- Keystone Bank has confirmed it is now fully owned by the Federal Government
- This follows a court ruling in a case of alleged conspiracy and stealing against its shareholders
- The bank reassured its customers that it is financially strong and committed to adhering to all regulatory requirements
Keystone Bank has confirmed that it is now fully owned by the Federal Government of Nigeria, following a ruling by the Lagos State Special Offences Court, sitting in Ikeja, Lagos, on Tuesday, February 11, against the bank’s shareholders, in a matter instituted by the Economic and Financial Crimes Commission (EFCC).
The court ordered the forfeiture of shares previously held by former shareholders of the bank, Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo, and the transfer of ownership to the Federal Government.
In a statement on its official X page on Tuesday, February 11, the bank stated that the takeover would enhance its stability and facilitate a smooth recapitalisation process.
The statement read, “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 Economic and Financial Crimes Commission (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 recapitalisation process. With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability.”
‘Keystone remains financially strong’
The bank also assured customers and stakeholders that it is financially strong and follows all regulatory requirements.
It said, “Keystone Bank continues 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.”
Keystone Bank was among the three banks whose boards and management were dissolved by the Central Bank of Nigeria (CBN) on January 10, 2024, leading to the appointment of new leadership. The others are Union Bank and Polaris Bank.
Keystone Bank shareholders’ arraignment
Recall that the EFCC arraigned Sigma Golf Nigeria Ltd and the former Asset Management Corporation of Nigeria (AMCON) boss, Ahmed Kuru, and the company (as a co-defendant) 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.
Following the arraignment, Kuru pleaded not guilty to the offences, while Sigma Golf’s Chairman, Umaru Modibbo, pleaded guilty.
Counsel to the EFCC counsel, Rotimi Oyedepo (SAN), informed the court that the commission reached a plea bargain agreement with the company.
A plea bargain agreement is a legal procedure where 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 court subsequently convicted and ordered the dissolution of Sigma Golf Nigeria Limited in an alleged N20 billion fraudulent diversion case.
Justice Rahman Oshodi, who delivered the judgment, 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 and 17 for the commencement of the trial of the ex-AMCON boss.
Heritage Bank can no longer operate in Nigeria as CBN revokes its licence
Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria revoked the operating licence of Heritage Bank Plc, one of the country’s commercial banks.
This announcement was made on Monday, June 3, 2024, via a press release by the apex bank’s acting director of Corporate Communications, Hakama Sidi Ali.
