Fidelity Bank Plc has said it remains financially stable even as it clarified its position regarding a court judgment recently reported in the media.
He described claims of bankruptcy as false, misleading, and contemptuous of an existing court order.
In a statement signed by Meksley Nwagboh, Divisional Head, Brand & Communication, the Bank explained that the issue stemmed from a legacy matter involving the now-defunct FSB International Bank, which merged with Fidelity years ago. The transaction in question dates back to 2002 when FSB granted a $3 million facility to G. Cappa Plc, secured by a mortgage on a property in Ikoyi.
G. Cappa defaulted on the loan, prompting FSB to enforce its right as a legal mortgagor by selling the property to Sagecom Concepts Limited in 2011. Although the Federal High Court affirmed the validity of the sale, it deferred the issue of vacant possession to the Lagos State High Court. In the interim, G. Cappa continued to occupy the property and collect rental income from it.
Sagecom subsequently filed a suit in 2011 against both G. Cappa and the Bank, seeking possession and damages. In 2018, the Lagos High Court ruled in Sagecom’s favour, awarding liquidated damages based on rental values. Fidelity Bank and G. Cappa appealed the decision, but the Supreme Court upheld the judgment. “However, having exhausted the appeal process, the Bank is willing to settle the obligation,” the statement said.
“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 2005 exchange rate.”
The Bank emphasized that the Supreme Court, in a recent judgment (Anibaba v Dana Airlines Limited, January 2025), clarified that foreign currency judgment debts should be converted at the trial court’s judgment date rate – in this case, January 30, 2018. Applying that rate, the total potential exposure would be under N30.7 billion, primarily attributed to G. Cappa Plc, with a contributory portion from the Bank.
To address the ambiguities, Fidelity Bank has approached the court for clarification and proper interpretation of the judgment. Importantly, the court has ordered all parties to maintain the status quo and restrained Sagecom from publishing or disseminating any material on the matter pending the court’s decision.
“The implication of this order is that the publication by Peoples Gazette and any other media platforms contain false information and constitute contempt of court,” the statement added.
Fidelity Bank condemned what it called a “malicious and sponsored publication” aimed at creating panic and embarrassing the institution, affirming that it remains one of Nigeria’s most capitalized and profitable banks with international operations.
“Fidelity Bank is not facing bankruptcy,” Nwagboh emphasized. “The Bank is in a strong financial position and has always met its obligations. We reassure our depositors, customers, investors, and the general public of our financial strength, as reflected in our Q1 2025 results available to the public.”
The Bank has vowed to pursue legal action against those behind the defamatory reports and reiterated its commitment to transparency, due process, and stakeholder confidence.