Fidelity vs. Fiction: Bank Reacts to N225 Billion Judgment Rumour
Last weekend, headlines blared that Fidelity Bank was on the brink of bankruptcy, facing a ₦225 billion Supreme Court judgment.
But today, the bank fired back.
In a detailed press statement dated May 19, 2025, Fidelity Bank clarified the facts, figures, and fiction surrounding the matter and called out media houses for “malicious misrepresentation.”
Here’s what actually happened, and what it means for Nigeria’s banking sector.
The Backstory: A Legacy Dispute from 2002
The case in question originates from a $3 million loan FSB International Bank (now part of Fidelity Bank) gave to G. Cappa Plc in 2002. The loan was secured against a property in Ikoyi, Lagos.
- When G. Cappa defaulted, FSB sold the mortgaged lease interest to Sagecom Concepts Ltd
- But G. Cappa challenged the sale in court and refused to vacate the property for years while still collecting rent
This began a 15+ year legal saga between G. Cappa, Sagecom, and the successor bank Fidelity.
Supreme Court Ruling: Real, But Misrepresented
- The Supreme Court upheld a Lagos High Court judgment awarding damages to Sagecom Concepts Ltd
- The case involved rental losses from 2005 to 2018, not direct breach of contract by Fidelity Bank alone
- Fidelity and G. Cappa are jointly liable but the bank strongly disputes the ₦225 billion figure
What Does Fidelity Actually Owe?
Fidelity Bank says:
- Based on 2005 exchange rates, their liability is closer to ₦14 billion
- Even using the 2018 exchange rate (which the Supreme Court recently reaffirmed in another case), the entire award should not exceed ₦30.7 billion mostly payable by G. Cappa Plc
They’ve asked the court to clarify and properly interpret the actual amount owed.
On Bankruptcy Rumors: Fidelity Responds Strongly
Fidelity dismissed the bankruptcy claims as:
“Malicious, false, and contempt of court.”
They claim the People’s Gazette report violated an injunction issued on May 7, 2025, which barred public commentary on the matter.
The bank reaffirmed its financial strength:
- One of Nigeria’s most capitalised institutions
- Released strong Q1 2025 results
- Operations running locally and internationally without stress
Financial Juggernut Insight
Don’t confuse a legacy lawsuit with insolvency.
Legal setbacks happen even for big banks. But misreporting can cause public panic, stock pressure, and reputational damage.
Fidelity is playing legal defense not liquidation. And bank customers and investors should read court filings, not just headlines.