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.

After years in the shadows of Nigeria’s financial technology boom, the Nigeria Postal Service (NIPOST) is staging what it calls a bold return to the financial services sector, announcing its readiness to offer both domestic and cross-border payment solutions.

This comes on the back of two key licenses—a Super Agent License and an International Money Transfer Operator (IMTO) License—recently renewed by the Central Bank of Nigeria (CBN), after a prolonged shutdown spanning almost eight years.

According to NIPOST’s Postmaster General and CEO, Tola Odeyemi, who spoke in a Channels Television interview, the agency has now cleared outstanding regulatory fines and is operationally prepared to begin offering financial services. Odeyemi disclosed that the IMTO license, which enables international remittance transfers, had been inactive for nearly a decade due to regulatory issues. But with all penalties now settled, NIPOST is attempting to re-enter a space that is already dominated by fintech firms and digital-first banks.

“NIPOST has two licenses, a Super Agents license as well as an International Money Transfer Operator license. Unfortunately, something had happened with that IMTO license, and it was shut down for about seven, eight years. But last year, we were able to pay off all the fines, and it’s now back up,” she said.

Bilateral Deals to Power Cross-Border Transfers

With renewed focus on financial inclusion, NIPOST says it has begun signing bilateral agreements with countries in West Africa to enable more efficient cross-border payments. Odeyemi pointed out that the agency’s target is to simplify money transfers within the continent, particularly in the ECOWAS region, where remittances are often slow, unreliable, or exorbitantly expensive.

“Sending money from Cameroon to Nigeria is harder than sending money from the U.S. to Nigeria. So, right now we’ve signed bilaterals with Togo, Benin, and I think a couple of other countries. There’s a particular agreement that right now is going through the justice system,” she said.

These bilateral arrangements are expected to support diaspora remittances and regional trade, which is critical given the volume of informal commerce across Nigeria’s borders.

Despite its past struggles, Odeyemi revealed that NIPOST has recorded a turnaround in revenue generation, surpassing N10 billion last year. She attributed the growth to ongoing internal reforms, including digitization of core operations and aggressive cost-cutting.

“We actually surpassed N10 billion last year, and that was just by digitizing some of our processes and plugging leakages. I think for the Nigerian Postal Service, N10 billion naira is a scratch,” she said.

But the agency is now pushing beyond its modest milestone, signaling its intent to transition into a broader public service enterprise that blends logistics, fintech, and identity infrastructure.

Odeyemi highlighted that NIPOST’s transformation includes deeper integration with Nigeria’s growing e-commerce market, development of its PostMoni platform, and expanding the National Addressing System to help financial institutions, security agencies, and even emergency services identify and reach individuals and businesses efficiently.

“If the Nigeria Police adopts NIPOST’s addressing framework, the Force can better combat crimes and improve emergency responses,” she noted.

But Logistics Failures Are Not Over

Despite this renewed ambition, not everyone is convinced that NIPOST is ready to take on such an expansive role. It is largely believed that the agency has woefully failed in its primary role as Nigeria’s postal and courier service, leaving many skeptical about its ability to run a nationwide financial infrastructure. Years of inefficiency, late deliveries, missing parcels, outdated systems, and poor customer service have all contributed to an enduring public perception that NIPOST is neither reliable nor modern.

In fact, many Nigerians, particularly those in the fast-growing e-commerce space, say what the country needs is not another state-run payment platform, but a revitalized postal service that can deliver goods and services promptly and professionally.

Online shoppers and merchants say the agency’s neglect of last-mile delivery and failure to modernize its courier operations is hurting Nigeria’s e-commerce potential. Platforms like Jumia and Konga have built their own delivery networks largely out of necessity, while private courier firms now dominate the space NIPOST was originally created to lead.

Calls have been made for NIPOST to focus on getting its logistics backbone in order, as this would offer the most immediate and tangible value to Nigeria’s digital economy. As more small businesses move online, the demand for reliable, cost-effective nationwide logistics continues to grow, but NIPOST has yet to meet that challenge.

“It took a week for my parcel to get from London to Nipost in Lagos. It took Nipost over a month to deliver it to my house. By then, the company had refunded me because the item was considered lost,” a Nigerian lamented on social media.

Against this backdrop, it is believed that NIPOST’s return to financial services may be premature, or even misguided, if its core mandate remains neglected. The agency’s aging infrastructure, lack of widespread technological capacity, and low consumer trust levels are considered serious obstacles to success in an already saturated digital finance market.

Moreover, while the licenses provide legal backing to operate as a financial services intermediary, there’s little evidence so far that NIPOST has the systems in place to compete with nimble fintech companies that offer slick apps, real-time settlements, 24/7 customer support, and trusted brand equity.

Government’s Broader Reform Agenda

The development follows ongoing reform efforts by Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation and Digital Economy. Tijani, upon taking office, had requested public input on how to transform NIPOST into a modern institution fit for Nigeria’s digital economy.

Some of the suggestions included transforming NIPOST into a neutral logistics backbone akin to how the Nigeria Inter-Bank Settlement System (NIBSS) serves banks. Others recommended partnerships with e-commerce platforms, secure payment gateways, and real-time tracking systems for deliveries.

However, some have noted that NIPOST’s resurgence as a player in financial services may bring new revenue opportunities, especially as the country seeks to expand formal financial access to millions of Nigerians.