Fidelity Bank Seeks Clarity On Supreme Court Ruling, Reaffirms Financial Strength.
Fidelity Bank Plc has moved to address concerns arising from a recent Supreme Court judgement involving a legacy transaction between the defunct FSB International Bank and Sagecom Concepts Limited, asserting its robust financial position and dismissing claims of insolvency as misleading and malicious.
In a statement released on Monday, Meksley Nwagboh, Fidelity Bank’s Divisional Head of Brand and Communications, clarified that the legal matter stems from a 2002 credit facility of USD 3 million extended by FSB International Bank to G. Cappa Plc, secured by a mortgage on a property in Ikoyi, Lagos. Following G. Cappa’s default on the loan, FSB, as the legal mortgagor, sold the leased interest in the property to Sagecom Concepts Limited in 2011, a decision upheld by the Federal High Court in Lagos.
However, complications arose when G. Cappa, which continued to occupy the property and collect rental income, challenged the sale. Sagecom subsequently initiated legal action against both G. Cappa and Fidelity Bank at the Lagos State High Court in 2011, seeking damages for breach of contract and possession of the property. In 2018, the Lagos High Court ruled in Sagecom’s favour, a judgement later upheld by the Supreme Court on 11 April 2025.
Fidelity Bank has acknowledged the ruling and expressed its willingness to settle the obligation. However, the bank noted significant ambiguities in the judgement, particularly regarding the calculation of the financial liability. The bank estimates the settlement figure at approximately N14 billion, based on the exchange rate in 2005 when the cause of action arose. In contrast, some media reports, notably by Peoples Gazette, have claimed the figure to be as high as N225 billion, a sum Fidelity Bank disputes as inflated and unsupported by the Supreme Court’s clarification in the case of Anibaba v Dana Airlines Limited (January 2025). This ruling mandates that foreign currency judgement debts be converted to Naira at the exchange rate prevailing on the trial court’s judgement date, 30 January 2018, which Fidelity calculates would result in a liability of just under N30.7 billion, shared with G. Cappa.
To resolve these discrepancies, Fidelity Bank has applied to the Supreme Court for an interpretation of the judgement to determine the accurate quantum of liability. The court has since ordered all parties to maintain the status quo and issued an interim injunction on 9 May 2025, restraining Sagecom and others from publishing material related to the case, citing the ongoing legal proceedings. Fidelity Bank has condemned publications claiming imminent bankruptcy as “wrongful, unlawful, and constituting contempt of court,” vowing to pursue legal action against those responsible for what it describes as a “malicious and sponsored campaign” aimed at undermining its reputation.
Reassuring stakeholders, Nwagboh emphasised that Fidelity Bank remains one of Nigeria’s most capitalised and profitable financial institutions, with a strong international presence. “The bank is under no threat of bankruptcy and has always been in a position to meet its obligations,” he stated, pointing to the bank’s Q1 2025 financial results, which demonstrate its solid financial standing. The Central Bank of Nigeria (CBN) has also weighed in, reaffirming the resilience of the nation’s banking sector and dismissing unverified reports of distress as baseless.
Despite a 3.85% dip in Fidelity Bank’s stock price on Monday, closing at N20.00 per share, the bank remains confident in its ability to navigate the legal and financial challenges. Discussions with Sagecom’s legal representatives are ongoing to structure a repayment plan, with potential regulatory support from the CBN to ensure systemic stability.
Fidelity Bank’s proactive approach underscores its commitment to transparency and legal compliance while safeguarding the confidence of its depositors, customers, and investors. The bank’s management has called for calm, assuring the public that it remains a cornerstone of Nigeria’s financial landscape.