The federal government of Nigeria has officially taken full ownership of Keystone Bank Limited following a court-approved forfeiture of shares previously held by Sigma Golf Nigeria Limited.
In a statement released on Tuesday, Keystone Bank confirmed that the Lagos State Special Offences Court in Ikeja sanctioned a plea bargain agreement between Sigma Golf and the Economic and Financial Crimes Commission (EFCC).
As part of the deal, Sigma Golf agreed to dissolve its operations and forfeit ₦6.3 billion worth of shares in Keystone Bank to the federal government.
A major shift in ownership
This development follows the recent transition of Keystone Bank’s ownership from the Asset Management Corporation of Nigeria (AMCON) to the Sigma Golf-Riverbank Consortium.
However, with the court’s latest ruling, the federal government has now assumed full control 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,” Keystone Bank stated.
“The implication of this judgment is that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria.”
Keystone Bank: A new chapter begins
The bank described this takeover as a “significant milestone,” reinforcing its stability and setting the stage for recapitalisation and long-term growth.
“With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability,” the bank added.
It also assured customers and stakeholders of its strong financial standing, commitment to regulatory compliance, and continued efforts to deliver exceptional value.
Keystone Bank’s controversial acquisition under investigation
Keystone Bank’s ownership history has been under scrutiny following findings by a special investigative panel examining the Central Bank of Nigeria (CBN) and related entities.
On December 23, 2023, the panel—led by Jim Obazee—revealed that Keystone Bank was acquired without clear evidence of payment.
The investigation found that proxies were allegedly used in the acquisition, with the connivance of then CBN Governor, Godwin Emefiele.
The report also stated that Ahmed Kuru, former Managing Director of AMCON, facilitated a ₦20 billion placement to Heritage Bank in 2017.
This transaction allegedly enabled Heritage Bank to issue a ₦25 billion loan to the ISA FUNTUA/EMEFIELE GROUP for acquiring Keystone Bank.
Further, the panel highlighted a lack of transparency in the financial records, stating: “The former AMCON MD said two payments were received into an account with CBN; ₦5.0 billion and ₦20.08 billion in June 2016 and March 2017 from Sigma Golf Consortium.”
However, the CBN’s statement confirming these payments did not specify the banks from which the funds originated.
Based on its preliminary findings, the investigative panel concluded that: “Keystone Bank was acquired for free.”
Implications of government ownership
With the federal government now fully in control, Keystone Bank is expected to undergo a restructuring process aimed at ensuring stability and operational efficiency.
Industry analysts believe this move could enhance public trust and investor confidence in the institution.
As the government navigates this transition, stakeholders will be keenly watching for updates on recapitalisation efforts and any further regulatory actions stemming from the ongoing investigation.
