Fidelity Bank Disputes N225bn Supreme Court Claim, Says Liability Closer to N14bn

Fidelity Bank Plc has denied media reports claiming that the Supreme Court has ordered it to pay a staggering N225 billion to Sagecom Concepts Limited, describing the figures as grossly inflated and misleading.

The bank clarified that its computation, based on legal precedent and the context of the case, puts the liability closer to N14 billion.

The clarification comes amid swirling concerns triggered by a recent People’s Gazette report, which suggested the bank had entered negotiations with Sagecom’s legal team to arrange a structured repayment of the massive judgment debt. The report, quoting insiders, claimed Fidelity was struggling under the weight of the financial obligation and risked insolvency unless a settlement was quickly reached.

“This is the biggest crisis the bank has ever faced,” PG quoted a top bank official as saying, during a weekend video call. “The obligation is simply too big. If the bank survives this, it will be thanks to the goodwill of the small business that won this unprecedented judgment.”

The publication sparked anxiety within financial circles and on social media, prompting Fidelity to issue a detailed rebuttal on Monday. The bank accused unnamed parties of deliberately orchestrating and syndicating the story to embarrass the institution and sow doubts about its financial health.

Origins of the Dispute

The legal battle dates back more than two decades, tracing its roots to a 2002 credit facility granted by the now-defunct FSB International Bank—later acquired by Fidelity Bank—to G. Cappa Plc. The facility, valued at $3 million, was secured with a mortgage on a property located in Ikoyi, Lagos.

G. Cappa allegedly defaulted on the loan. To recover the debt, FSB moved to sell the mortgaged property. But in a bid to halt the sale, G. Cappa filed a lawsuit at the Federal High Court in Lagos seeking to restrain the bank from disposing of the asset.

The court eventually ruled in favor of the bank, affirming its right as legal mortgagor to sell the property, which it did in 2011 to Sagecom Concepts Limited. However, it stopped short of granting Sagecom vacant possession, instead referring the matter to the Lagos State High Court for determination.

G. Cappa remained in physical possession of the property, continued to collect rent from it, and refused to hand over control to Sagecom, despite the sale. This prompted Sagecom to file a lawsuit against both G. Cappa and Fidelity Bank in 2011, seeking damages for breach of contract and compensation for the denied use of the property.

In 2018, the Lagos High Court ruled in favor of Sagecom and awarded significant damages. The judgment was appealed, eventually landing at the Supreme Court, which upheld the ruling earlier this year.

Fidelity Bank’s Response

In a statement signed by Meksley Nwagboh, Divisional Head of Brand & Communications, Fidelity Bank, confirmed the judgment but strongly disputed the figures being circulated in the media.

“We take these malicious reports seriously and are committed to protecting our bank’s reputation and the interests of our stakeholders. Rest assured, Fidelity Bank continues to operate as one of Nigeria’s most capitalized financial institutions, with no risk of bankruptcy,” the statement said.

The bank referenced a Supreme Court judgment delivered in January 2025 in Anibaba v. Dana Airlines Ltd, which held that foreign currency judgment debts must be converted into naira at the exchange rate prevailing on the date of the trial court’s judgment. Applying that standard to the 30 January 2018 judgment in the Sagecom case, the bank said the total debt would still not exceed N30.7 billion.

Even at that, the bank insisted that G. Cappa should bear a significant share of the liability, having remained in possession of the property and allegedly collected rent between 2005 and 2018, when possession was finally delivered to Sagecom.

“Sagecom’s claim was largely made up of lost rental income and interest. G. Cappa’s actions in retaining possession caused the bulk of that loss,” the statement noted.

Fidelity said it has since applied to the Supreme Court for clarification of the judgment, citing “significant ambiguities” in its interpretation and implementation.

The bank is seeking an official judicial inquiry into the proper quantification of the judgment debt and how the liability is to be shared between it and G. Cappa.

The apex court reportedly issued an injunction on 7 May 2025, ordering all parties to maintain the status quo. It also restrained Sagecom and other entities from publishing any material on the matter in the media pending the determination of Fidelity’s application.

The bank expressed concern that the order has been ignored by some stakeholders, leading to a wave of speculative reports, which it says are aimed at damaging its reputation.

In the face of rising speculation, Fidelity Bank used the opportunity to reaffirm its financial strength and operational soundness. The bank said it remains highly capitalized and profitable, with international operations and a strong asset base.

“These claims are unfounded, and we want to assure our customers, investors, and the public that Fidelity Bank remains financially strong, profitable, and fully capable of meeting all its obligations,” the bank said.

Fidelity cited its Q1 2025 financial results as evidence of its health, noting that these are publicly available for verification. The bank’s shares closed at N20.05 on the Nigerian Exchange on Monday, with a modest 0.5% month-to-date performance.

While Fidelity continues to contest the reported amount, financial analysts note that the bank’s swift move to clarify its position reflects the sensitivity of the issue in the financial system.

However, there’s no official confirmation yet about the rumored negotiations between the bank and Sagecom’s legal team, although industry insiders suggest discussions have commenced privately to settle the matter without further escalation.