The Supreme Court of Nigeria has affirmed a judgement debt against Fidelity Bank Plc, that could exceed $138.8 million (N222 billion), in favor of Ibadan-based firm, Sagecom Concepts Limited.
The apex court, by this ruling, has upheld the verdicts of both the High Court and the Court of Appeal, concluding that Fidelity Bank acted unlawfully in a disputed property transaction.
The judgment, delivered unanimously by a five-member panel led by Justice Adamu Jauro, on April 11, 2025, found Fidelity Bank and construction firm G. Cappa Plc jointly and severally liable for special damages awarded to Sagecom.
At the heart of this case was a property at 25 Probyn Road, Ikoyi, Lagos, comprising ten flats and two penthouses, that was improperly sold by Fidelity Bank despite a valid court injunction.
The Supreme Court therefore slammed Fidelity Bank for what it called “egregious conduct” and a brazen attempt to “benefit from its own wrong” after the bank ignored a court injunction and sold the property in question despite ongoing litigation.
Delivering the lead judgment, Justice Adamu Jauro emphasized that the bank’s disregard for lawful orders deprived Sagecom of economic benefits for years, violating fundamental principles of equity.
Justice Jummai Hannatu Sankey, in a concurring opinion, added that Fidelity Bank’s actions had inflicted direct financial losses on Sagecom, and the bank must be held accountable.
“Our legal system does not countenance such an outcome,” she said, invoking the legal principle that one should not profit from their own wrong.
The genesis of the dispute dated back to 2005, when G. Cappa defaulted on a $3 million loan secured from Fidelity Bank.
As part of the collateral, the property in Ikoyi was mortgaged.
Following the default, Fidelity appointed Hemaco Commercial Enterprises to sell the property.
Hemaco then sold it to Sagecom for N350 million, financed by First City Monument Bank (FCMB).
However, at the time of the sale, a restraining order had already been issued by the Federal High Court, barring Fidelity from taking any action on the property.
Despite the court order, the sale proceeded, triggering a lengthy legal battle.
Sagecom, unable to take possession of the property, sued both Fidelity and G. Cappa for special damages.
The High Court of Lagos ruled in favor of Sagecom, a decision later affirmed by the Court of Appeal and now upheld by the Supreme Court.
In response to the Supreme Court ruling, Fidelity Bank however released a statement downplaying the financial impact, claiming the actual payable amount is closer to N14 billion (approximately $10 million), based on 2005 exchange rates.
The bank issued a formal statement debunking claims circulating in the media regarding an alleged N225 billion judgment debt that could lead to its bankruptcy.
In the statement signed by its Divisional Head, Brand & Communication, Meksley Nwagboh, the bank said; “Our attention
has been drawn to a story titled:
Fidelity faces bankruptcy as Supreme Court orders banking giant to pay N225 billion damages to Nigerian firm”.
By way of a background, we confirm that the issues leading up to the judgment arose from a legacy transaction between the defunct FSB by International Bank and Sagecom Concepts Limited.
FSB granted a credit facility to G. Cappa Plc in 2002 for the sum of USD3 million.”
The facility was secured with mortgage on a property located in Ikoyi. G. Cappa defaulted on the repayment of the loan and in a bid to prevent FSB from selling the mortgaged property to repay the loan, G. Cappa commenced an action against FSB at the Federal High Court, Lagos seeking inter-alia to restrain the Bank from selling the property.”
“There are significant ambiguities in the judgment,” the bank argued, noting that it has formally applied to the court for clarification and proper interpretation of the ruling.
The bank added that it remains committed to settling its legacy obligations arising from its acquisition of the deduct FSB International Bank but insisted on an accurate computation of liability, which it believes has been overstated due to fluctuating currency rates.
Investigations however reveal that it was Fidelity that engaged lawyers to resist Sagecom’s claims for recovery of its money, and it was/is Fidelity that went on a spree of engagements of different groups of SANs against Sagecom at different stages and levels of the case.
Analysts who spoke on the issue however maintained that “the Supreme Court is our apex court. After it, there’s no recourse to anywhere else in our hierarchical judicial system. After a final judgment, you cannot go from the Supreme Court to the High Court for review. Only the Supreme Court can review the judgment of the Court of Appeal which itself is the first level of review of the judgment/decision of a High Court.”
According to them “the Supreme Court, under our system, is the end of litigation.”
As concerns mounted over the potential systemic implications of the massive judgment, the Central Bank of Nigeria (CBN) quickly moved to calm public nerves.
In a statement signed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank reassured depositors and stakeholders that the Nigerian banking sector remains “resilient, safe, and sound.”
The CBN emphasised its commitment to monitoring all financial institutions under its purview through robust frameworks and risk-based supervision.
“We urge the public to disregard sensational or unverified claims and rely solely on official channels for information about the financial system,” it added.
