Fidelity Bank seeks Supreme Court clarification on legacy loan, denies bankruptcy claims

Fidelity Bank Plc has filed an application for judicial clarification of a Supreme Court judgment concerning a legacy loan transaction originally handled by the defunct FSB International Bank and involving Sagecom Concepts Limited.

The move comes amid what the bank describes as “misleading and malicious” media reports suggesting it faces imminent bankruptcy.

In a statement issued on Monday, the bank’s Head of Brand & Communications, Meksley Nwagboh, explained that the Supreme Court judgment in question stems from a 2002 loan facility of $3 million granted by FSB to G. Cappa Plc, secured by a mortgage on a property in Ikoyi, Lagos.

According to Nwagboh, G. Cappa defaulted on the facility and then took legal action in an attempt to prevent FSB from exercising its rights over the mortgaged asset.

The Federal High Court eventually ruled in favour of FSB, affirming its right to sell the leased interest in the property to Sagecom in 2011. However, the issue of vacant possession was deferred to the Lagos State High Court.

“G. Cappa remained in possession of the property and continued collecting rents from it, even after the sale to Sagecom,” the statement read.

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In 2011, Sagecom filed a lawsuit at the Lagos State High Court against both the bank and G. Cappa, claiming liquidated damages and possession of the property.

By 2018, the court awarded damages in favour of Sagecom, a decision that was later appealed up to the Supreme Court.

Fidelity Bank maintains that the ongoing occupation and rent collection by G. Cappa was the root cause of Sagecom’s claimed losses.

Despite exhausting all appeals, the bank expressed its willingness to settle the judgment debt, but highlighted significant ambiguities in the ruling, particularly around the calculation of the actual financial liability.

The bank estimates the debt at ₦14 billion based on 2005 exchange rates, but acknowledged that a 2025 Supreme Court judgment in Anibaba v Dana Airlines Ltd clarified that foreign currency debts should be converted at the exchange rate applicable at the trial court’s judgment date—in this case, January 30, 2018.

Applying the 2018 rate, the judgment debt could amount to ₦30.7 billion, shared between G. Cappa and the bank. As a result, Fidelity has requested further judicial interpretation and clarification on the matter.

The court has since ordered Sagecom to maintain the status quo, barring further media publications while motions remain pending.

According to the statement, this includes a restraining order against all persons or platforms from making public statements about the case.

Nwagboh criticised recent reports—particularly a publication by Peoples Gazette—as false, unlawful, and in contempt of court, warning of potential legal action against those responsible.

“Fidelity Bank remains a solid and profitable financial institution. We are among the most capitalized banks in Nigeria, with international operations, and continue to meet all financial obligations without fail,” Nwagboh said.

The bank also cited its Q1 2025 financial results as evidence of its robust position, and reassured stakeholders—depositors, customers, investors, and the general public—of its continued financial health.

The statement concluded with a warning that Fidelity Bank is taking legal steps to identify and prosecute those behind the misleading publication, which it described as a “malicious and sponsored attempt” to damage the bank’s reputation and incite public panic.