In a landmark ruling that has sent shockwaves through Nigeria’s financial sector, an Ikeja Special Offences Court has ordered the forfeiture of Keystone Bank’s controlling shares to the Federal Government. The court also directed the immediate liquidation of Sigma Golf Nigeria Limited, the company that held the majority stake in the bank.
Justice Rahman Oshodi delivered the ruling on Tuesday, following the guilty plea of Sigma Golf’s chairman, Umaru Hamidu-Modibbo, who represented the company in court. The case was brought against the firm by the Economic and Financial Crimes Commission (EFCC) over allegations of financial misconduct, conspiracy, and fraudulent conversion of funds.
A Plea Deal That Sealed the Fate
The dramatic court decision came after Sigma Golf entered a plea bargain agreement with the EFCC. The company pleaded guilty to an amended six-count charge involving conspiracy to steal, stealing, and transferring stolen property to conceal its origin.
Justice Oshodi, in his judgment, stated:
“I am satisfied that the second defendant (Sigma Golf) was aware of the nature of the amended charges and the consequences of its plea. All its rights, title, and interest in the 6,250,000,000 units of Keystone Bank’s ordinary shares shall be forfeited to the Federal Government of Nigeria, represented by the Economic and Financial Crimes Commission.”
The judge further ruled that Sigma Golf must fully cooperate with the EFCC in ongoing and future investigations, including testifying if required. In return, the EFCC agreed not to pursue further criminal charges against Hamidu-Modibbo and the company.
The Multi-Billion Naira Fraud Scandal
The EFCC’s case against Sigma Golf stems from a N20 billion fraud scandal that dates back to 2016. According to the anti-graft agency, the funds—originally belonging to the Asset Management Corporation of Nigeria (AMCON)—were dishonestly diverted through Heritage Bank to facilitate the acquisition of Keystone Bank by Sigma Golf.
EFCC lead prosecutor, Rotimi Oyedepo (SAN), explained that Sigma Golf and its accomplices also laundered N10 billion, disguising the illicit transaction to evade detection and legal consequences.
“This is a clear case of financial misappropriation at the highest level,” Oyedepo told the court. “The plea bargain agreement is in line with legal principles, public policy, and justice.”
Key Figures in the Case
While Sigma Golf has accepted guilt, the legal battle is far from over. A former Managing Director of AMCON, Ahmed Kuru, who was also arraigned in connection to the case, pleaded not guilty to the charges against him. His trial is set to begin on March 7.
Additionally, another key suspect, Ifie Sekino, remains at large. The EFCC has vowed to pursue him and bring him to justice.
Legal Ramifications and Banking Sector Impact
The court’s ruling marks one of the most significant takeovers of a private bank by the Federal Government in recent years. Analysts say the development could have wide-ranging implications for Nigeria’s banking sector, particularly concerning regulatory oversight and the transparency of financial transactions.
A legal expert who spoke on the condition of anonymity described the ruling as “a warning shot” to corporate entities involved in questionable acquisitions.
“This judgment sends a strong message that financial crimes, especially those involving public funds, will not be tolerated,” the expert said. “Forfeiture of assets and liquidation of firms involved in fraud could become a more frequent strategy by the EFCC.”
What Happens Next?
With the court-ordered liquidation of Sigma Golf, all its assets—including its stake in Keystone Bank—will be fully transferred to the Federal Government. Meanwhile, Kuru’s trial could expose further details about how the alleged fraud was orchestrated.
The EFCC has reaffirmed its commitment to ensuring that individuals and entities involved in financial crimes are held accountable.
“We will continue to investigate and prosecute cases like this to protect Nigeria’s financial stability,” an EFCC spokesperson said.
