FG takes full ownership of Keystone Bank after Sigma Golf’s plea deal

The federal government has officially taken full ownership of Keystone Bank Limited after the Lagos state special offences court approved the forfeiture of shares previously held by its former shareholder, Sigma Golf Nigeria Limited.

Keystone Bank announced the development in a statement on Tuesday.

The court, sitting in Ikeja, approved a plea bargain agreement between Sigma Golf and the Economic and Financial Crimes Commission (EFCC), which led to Sigma Golf agreeing to wind up and forfeit N6,3 billion shares held in Keystone Bank to the federal government.

The decision comes a month after AMCON handed over Keystone Bank to the Sigma Golf-Riverbank consortium.

Following the court approval, Keystone Bank said the judgment means the bank is now entirely owned by the federal government.

“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 said.

“The implication of this judgment is that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria.”

‘TAKEOVER MARKS A SIGNIFICANT MILESTONE IN OUR JOURNEY’

Keystone Bank said the development marks 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,” the bank added.

“Keystone Bank continues to strengthen its balance sheet while delivering exceptional value to its teeming stakeholders.”

Keystone Bank assured its customers and stakeholders of a strong financial position and continued commitment to regulatory compliance, stating that it remains “safe, healthy, strong, and resilient.”

The acquisition of Keystone Bank was the subject of a probe by a special investigation panel scrutinising the activities of the Central Bank of Nigeria (CBN) and related entities.

On December 23, 2023, a report by the special investigation panel, led by Jim Obazee, said Keystone Bank was acquired without payment evidence.

The panel said some persons were used as proxies with the “connivance and assistance” of Godwin Emefiele, the then CBN governor, and the central bank, to acquire Keystone Bank.

Providing findings leading to the acquisition of Keystone Bank, the panel said Ahmed Kuru, the former managing director (MD) of the Asset Management Corporation of Nigeria (AMCOM), moved “N20 billion to Heritage Bank as placement sometime in 2017”.

As a result, the panel said Heritage Bank granted a loan of “N25 billion to the promoters of ISA FUNTUA/EMEFIELE GROUP’S acquisition vehicles to buy Keystone Bank”.

The panel said the former AMCON MD said two payments were received into an account with CBN; “N5.0 Billion and N20.08 Billion in June 2016 and March 2017 from Sigma Golf Consortium”.

However, according to the panel, a statement received from the CBN confirming AMCON MD’s claims did not reflect the banks from which the money came.

Therefore, the panel said “Keystone Bank was acquired for free”, based on a preliminary review of the case.