The Lagos State Special Offences Court in Ikeja has ordered the forfeiture of 6.3 billion units of ordinary shares in Keystone Bank Limited, valued at N1.00 each, to the Federal Government of Nigeria. Justice Ramon Oshodi made the order on Tuesday following the guilty plea of Sigma Golf Nigeria Limited, represented by its Chairman, Umaru Hamidu Modibbo, in a N20bn fraud case filed by the Economic and Financial Crimes Commission. The EFCC told the court that the defendants fraudulently converted the sum of N20bn belonging to the Asset Management Corporation of Nigeria to acquire the Keystone Bank shares. Sigma Golf Nigeria Limited was arraigned alongside a former Managing Director of AMCON, Ahmed Kuru, and pleaded guilty after reaching a plea bargain agreement with the EFCC. However, Kuru, the first defendant, pleaded not guilty to the charges. The commission, in amended six counts, alleged that the AMCON funds were diverted through Sigma Golf Nigeria Limited, facilitating its acquisition of Keystone Bank. The anti-graft agency, led by its Chairman, Olanipekun Olukoyede, also accused Kuru, alongside Ifie Sekibo, the former Managing Director of the defunct Heritage Bank (who is at large), of dishonestly converting N20bn of AMCON’s funds. They were further accused of transferring an additional N20bn derived from theft, with the intent to conceal its source. According to EFCC, the offence committed contravened Section 332(1) of the Criminal Law of Lagos State 2011, punishable under Section 332(3) of the same law. During Tuesday’s proceedings, EFCC counsel, Rotimi Oyedepo (SAN), informed the court that the commission and Sigma Golf Nigeria Limited had reached an agreement to settle the matter amicably and in accordance with the law, principle, of justice, and due regard to public policy. Oyedepo explained that under the plea bargain agreement, Sigma Golf Nigeria Limited pleaded guilty to all six charges and would be wound up by the court. He further stated that all rights, titles, and interests in 6,250,000,000 units of Keystone Bank Limited’s ordinary shares would be forfeited to the Federal Government, as represented by the EFCC. Additionally, the court would order the forfeiture of one unit of ordinary shares allocated to Modibbo, the company’s current chairman. Oyedepo told the court that “The complainant agrees not to pursue criminal charges now or in the future against Alhaji Umaru Hamidu Modibbo.” Both the convicted company and its legal representative, David Idemu, confirmed that the plea bargain was entered into voluntarily and without coercion. Similarly, Kuru’s lawyer, Olasupo Shasore (SAN), did not object to the agreement. Consequently, Justice Oshodi convicted Sigma Golf Nigeria Limited and adopted the terms of the plea bargain agreement. The judge also granted bail to Kuru in the sum of N50m, with two sureties who must swear an affidavit of means before the court and provide evidence of tax payments for the last three years. Also, the court directed the EFCC to inform the Nigerian Immigration Service of the seizure of Kuru’s passport by the court registrar. While adjourning the case to March 7, 2025, for trial, the court temporarily released Kuru to his lawyer pending the perfection of his bail conditions. In an Instagram post on Tuesday, Keystone Bank’s management confirmed the takeover of the 6.2bn shares by the Federal Government, saying the development would strengthen the bank. The bank stated: “Keystone Bank Limited wishes to clarify the media report of a judgment by the Lagos State Special Offences Court, sitting in Ikeja, Lagos, on Tuesday, February 11, 2025, regarding the status of the former shareholders of the bank: Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo. “Subsequently, the Federal Government, through the EFCC, filed a court action at the Lagos State High Court, Ikeja, against the former owner, 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 added that the development marked a significant milestone in its journey, reinforcing its 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 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 one of the three banks whose board and management were sacked by the Central Bank of Nigeria on January 10, 2024, and subsequently appointed new management.