Fidelity Bank in battle of its life over ₦225bn Supreme Court order

In a landmark judgment, the Supreme Court of Nigeria has ordered Fidelity Bank Plc to pay ₦225.29 billion in damages to Sagecom Concepts Limited.

The ruling concludes a protracted legal battle stemming from a disputed property transaction involving engineering firm G. Cappa Plc.

The case dates back to 2002 when FSB International Bank, which later merged with Fidelity Bank in 2005, granted a $3 million loan to G. Cappa Plc. The loan was secured by a mortgage on a property located in Ikoyi, Lagos. Following G. Cappa’s default on the loan, FSB sold the mortgaged property to Sagecom Concepts Limited in 2011.

However, G. Cappa continued to occupy the property and collect rents, leading Sagecom to initiate legal action against both G. Cappa and Fidelity Bank for breach of contract and damages.

The Lagos High Court ruled in favour of Sagecom in 2018, awarding damages against both defendants. This judgment was upheld by the Court of Appeal and, subsequently, by the Supreme Court.

The Supreme Court’s decision mandates Fidelity Bank to compensate Sagecom for loss of possession and economic benefits over an extended period. The Lagos High Court had assessed damages at $139,064,896.18, with the naira equivalent calculated at ₦225.29 billion using the official exchange rate of ₦1,620/$ as of May 15, 2025.

Fidelity Bank has expressed concerns over the computation of the judgment debt, stating that its internal calculations estimate the liability at approximately ₦14 billion based on the 2005 exchange rate, or up to ₦30.7 billion if the 2018 rate is applied.

The bank has applied to the Supreme Court for clarification on the judgment, citing ambiguities in the computation of the actual financial liability.

In response to Fidelity Bank’s application, the Supreme Court has ordered all parties to maintain the status quo and restrained Sagecom from further media publications on the matter pending the determination of the bank’s application.

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The situation remains fluid, with Fidelity Bank seeking legal avenues to address the judgment and its financial obligations. The bank has assured its customers and stakeholders of its strong financial position and commitment to fulfilling its obligations.

As the legal proceedings continue, the financial sector and the public await further developments in this significant case.