabling the acquisition of Keystone Bank. Ifie Sekibo, a former Managing Director of the defunct Heritage Bank, was also named in the case but remains at large.
The prosecution further alleged that the defendants transferred another N20 billion derived from theft, intending to conceal its source—an offense punishable under Section 332 of the Lagos State Criminal Law of 2011.
During Tuesday’s proceedings, EFCC counsel Rotimi Oyedepo (SAN) informed the court that the commission had reached a plea bargain agreement with Sigma Golf Nigeria Limited. The terms required the company to plead guilty to all six charges and be wound up.
As part of the agreement, the court ordered the forfeiture of all rights, titles, and interests in 6,250,000,000 units of Keystone Bank’s ordinary shares to the Federal Government, as well as the forfeiture of one unit of shares allocated to Umaru Modibbo. The agreement also stipulated that the EFCC would not pursue further criminal charges against Modibbo.
Confirming the voluntary nature of the agreement, Sigma Golf Nigeria Limited and its legal representative, David Idemu, did not contest the forfeiture. Kuru’s lawyer, Olasupo Shasore, did not oppose the deal.
Justice Oshodi consequently convicted Sigma Golf Nigeria Limited and adopted the plea bargain terms. He granted Kuru bail in the sum of N50 million with two sureties, who must provide proof of tax payments for the past three years and swear to an affidavit of means. The judge also directed the EFCC to notify the Nigerian Immigration Service about the seizure of Kuru’s passport. The case was adjourned to March 7 for trial commencement, with Kuru temporarily released to his lawyer pending the perfection of his bail conditions.
Following the court’s ruling, Keystone Bank confirmed in a statement on its official Instagram page that it is now fully owned by the Federal Government. The bank described the development as a significant milestone that would enhance its stability and facilitate its recapitalization.
“With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability,” the statement read. “Keystone Bank continues to strengthen its balance sheet while delivering exceptional value to its teeming stakeholders.”
Reassuring customers of its financial health, the bank affirmed its commitment to regulatory compliance and operational resilience.
“We assure our customers that the bank remains safe, healthy, strong, and resilient,” the bank added.
With this takeover, the Federal Government now fully controls Keystone Bank’s operations, signaling a new phase for the institution’s future.
