Supreme Court Orders Fidelity Bank to Pay ₦225bn to Ibadan Firm, Over Botched Property Deal
Fidelity Bank Plc is facing one of the biggest legal and financial crises in its history following a Supreme Court order mandating it to pay ₦225.3 billion in damages to Ibadan-based firm Sagecom Concept Limited.
The court ruling stems from a longstanding dispute over two loans originally granted by FSB International Bank to engineering company G. Cappa Plc in the early 2000s. Fidelity Bank assumed FSB’s liabilities during the 2005 banking consolidation. After a loan default, Fidelity seized collateral properties in Ikoyi and Ibadan—despite a federal court injunction—and later sold some of them to Sagecom for ₦350 million.
Sagecom later found a 2006 court disclaimer prohibiting the sale and sued to recover its funds, citing illegal asset transfers. After years of litigation, the Supreme Court ruled on April 11, 2025, in Sagecom’s favor, with Justice Adamu Jauro stating that Fidelity should not “benefit from its own wrong.” Justice Jummai Sankey labeled the bank’s actions a “deliberate disregard” for the courts.
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The Lagos High Court initially awarded damages in 2011. That award was recently updated by Justice Olabisi Akinlade to reflect current economic realities: $139 million, or ₦225.3 billion using the May 15 exchange rate of ₦1,620 to $1. Fidelity is expected to contest the naira calculation at a May 19 hearing, though legal insiders say it’s unlikely to succeed.
Bank executives are now negotiating a structured repayment plan with Sagecom’s legal team. However, sources close to the matter say the Supreme Court’s call for urgency may limit how much the bank can spread the payments.
“This is the biggest crisis the bank has ever faced,” a senior official told People’s Gazette. “If Fidelity survives this, it will be because Sagecom shows leniency.”
Despite reporting ₦385 billion in pre-tax profits for 2024 and seeing a 140% surge in share price this year (closing at ₦20.80 per share on Friday), most of Fidelity’s earnings are tied to rolled-over loans, raising doubts about its liquidity.
No financial institutions have stepped forward to underwrite the judgment as of Monday. Experts warn the Central Bank of Nigeria (CBN) may need to intervene to prevent systemic risks.
Fidelity Bank and its legal team—including Senior Advocates Kanu Agabi and Onyechi Ikpeazu—have declined public comment. Meanwhile, the CBN has remained silent.
Fidelity Bank, Nigeria’s sixth-largest by assets, is currently led by CEO Nneka Onyeali-Ikpe. The bank has faced prior criticism for aggressive loan recovery tactics, including a recent case where it was blamed for a debtor’s death.
While the outcome of the payment negotiations remains uncertain, one thing is clear: the repercussions of this judgment will reverberate through Nigeria’s financial sector for months to come.
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