Fidelity Bank Plc has noted the recent publication by Peoples Gazette titled “EXCLUSIVE: Fidelity faces bankruptcy as Supreme Court orders banking giant to pay N225 billion damages to Nigerian firm.”
Background to the Dispute
The matter in question stems from a legacy transaction involving the now-defunct FSB International Bank and Sagecom Concepts Limited. In 2002, FSB extended a USD3 million credit facility to G. Cappa Plc, secured by a mortgaged property in Ikoyi. When G. Cappa Plc defaulted, they sought to prevent the bank from exercising its legal right to sell the mortgaged asset. The Federal High Court, Lagos, upheld the bank’s right to sell, and the property was transferred to Sagecom in 2011.
However, the Court declined to order vacant possession, directing that issue to the Lagos State High Court. In the interim, G. Cappa remained in control of the property and continued collecting rent.
In response, Sagecom filed a suit against both the bank and G. Cappa in 2011, claiming damages for breach of contract and seeking possession of the property. Their claim included calculated rental income across multiple units and interest accrued over several years. In 2018, the Lagos State High Court ruled in Sagecom’s favour, prompting an appeal to the Supreme Court. Throughout this period, Fidelity Bank has maintained that G. Cappa’s continued occupation was the primary driver of Sagecom’s losses.
Although the Supreme Court has now ruled on the matter, there remain significant ambiguities in the judgment, particularly regarding the proper computation of damages. According to the bank’s assessment, based on the applicable exchange rate from 2005, when the dispute originated, the liability is approximately N14 billion. Even applying the 2018 exchange rate, as recently affirmed by the Supreme Court in Anibaba v. Dana Airlines Ltd, the amount would be around N30.7 billion, largely attributable to G. Cappa Plc, who withheld possession for 13 years, with some contributory liability by the bank.
Fidelity Bank has since approached the Court to seek clarification on the financial quantum and proper apportionment of the judgment. The Court, in its wisdom, has ordered that the status quo be maintained and restrained all parties, including Sagecom, from media commentary pending the outcome of the ongoing legal process.
Unlawful Publication and Contempt
It is unfortunate that Peoples Gazette proceeded to publish false and misleading information, in clear violation of the Court’s order dated May 7, 2025. This publication, evidently sponsored and widely syndicated, appears to be a calculated attempt to tarnish the bank’s image and incite public concern.
Fidelity Bank’s Financial Standing
Fidelity Bank remains a robust, well-capitalized, and highly profitable financial institution, with operations extending beyond Nigeria. The bank is not in bankruptcy, nor is it at risk of such. Our Q1 2025 financial results, publicly available, affirm our strong liquidity position and continued profitability.
Our Response
We wish to assure our esteemed customers, depositors, investors, and the general public that the bank continues to meet its lawful obligations without fail. Furthermore, steps are being taken to identify and prosecute those behind this malicious publication intended to create undue panic and embarrassment.
Court Order Attached
A Court Order prohibiting further media publications on this matter is hereby attached.
Signed:
Meksley Nwagboh
Divisional Head, Brand & Communication
Fidelity Bank Plc
