In a landmark ruling on Tuesday, Justice Ramon Oshodi of the Lagos State Special Offences Court, Ikeja, Lagos, ordered the forfeiture of 6.3 billion units of ordinary shares in Keystone Bank Limited, each valued at N1.00, to the Federal Government of Nigeria.
The decision followed Sigma Golf Nigeria Limited, led by Chairman Umaru Hamidu Modibbo, pleading guilty to the fraudulent conversion of N20 billion from the Asset Management Corporation of Nigeria (AMCON).
The company, alongside former AMCON Managing Director, Ahmed Kuru was charged after entering a plea bargain agreement with the Economic and Financial Crimes Commission (EFCC) under the leadership of the EFCC Chairman, Olanipekun Olukoyede.
While Sigma Golf Nigeria Limited accepted the charges, Kuru, the first defendant, pleaded not guilty.
The EFCC, under the direction of Olukoyede had in a six-count amended charge accused the defendants, along with Ifie Sekibo, former MD of defunct Heritage Bank (currently at large), of diverting N20 billion from AMCON funds via Heritage Bank to benefit Sigma Golf Nigeria Limited in acquiring Keystone Bank.
Additionally, they faced allegations of laundering another N20 billion through a theft scheme intended to conceal its origin, violating Section 332(1) of the Criminal Law of Lagos 2011.
During the proceedings on Tuesday, EFCC Counsel Rotimi Oyedepo (SAN) informed the court of the plea agreement reached between the EFCC and Sigma Golf Nigeria Limited.
This included the company’s admission of guilt to all charges and its liquidation by the court.
As part of the agreement, the court ordered the forfeiture of 6.25 billion Keystone Bank shares to the federal government and one share allocated to Alhaji Umaru Hamidu Modibbo, who would not face future criminal charges.
The conviction of Sigma Golf Nigeria Limited was finalised, and the plea bargain was accepted.
Kuru was granted bail in the sum of N50 million, with two sureties required to provide affidavits of means and tax payment evidence.
The court also instructed the EFCC to notify the Nigerian Immigration Service to seize Kuru’s passport.
The case was adjourned to March 7 for the commencement of Kuru’s trial, with the court temporarily releasing him to his lawyer until bail conditions are met.
Meanwhile, Keystone Bank Limited in a statement on Tuesday, clarified the judgement by the Lagos State Special Offences Court.
The management of the bank said the development followed a series of actions initiated by the CBN in its bid to further strengthen the institution and the banking sector.
Keystone Bank noted that the development represented a major turning point, strengthening its stability and setting the stage for a smooth recapitalization process.
According to the bank: “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. 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 would 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,” the statement said.
