Fidelity Bank Plc has debunked reports suggesting it faces bankruptcy due to a Supreme Court judgment, describing such claims as “false, malicious, and misleading.” The bank issued a detailed press statement on May 19 to clarify the nature of a legal dispute inherited from the now-defunct FSB International Bank.
The rebuttal follows an online publication that Fidelity Bank faces bankruptcy as Supreme Court orders banking giant to pay N225 billion damages to Nigerian firm.
According to the bank in a statement signed by Meksley Nwagboh, Divisional Head, Brand & Communications, the case stems from a 2002 credit facility of $3 million issued by FSB International Bank to G. Cappa Plc, which was secured by a mortgaged property in Ikoyi, Lagos. When G. Cappa defaulted on repayment, the bank attempted to sell the property, prompting G. Cappa to seek legal restraint through the Federal High Court.
“The Federal High Court in its judgment ruled that the Bank as legal mortgagor rightfully sold the leased interest in the property to Sagecom in 2011,” Fidelity Bank stated. However, the court referred the matter of vacant possession to the Lagos State High Court, while G. Cappa continued collecting rent on the property.
In 2011, Sagecom sued both G. Cappa and the bank for breach of contract and damages. The Lagos State High Court ruled in Sagecom’s favor in 2018, awarding judgment against both parties. The case went to the Supreme Court, where the bank ultimately lost its appeal.
Nonetheless, Fidelity Bank argues that G. Cappa’s prolonged possession of the property caused the bulk of Sagecom’s alleged losses. “The Bank is convinced that by remaining in possession of the property and continuing to collect rents therefrom, G. Cappa orchestrated all the losses suffered by Sagecom,” the statement reads.
The bank has pegged its share of liability at approximately N14 billion based on the 2005 exchange rate when the issue originated. It further noted that a recent Supreme Court decision in Anibaba v Dana Airlines Ltd clarified that foreign currency judgments must be converted using the exchange rate from the date of the trial court’s ruling—in this case, January 30, 2018.
“Even if the 2018 exchange rate supported by the Supreme Court is applied, the judgment debt will just be under N30.7 billion payable by G. Cappa Plc (who delayed delivery of possession of the apartments from 2005 till June 2018) with contribution from the Bank,” Fidelity stated.
The bank also confirmed that it has applied to the court for clarity regarding the computation of its lawful financial obligation. “The Court has accordingly ordered Sagecom to maintain status quo pending the determination of pending motions and restrained Sagecom and all persons from publishing any material in the media as the matter is still pending in court,” it said.
Fidelity strongly condemned the publication, stating: “It is unfortunate that the above clear position and injunctive order made by the Court since 7th May 2025 was not adhered to. Rather, this obviously sponsored publication… has been orchestrated and syndicated in the media with the aim of embarrassing the bank.”
Reaffirming its financial strength, the bank added: “Fidelity Bank remains a very strong and profitable financial institution and amongst the most capitalized Bank in Nigeria today with international operations.”
The statement concluded with a stern warning: “The Bank is taking all necessary steps to apprehend and prosecute any persons or platform directly or indirectly responsible for this wicked, malicious and sponsored publication aimed at embarrassing the Bank and causing panic to its stakeholders.”
