Why Keystone Bank Is Now Fully Owned by the Federal Government of Nigeria

Keystone Bank Limited officially announced on Tuesday that it is now entirely owned by the Federal Government of Nigeria, following the dissolution of its previous shareholder, Sigma Golf Nigeria Limited, by the court. This decision comes after the Lagos State Special Offences Court, sitting in Ikeja, Lagos, delivered a judgment on February 11, 2025, in a case brought by the Economic and Financial Crimes Commission (EFCC).

The court convicted Sigma Golf and ordered the winding up of the company due to its involvement in an alleged N20 billion fraudulent diversion case. The case also involved the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and Sigma Golf. The EFCC accused Sigma Golf of illegally using AMCON funds through Heritage Bank to acquire shares in Keystone Bank.

Court Proceedings and Judgment

During the proceedings, Kuru pleaded not guilty to the charges, while Sigma Golf’s Chairman, Umaru Modibbo, admitted guilt. A plea bargain was reached between Sigma Golf and the EFCC, which resulted the trial judge, Justice Rahman Oshodi to order the ownership transfer and the forfeiture of 6.3 billion units of ordinary shares held by Sigma Golf in Keystone Bank to the Federal Government at a nominal rate of one naira per share.

The plea bargain agreement states that, following Sigma Golf’s conviction, all of its rights and interests in the bank’s shares would be transferred to the Federal Government. In exchange, Modibbo and Sigma Golf agreed to cooperate fully with the EFCC in future investigations related to the case.

On February 11, 2025, the court confirmed the forfeiture, marking the end of Sigma Golf’s ownership in Keystone Bank. This decision has significant implications for the bank’s future, as it is now under full control of the Federal Government.

Keystone Bank’s Response

Keystone Bank expressed its confidence in the new development, acknowledging that it represents a major milestone in its journey. The bank emphasized that this change will contribute to its stability and create a foundation for a successful recapitalization process.

The Central Bank of Nigeria (CBN) had previously dissolved the bank’s Board and Management in January 2024 due to corporate governance breaches and appointed new leadership. With this court ruling, Keystone Bank is now fully positioned for sustained growth and strengthened partnerships, reinforcing its resilience and commitment to fulfilling all regulatory requirements.

Keystone Bank assured its customers that the institution remains financially strong, healthy, and secure, continuing to provide exceptional value and ensuring a smooth transition into its next phase of development.