The Lagos State Special Offences Court in Ikeja had ordered the forfeiture of 6.3 billion units of ordinary shares of Keystone Bank Limited, valued at N1 per share, to the Federal Government of Nigeria, led by President Bola Tinubu.

The Central Bank of Nigeria (CBN) has reassured the public that Keystone Bank Limited remains stable and fully operational following a court ruling that transferred ownership of the bank’s shares to the Federal Government.

The Lagos State Special Offences Court in Ikeja had ordered the forfeiture of 6.3 billion units of ordinary shares of Keystone Bank Limited, valued at N1 per share, to the Federal Government of Nigeria, led by President Bola Tinubu.

The court's decision followed a guilty plea by Sigma Golf Nigeria Limited, represented by its Chairman, Umaru Hamidu Modibbo, over the fraudulent conversion of N20 billion belonging to the Asset Management Corporation of Nigeria (AMCON).

Sigma Golf Nigeria Limited was arraigned alongside Ahmed Kuru, a former Managing Director of AMCON, who pleaded not guilty to the charges.

The Economic and Financial Crimes Commission (EFCC) had filed a six-count amended charge, alleging that the defendants diverted AMCON funds through Heritage Bank to facilitate the acquisition of Keystone Bank.

The EFCC also accused Ifie Sekibo, the former Managing Director of the now-defunct Heritage Bank (currently at large), of dishonestly converting N20 billion of AMCON’s property and transferring another N20 billion derived from theft in an attempt to conceal its source.

During Tuesday’s proceedings, EFCC counsel, Rotimi Oyedepo (SAN), informed the court that Sigma Golf Nigeria Limited had reached a plea bargain agreement with the commission. As part of the deal, Sigma Golf pleaded guilty to all charges and agreed to be wound up by the court.

Justice Hakeem Oshodi convicted Sigma Golf Nigeria Limited and ordered the forfeiture of all rights, titles, and interests in 6,250,000,000 units of Keystone Bank's ordinary shares to the Federal Government, represented by the EFCC.

Additionally, one unit of ordinary shares allocated to Alhaji Umaru Hamidu Modibbo was also forfeited.

Under the agreement, the EFCC will not pursue criminal charges against Modibbo in the future. Both Sigma Golf and its legal representative, David Idemu, confirmed that the plea bargain was voluntary and without coercion.

Meanwhile, Ahmed Kuru was granted bail set at N50 million, with two sureties required to swear an affidavit of means and provide evidence of tax payments for the last three years. The court also directed the EFCC to notify the Nigerian Immigration Service regarding the seizure of Kuru’s passport.

However, in a statement issued on Friday, CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, emphasised that the financial regulator remains committed to ensuring the safety of depositors' funds and the overall stability of the banking sector.

The CBN clarified that the court order merely reaffirmed its earlier decision to take over Keystone Bank’s management in January 2024, following leadership changes. Since then, the bank has been under strict regulatory oversight to ensure compliance with financial standards and transparency.

Customers with inquiries have been advised to reach out to Keystone Bank’s customer support or visit any branch for assistance.

The statement reads in part, "Following the court order that the shares of Keystone Bank Limited previously held by the shareholders be forfeited to the Federal Government of Nigeria, the Central Bank of Nigeria (CBN) wishes to reassure the public that Keystone Bank Limited remains safe, sound, and fully operational.

"We acknowledge that this development may have triggered customer concerns; however, we wish to underscore that the stability of the banking system and the safety of depositors' funds remain our top priorities. Keystone Bank's operations are entirely secure, and there is no reason for concern.

"For clarity, the Court Order merely reaffirmed the Central Bank of Nigeria's prior decision to take over the management of Keystone Bank Limited in January 2024, following a change in its leadership. Since then, the CBN has closely monitored the bank's operations to ensure they are in full compliance with regulatory standards, operational transparency, and the interests of depositors.

"As part of our commitment to safeguarding the financial system and building public trust, we shall continue to monitor the bank's performance. We will take all necessary steps to protect the interests of depositors, staff, and stakeholders.

"Customers are also encouraged to contact Keystone Bank's customer support or visit any Keystone Bank branch for inquiries or concerns," the statement added.