The Central Bank of Nigeria (CBN) has reaffirmed the stability and operational soundness of Keystone Bank Limited after a court ruling transferred ownership of the bank’s shares to the Federal Government.
A Lagos State Special Offences Court in Ikeja ordered the forfeiture of 6.3 billion ordinary shares of Keystone Bank, valued at N1 per share, to the Federal Government under President Bola Tinubu.
The ruling followed a guilty plea by Sigma Golf Nigeria Limited, represented by Chairman Umaru Hamidu Modibbo, over the fraudulent diversion of N20 billion belonging to the Asset Management Corporation of Nigeria (AMCON).
Sigma Golf Nigeria Limited was charged alongside Ahmed Kuru, former Managing Director of AMCON, who pleaded not guilty. The Economic and Financial Crimes Commission (EFCC) alleged that the defendants misappropriated AMCON funds through Heritage Bank to acquire Keystone Bank.
The EFCC also accused Ifie Sekibo, the former Managing Director of the now-defunct Heritage Bank, of dishonestly converting N20 billion of AMCON’s property and attempting to conceal another N20 billion obtained from theft. Sekibo remains at large.
During the proceedings, EFCC counsel Rotimi Oyedepo (SAN) informed the court of a plea bargain agreement with Sigma Golf Nigeria Limited. Under this deal, the company pleaded guilty to all charges and agreed to be wound up.
Justice Hakeem Oshodi subsequently convicted Sigma Golf Nigeria Limited and ordered the forfeiture of its 6.25 billion units of Keystone Bank shares to the Federal Government, along with one additional unit allocated to Modibbo.
The plea agreement also ensures that the EFCC will not pursue further criminal charges against Modibbo. Sigma Golf’s legal representative, David Idemu, confirmed that the agreement was entered voluntarily.
Meanwhile, Ahmed Kuru was granted bail set at N50 million, with conditions including two sureties, an affidavit of means, and proof of tax payments for the last three years. The court also directed the EFCC to notify the Nigerian Immigration Service about Kuru’s passport seizure.
Amid public concerns over these developments, the CBN, in a statement issued on Friday by Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, reassured customers and stakeholders of Keystone Bank’s continued stability.
The regulator emphasized that the court’s decision only reaffirmed its earlier intervention in January 2024, when it took over the bank’s management. The CBN has since maintained strict regulatory oversight to ensure compliance with financial standards.
“Keystone Bank Limited remains safe, sound, and fully operational. The CBN remains committed to ensuring the safety of depositors’ funds and the stability of the banking sector,” the statement read.
Customers seeking further clarification have been advised to contact Keystone Bank’s customer support or visit any branch for assistance.
