Fidelity Bank Plc has entered into negotiations with the legal team of Sagecom Concept Ltd to resolve a Supreme Court-ordered judgment debt now estimated at ₦225.3 billion, stemming from a protracted real estate and financial dispute spanning over two decades.
The Supreme Court of Nigeria had, on April 11, 2025, unanimously upheld lower court rulings holding the bank liable for breaching court orders and selling encumbered properties to Sagecom Concept Ltd. The apex court condemned Fidelity’s actions, with Justice Adamu Jauro describing the bank’s conduct as an attempt to “benefit from its own wrong.”
Justice Jummai Hannatu Sankey, in a concurring opinion, labelled Fidelity’s conduct a “deliberate disregard” for court authority.
The legal battle dates back to 2002 when engineering firm G. Cappa Plc took two loans from FSB International Bank—$3 million and ₦100 million—secured by real estate in Lagos and Ibadan. Following G. Cappa’s alleged default, FSB (later acquired by Fidelity Bank in 2005) moved to recover the debt by selling the collateralized assets.
Despite a restraining order by a federal court, Fidelity Bank sold parts of the properties to Sagecom Concept Ltd in 2011 for ₦350 million. The properties were never transferred, and Sagecom later discovered a pre-existing court disclaimer barring the sale.
This led to a series of lawsuits, culminating in a 2018 Lagos High Court ruling that awarded Sagecom damages for loss of use and income. The compensation, initially pegged at $139 million, was updated in May 2025 by Justice Olabisi Akinlade to reflect current values—bringing the total to ₦225.3 billion based on the official exchange rate of ₦1,620 per dollar.
In a statement on Monday, Fidelity Bank’s Divisional Head of Brand and Communications, Mr. Meksley Nwagboh, disputed the reported figure. According to the bank, its computation places the judgment sum at approximately ₦14 billion, referencing a 2005 exchange rate and attributing the majority of liability to G. Cappa Plc, which continued to occupy and collect rent from the disputed property until 2018.
“Even if the 2018 exchange rate supported by the Supreme Court is applied,” the bank said, “the judgment debt will be just under ₦30.7 billion, with contribution from G. Cappa Plc, who delayed delivery of possession.”
Fidelity added that it had filed an application for clarification and recalculation of the actual sum payable, citing legal ambiguities and a recent Supreme Court precedent—Anibaba v. Dana Airlines Ltd (2025)—which it claims supports conversion of foreign judgments based on trial court ruling dates.
The bank reiterated its financial strength, stating: “Fidelity Bank remains one of Nigeria’s most capitalised and profitable financial institutions.” It warned stakeholders against panic, asserting that its 2025 Q1 results show stability.
Fidelity also accused media platform People’s Gazette of publishing “false and malicious” reports contrary to a court-issued restraining order.
On May 9, 2025, the High Court of Lagos State issued an interim injunction in Suit No. LD/1734/2011, restraining Sagecom Concept Ltd and affiliates from disseminating adverse publicity or any publication—online, offline, or through social media—that could damage the bank’s reputation or financial position.
The order, granted by Justice O.A. Akinlade, emphasized the need to “maintain status quo” pending further hearings on motions filed by Fidelity Bank and G. Cappa Plc. The court also cautioned against any commentary that could undermine the bank’s ongoing capital-raising efforts.
Sources say the unprecedented size of the judgment poses serious systemic risks. “This is the biggest crisis the bank has ever faced,” a Fidelity insider told People’s Gazette anonymously. “If the bank survives this, it will be thanks to the goodwill of the small business that won the judgment.”
Despite a 140% stock rally in 2025 and a ₦385 billion pre-tax profit declaration, industry analysts warn that much of Fidelity’s liquidity is tied to loan rollovers, limiting its buffer for shock absorption. The Central Bank of Nigeria (CBN) has yet to publicly respond, but there is speculation it may be forced to intervene to prevent systemic disruption.
Fidelity’s legal team, including prominent Senior Advocates of Nigeria, Kanu Agabi and Onyechi Ikpeazu, have yet to make public statements.
Sagecom, co-founded by Ibadan businessman Bamidele Ogunkanmi and U.S.-based Dakore Miriki, has remained silent following the court’s gag order.
Fidelity Bank is scheduled to appear before the Lagos High Court on May 19, 2025, to contest the final debt calculation.
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