Fidelity Bank on Monday confirmed a subsisting Supreme Court judgment involving G. Cappa and Sagecom Concepts Limited, adding that its computation puts the settlement figure at N14 billion.
The bank disclosed this in a statement on Monday, stating that the issues leading up to the judgment arose from a legacy transaction between the defunct FSB International Bank and Sagecom Concepts Limited.
The bank clarified, however, that a sponsored publication of the apex court judgment has allegedly been orchestrated and syndicated in the media with the aim of embarrassing the bank.
Legal Developments Account by Fidelity Bank
- In the bank’s statement signed by its Divisional Head, Brand & Communications, Meksley Nwagboh, it responded to a report claiming that the Supreme Court had ordered the financial institution to pay N225 billion in damages to the Nigerian firm.
- Clarifying the development, the bank confirmed the legal matter, highlighting that FSB had granted a credit facility to G. Cappa Plc in 2002 for the sum of USD 3 million.
“The facility was secured with a mortgage on a property located in Ikoyi,” it added.
- The official explained that G. Cappa allegedly defaulted on the repayment of the loan and, in a bid to prevent FSB from selling the mortgaged property to repay the loan, commenced an action against FSB at the Federal High Court, Lagos, seeking, among other things, to restrain the bank from selling the property.
“The Federal High Court, in its judgment, ruled that the bank, as legal mortgagor, rightfully sold the leased interest in the property to Sagecom in 2011.
“The court, however, declined to order vacant possession of the property and directed the issue of vacant possession to the Lagos State High Court,” the official added, alleging that in the meantime, G. Cappa remained in possession of the property and continued collecting rents from it.
- According to the official, Sagecom then instituted an action against the bank and G. Cappa at the Lagos State High Court in 2011, seeking damages against the bank for breach of contract and for possession of the property.
“Sagecom’s claim against the bank was essentially for liquidated damages calculated as rentals on the several component apartments in the property, plus interest on the same over different time frames,” the official stated.
- The official added that in 2018, the Lagos High Court awarded judgment in favour of Sagecom against G. Cappa and the bank, which judgment was challenged up to the Supreme Court.
Fidelity Bank’s Position on Apex Court Verdict
According to the official, the bank is convinced that by remaining in possession of the property and continuing to collect rents from it, G. Cappa allegedly orchestrated all the losses suffered by Sagecom.
- Nwagboh maintained, however, that having exhausted the appeal process, the bank is willing to settle the obligation.
“Unfortunately, there are significant ambiguities in the judgment, resulting in difficulties in calculating the actual financial liability to G. Cappa and the bank, which is about N14 billion from our computation based on the exchange rate as of 2005, when the incident and cause of action arose.
“Meanwhile, the Supreme Court in the case of Anibaba v. Dana Airlines Limited, delivered in January 2025, has clarified that foreign currency judgment debt must be converted to Naira at the exchange rate obtainable at the date of judgment of the trial court, which in this case was 30 January 2018,” the official added.
- The official claimed that even if the 2018 exchange rate supported by the Supreme Court is applied, “the judgment debt will be just under N30.7 billion, payable to G. Cappa Plc (who delayed delivery of possession of the apartments from 2005 till June 2018, when possession was eventually delivered), with contribution from the bank.”
- The bank said it has applied to the apex court for clarification and an inquiry into the proper interpretation of the judgment and the computation of the actual quantum properly and lawfully payable by G. Cappa and the bank.
“The court has accordingly ordered Sagecom to maintain the status quo pending the determination of pending motions and restrained Sagecom and all persons from publishing any material in the media as the matter is still pending in court,” the bank added.
- The financial institution stressed that it is unfortunate that a clear position and injunctive order made by the court since 7 May 2025 have not been adhered to by relevant stakeholders.
Fidelity Bank assures customers of strong financial position
Fidelity Bank maintained that it remains a very strong and profitable financial institution and is among the most capitalized banks in Nigeria today, with international operations.
The bank denied being under bankruptcy, adding that it has always been in a position to discharge its proper and lawful obligations, and wishes to assure its depositors, customers, investors, and the general public that the bank is in a strong financial position, as shown in its Q1 2025 financial results, which are available to the public.
Currently, shares of the company are priced at N20.05 in the Nigerian stock market as of market close on 19th May 2025, with a month-to-date performance of 0.50%.
