Court Orders Forfeiture Of Keystone Bank To Federal Government

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.

Justice Oshodi issued the order after Sigma Golf Nigeria Limited, represented by its Chairman, Umaru Hamidu Modibbo, pleaded guilty to 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 entered a plea bargain agreement with the Economic and Financial Crimes Commission (EFCC) in the alleged N76bn, $31.5m fraud charge brought against him and other defendants by the EFCC.

Kuru who is the first defendant in the case, has pleaded not guilty to the charges.

In effect, the Federal Government has secured full ownership of Keystone Bank, the bank stated on X.

The EFCC had filed a six-count amended charge against the defendants claiming that 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 a former Managing Director of the defunct Heritage Bank, Ifiesimama Sekibo, (currently at large), of dishonestly converting a total sum of N20 billion of AMCON’s property through Heritage Bank for Sigma Golf Nigeria Limited.

They were also accused of transferring another N20 billion, 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.

EFCC prosecuting counsel, Rotimi Oyedepo (SAN), informed the judge that the commission and Sigma Golf Nigeria Limited had agreed to resolve the matter amicably and by legal principles, justice, and public policy.

Oyedepo stated 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 of Nigeria, represented by the EFCC.

The court would in addition order the forfeiture of one unit of ordinary shares allocated to Alhaji Umaru Hamidu Modibbo, the company’s current chairman.

Oyedepo said: “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, David Idemu, confirmed that the plea bargain agreement was entered into voluntarily and without coercion.

Kuru’s lawyer, Olasupo Shasore (SAN), did not oppose the agreement.
Justice Oshodi consequently convicted Sigma Golf Nigeria Limited and adopted the terms of the plea bargain agreement.

The trial judge also granted Kuru bail in the sum of N50 million with two sureties in line sum.

The sureties were ordered to 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 regarding the seizure of Kuru’s passport by the court registrar.

Justice Rahman temporarily released Kuru to his lawyer until his bail conditions were perfected.

He adjourned to March 7 for the commencement of trial.

A statement by the bank reads: “Keystone Bank Limited wishes to clarify the media report of a judgement 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.

“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 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.

“This judgment implies that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria.”

The bank explained that the development market significant milestone of its journey reinforcing stability and paving the way for a seamless recapitalisation process.

“With this clarity, we are well positioned for sustained growth, stronger partnership, and enhanced profitability. Keystone Bank continues to strengthen its balance sheet while delivering exceptional value to its teaming stakeholders.”