FG assumed the full ownership of Keystone Bank over Sigma Golf’s dissolution by the court.
NewsOnline Nigeria reports that 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).
Recall that the court convicted and ordered the winding up (dissolution) of Sigma Golf Nigeria Limited in an alleged N20 billion fraudulent diversion case.
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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 also confirmed that Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo were the former shareholders of the bank.
The bank claimed that the dissolution development arose on January 10, 2024, when 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,” the bank stated.
The bank stated that the “implication of this Judgment is that Keystone is now fully owned by the Federal Government of Nigeria.”
The bank expressed hope that the federal government’s takeover will reinforce its stability and pave the way for a seamless recapitalization process.
Backstory
- In January 2024, the Central Bank of Nigeria (CBN) dissolved the Board and Management of three major banks — Union Bank, Keystone Bank, and Polaris Bank.
- According to a press release dated January 10, 2024, this decision was driven by the bank’s failure to comply with key regulatory requirements.
- The relevant provisions—Section 12©, (f), (g), (h) of the Banks and Other Financial Institutions Act, 2020—outline important regulatory and governance standards.
- The CBN highlighted multiple issues leading to this action, including non-compliance with regulations, corporate governance lapses, and activities that posed a risk to financial stability.
