The Supreme Court of Nigeria has ruled that Fidelity Bank Plc must pay N225 billion in damages to Sagecom Concept Limited, an Ibadan-based firm. The judgment stems from a long-standing legal battle over two loans taken by engineering firm G. Cappa Plc from FSB International Bank in the early 2000s.
Fidelity Bank acquired FSB and its liabilities during the 2005 banking sector consolidation. After G. Cappa allegedly defaulted on the loans, Fidelity began seizing assets that had been used as collateral. However, a federal judge ordered the bank to halt asset sales, which Fidelity ignored.
The assets were eventually sold to Sagecom for N350 million, but the firm later discovered a court-issued disclaimer prohibiting the sale. Sagecom sought to recover its funds, citing the injunction, and the case made its way to the Supreme Court.
In a unanimous ruling on April 11, 2025, the Supreme Court justices found in favor of Sagecom, with Justice Adamu Jauro stating that Fidelity’s actions were “tantamount to allowing it to benefit from its own wrong.”
The Lagos High Court had initially ruled in 2011 that Fidelity owed Sagecom compensation for years of lost rental income on the disputed properties. The court recently updated the award to reflect current values, calculating the damages at $139 million or N225.3 billion.
Fidelity Bank is expected to challenge the final calculation during a scheduled court hearing, but insiders say changes are unlikely. The bank’s financial position remains precarious, with doubts about its capacity to withstand the court-ordered payment.
The Central Bank of Nigeria (CBN) may be forced to intervene to prevent the collapse of a Tier-1 bank amid a weak economy. Fidelity Bank has declined to comment on the matter, while the CBN has not made any public statements.
