The colossal sum, awarded as damages to Ibadan-based firm Sagecom Concept Limited, stems from a protracted tort dispute. While Fidelity Bank has initiated discussions for a structured repayment plan, sources close to the matter suggest that the immediate urgency emphasized in the Supreme Court’s ruling could severely constrain the bank’s ability to stagger payments without risking a solvency crisis.
“This is the biggest crisis the bank has ever faced,” a top official reportedly stated during a recent video call, according to People’s Gazette. “The obligation is simply too big. If the bank survives this, it will be thanks to the goodwill of the small business that won this unprecedented judgment.” The anonymous insider further revealed that the judgment has deeply unsettled Fidelity's top management.
Financial Position Under Scrutiny
Despite closing at ₦20.80 per share on Friday and having enjoyed a remarkable 140% stock surge this year, Fidelity Bank’s financial position is now under intense scrutiny. While the bank declared ₦385 billion in pre-tax profits for 2024, officials have reportedly admitted that a significant portion of this profit is tied to rolled-over loans, raising serious questions about its capacity to absorb such a substantial court-ordered payment.
As of Monday, no financial institutions have come forward to underwrite this massive liability. A source familiar with Nigeria’s financial system indicated that the Central Bank of Nigeria (CBN) might be compelled to intervene to prevent the potential collapse of a Tier-1 bank, particularly amidst a fragile national economy.
Both Fidelity Bank and its legal representatives, including senior advocates Kanu Agabi and Onyechi Ikpeazu, have declined to comment on the ongoing matter.
The Genesis of the Legal Battle
The complex legal battle originated from two loans extended to the engineering firm G. Cappa Plc by FSB International Bank in the early 2000s: one for $3 million and another for ₦100 million, both carrying steep interest rates. Fidelity Bank subsequently acquired FSB International Bank and its associated liabilities during the 2005 banking sector consolidation.
Following an alleged default by G. Cappa, Fidelity Bank began the process of seizing assets in Ikoyi and Ibadan that had been used as collateral. Crucially, a federal judge had issued an order for the bank to halt these asset sales. However, Fidelity allegedly disregarded this order and proceeded to list the properties for sale, eventually selling some to Sagecom Concept Limited for ₦350 million.
Sagecom, co-founded by Bamidele Ogunkanmi and U.S.-based Dakore Miriki, later discovered a 2006 court-issued disclaimer explicitly prohibiting the sale of these properties. Citing this injunction, the firm initiated legal proceedings to recover its funds.
Supreme Court Upholds Damages
The case traversed through the Lagos High Court and the Court of Appeal before finally reaching the Supreme Court in 2018. On April 11, 2025, a panel of five justices unanimously ruled in favor of Sagecom.
Justice Adamu Jauro, delivering the lead judgment, powerfully articulated the court's stance: “Allowing the appellant to escape liability as it so desperately seeks would be tantamount to allowing it to benefit from its own wrong.” In her concurring opinion, Justice Jummai Hannatu Sankey condemned Fidelity’s conduct as “a deliberate disregard” for court authority and Sagecom’s rights. Crucially, the justices unanimously found no miscarriage of justice in the lower courts’ findings, thereby upholding the original judgment.
The Lagos High Court had initially ruled in 2011 that Fidelity owed Sagecom compensation for years of lost rental income on the disputed properties. Justice Olabisi Akinlade recently updated this award to reflect current values, arriving at the staggering sum of $139 million or ₦225.3 billion, calculated using an exchange rate of ₦1,620 per dollar as of May 15, 2025.
Fidelity is anticipated to challenge the final calculation during a scheduled court hearing on May 19. However, insiders believe that significant changes are unlikely, as Justice Akinlade has already clarified that the naira equivalent will ultimately be determined by the official exchange rate on the actual date of payment.
Fidelity's History of Aggressive Loan Recovery
Fidelity Bank, currently led by its first female CEO, Nneka Onyeali-Ikpe, holds the position of Nigeria’s sixth-largest bank by assets. Former presidential candidate Peter Obi once chaired the bank before assuming the governorship of Anambra State in 2003.
Despite its prominent standing, the bank has long faced criticism for its aggressive loan recovery practices. A recent case involved a Lagos family attributing the death of a real estate investor to Fidelity amid a loan dispute. While the bank maintains its innocence in this particular case, it has often cited regulatory pressure from the CBN as a reason for its stringent loan terms. The CBN, however, has not publicly commented on the current situation. The unfolding legal and financial ramifications of this monumental judgment debt will undoubtedly be a defining moment for Fidelity Bank and potentially for the broader Nigerian financial sector.