The ruling stems from an appeal filed by Fidelity Bank seeking clarification on several aspects of a judgment debt related to a legacy transaction dating back to 2002. The case originated from a credit facility extended to G. Cappa Plc by FSB International Bank, which merged with Fidelity Bank in 2005, and involved complex legal proceedings tied to the collateral.
Fidelity Bank had requested the Supreme Court to order that the judgment debt of N30,197,286,603 be paid in Naira, rather than in foreign currency, and to apply an interest rate of 19.5% per annum until full settlement, instead of the 19.5% daily compounded rate initially awarded by the High Court. The bank also sought confirmation that the exchange rate to be applied should be the rate at the time of the High Court judgment, in line with the precedent set in Anibaba v. Dana Airlines.
In his ruling, Justice Adamu Jauro granted Fidelity Bank’s key requests, approving payment in Naira at a fixed interest rate of 19.5% per annum and confirming that the exchange rate applicable would be that on the date of the High Court judgment. However, the court denied the bank’s fourth and fifth prayers.
The Supreme Court’s decision significantly reduces the bank’s liability compared with earlier speculation, which had placed potential exposure as high as N225 billion. By resolving this litigation, the court has provided much-needed clarity for both the financial institution and the broader banking sector.
Throughout the drawn-out legal process, Fidelity Bank’s share price remained steady, reflecting investor confidence in the bank’s strong governance framework, prudent risk management practices, and robust financial fundamentals. Analysts note that the ruling is likely to reinforce the bank’s reputation for effective legal and financial stewardship.