By Staff Writer
Fidelity emphasized that it remains one of Nigeria’s most capitalized and profitable banks, with international operations and a strong financial outlook
Fidelity Bank Dispels Bankruptcy Rumors, Clarifies N225 Billion Court Judgment
LAGOS, Nigeria — May 20, 2025 — Fidelity Bank Plc has responded to media reports suggesting it is facing bankruptcy following a Supreme Court judgment, calling the claims “misleading” and “contemptuous,” while reaffirming its financial stability.
The bank issued a statement in reaction to a recent publication by Peoples Gazette, which claimed that the Supreme Court had ordered Fidelity to pay N225 billion in damages to Sagecom Concepts Limited. The article referenced a longstanding legal dispute inherited by Fidelity Bank following its merger with the now-defunct FSB International Bank.
According to Meksley Nwagboh, Divisional Head of Brand & Communications at Fidelity Bank, the matter stems from a 2002 credit facility granted by FSB to G. Cappa Plc, secured by a mortgaged property in Ikoyi, Lagos. After G. Cappa defaulted on the loan, it initiated a lawsuit to prevent the sale of the property. In 2011, FSB sold the leasehold interest in the property to Sagecom, with court backing, though the issue of possession remained unresolved.
Despite court rulings, G. Cappa continued to occupy the property and collect rental income, prompting Sagecom to sue both G. Cappa and the bank in 2011. In 2018, a Lagos High Court ruled in Sagecom’s favor, awarding damages, which were later challenged up to the Supreme Court.
Fidelity Bank insists the core losses stemmed from G. Cappa’s prolonged possession of the property, not the bank’s actions. While the Supreme Court has upheld the 2018 judgment, Fidelity says ambiguities in the ruling have made it difficult to determine the actual amount owed. The bank estimates its share of the liability to be about N14 billion, based on the exchange rate in 2005, when the cause of action arose.
The bank also referenced a 2025 Supreme Court ruling in Anibaba v Dana Airlines Ltd, which clarified that judgment debts in foreign currency should be converted at the exchange rate as of the trial court’s decision—in this case, January 30, 2018. Based on that rate, Fidelity believes the total judgment debt—primarily owed by G. Cappa—amounts to just under N30.7 billion.
Fidelity said it has applied to the court for clarification on the interpretation of the judgment and the accurate calculation of its liability. The court has since ordered all parties, including Sagecom, to maintain the status quo and refrain from further media publications while the matter remains pending.
The bank condemned the Peoples Gazette report as “malicious and sponsored,” alleging it was intended to embarrass the institution and mislead the public. Fidelity emphasized that it remains one of Nigeria’s most capitalized and profitable banks, with international operations and a strong financial outlook. The bank pointed to its Q1 2025 financial results as evidence of its stability.
Fidelity further stated that it is taking legal steps to identify and prosecute individuals or platforms responsible for publishing what it calls false and defamatory content.
A court order prohibiting further media coverage of the case is currently in effect.
