FG Now Owns Keystone Bank After Court Dissolves Sigma Golf

Keystone Bank Limited announced on Tuesday that it is now fully owned by the Federal Government of Nigeria, following a court order to dissolve its former shareholder, Sigma Golf Nigeria Limited.

This development 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. The court’s decision was in response to a case brought by the Economic and Financial Crimes Commission (EFCC).

Earlier reports indicated that the court had convicted and ordered the dissolution of Sigma Golf Nigeria Limited in a case involving an alleged N20 billion fraudulent diversion.

Justice Rahman Oshodi delivered the judgment 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 charged Sigma Golf Nigeria Ltd and the former AMCON boss on a six-count amended charge, including conspiracy and stealing. They were accused of converting AMCON’s N20 billion funds through Heritage Bank to Sigma Golf Nigeria Ltd for acquiring shares in Keystone Bank.

What Transpired in Court: During the arraignment, Kuru pleaded not guilty, while Sigma Golf’s Chairman, Umaru Modibbo, admitted guilt. The EFCC’s counsel, Rotimi Oyedepo (SAN), informed the court that a plea bargain agreement had been reached with the company. This agreement involves the suspect admitting to an offence in exchange for a lighter punishment.

Oyedepo requested the court to adopt the plea bargain agreement as its judgment. The agreement states:

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• Upon conviction, all rights, title, and interest in one unit of Keystone Bank Limited’s ordinary shares allotted to Alhaji Umaru Hamidu Modibbo, Sigma Golf’s Chairman, will be forfeited to the Federal Government, represented by the EFCC.
• The Federal Republic of Nigeria agrees not to pursue further criminal charges against Alhaji Umaru Hamidu Modibbo.
• Sigma Golf Nigeria Limited and Alhaji Umaru Hamidu Modibbo agree to cooperate fully with ongoing or future investigations related to this matter, including providing truthful testimony as required.

The court confirmed the voluntary nature of the agreement with the co-defendant’s legal team. Following this, the court convicted and dissolved Sigma Golf Nigeria Limited, ordering the forfeiture of all rights, title, and interest in its Six Billion, Two Hundred and Fifty Million units of Keystone Bank Limited’s ordinary shares. The trial for the ex-AMCON boss will commence on March 7 and continue on April 16 and 17.

Keystone Bank Reacts: Keystone Bank confirmed the dissolution of Sigma and the forfeiture of its shares to the federal government. The bank noted that the dissolution arose on January 10, 2024, when the Central Bank of Nigeria (CBN) dissolved the previous Board and Management of the Bank for corporate governance breaches.

Following this action, the CBN appointed a new Board and Management for the Bank. Subsequently, the Federal Government, through the EFCC, filed a court action challenging the acquisition of the bank by the former owners. On February 11, 2025, the court ordered the forfeiture of the shares in favor of the federal government.

The bank stated that the implication of this judgment is that Keystone is now fully owned by the Federal Government of Nigeria. Keystone Bank expressed hope that the takeover would 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—due to regulatory breaches. The CBN cited non-compliance with regulations, corporate governance lapses, and activities that posed a risk to financial stability as reasons for this action.