The Lagos State Special Offences Court, Ikeja, has ordered the forfeiture of 6.3 billion shares in Keystone Bank Limited to the Federal Government of Nigeria.
The ruling, delivered by Justice Ramon Oshodi, follows a guilty plea by Sigma Golf Nigeria Limited in a fraudulent N20 billion diversion case.
The company, chaired by Umaru Hamidu Modibbo, was accused, alongside former Asset Management Corporation of Nigeria (AMCON) Managing Director Ahmed Kuru, of illegally acquiring Keystone Bank shares using diverted AMCON funds. While Sigma Golf admitted guilt, Kuru pleaded not guilty and was granted bail of N50 million, with two sureties.
The Economic and Financial Crimes Commission (EFCC) had charged the defendants with conspiracy and money laundering, alleging that they funneled N20 billion through Heritage Bank to facilitate the acquisition of Keystone Bank. A plea bargain agreement between Sigma Golf and the EFCC led to the company’s conviction and dissolution. The court also ordered the forfeiture of the shares to the federal government and ruled that Modibbo would not face further charges.
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Keystone Bank, in a statement, confirmed the federal government’s full ownership following the court ruling. The bank emphasized that the transition strengthens its financial stability and positions it for a smooth recapitalization process.
“This development marks a significant milestone, 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 stated.
The bank reassured customers of its financial health and compliance with regulatory standards, affirming that it remains strong and resilient.
Meanwhile, Kuru’s trial is set to begin on March 7, with additional hearings scheduled for April. The case has drawn attention to Nigeria’s banking sector reforms and the government’s efforts to combat financial mismanagement in state-owned institutions.
