Fidelity Bank Faces N225 Billion Supreme Court Judgment Over Illegal Property Sale: A Deepening Crisis?
In a landmark ruling that has sent shockwaves across Nigeria’s financial sector, the Supreme Court of Nigeria has ordered Fidelity Bank Plc to pay a massive ₦225.3 billion in damages to Sagecom Concept Ltd, an Ibadan-based company, over a controversial property dispute that began nearly two decades ago.
Behind the legal jargon lies a troubling story of corporate misconduct, court defiance, and the lingering cost of impunity.
The Genesis: Fidelity Bank’s Acquisition of FSB and a Trail of Disregard
The case stems from a pair of high-interest loans taken by engineering firm G. Cappa Plc from the now-defunct FSB International Bank in the early 2000s. These loans, valued at $3 million and ₦100 million, became liabilities that Fidelity Bank inherited during Nigeria’s 2005 banking consolidation.
When G. Cappa defaulted, Fidelity seized several collateral assets properties in Ikoyi and Ibadan despite a federal court injunction ordering it not to sell the assets.
Shockingly, Fidelity went ahead and sold some of the properties to Sagecom Concept Ltd for ₦350 million, fully aware of the 2006 legal disclaimer prohibiting the sale. This blatant disregard for judicial authority would later become the crux of the case.
The Verdict: Supreme Court Slams Fidelity’s “Deliberate Disregard”
The case wound through years of litigation, culminating in a unanimous Supreme Court decision on April 11, 2025, siding with Sagecom. In strong language, the justices condemned Fidelity Bank’s actions:
“Allowing the appellant to escape liability… would be tantamount to allowing it to benefit from its own wrong,” ruled Justice Adamu Jauro.
Justice Jummai Hannatu Sankey further described the bank’s behavior as “a deliberate disregard” for both court orders and Sagecom’s legal rights.
This wasn’t just a technical error. This was a calculated move by a top financial institution to override the law, gamble with client trust, and hide behind its status.
A Debt Too Large to Bear?
With the Supreme Court upholding the Lagos High Court’s award updated by Justice Olabisi Akinlade to reflect lost rental income and current property value Fidelity now owes a staggering ₦225.3 billion, calculated using the May 15 exchange rate of ₦1,620 to the dollar.
Despite posting a ₦385 billion pre-tax profit in 2024, much of this revenue reportedly comes from rolled-over loans, raising serious concerns about liquidity. Sources close to the bank admit that repaying this judgment could threaten its solvency.
“This is the biggest crisis the bank has ever faced,” said a Fidelity insider, who requested anonymity.
Structured Repayment or Strategic Delay?
Fidelity has opened discussions with Sagecom’s lawyers to negotiate a structured repayment plan, but critics argue this may be another tactic to delay justice.
With no other banks willing to underwrite the liability, insiders warn that only the intervention of the Central Bank of Nigeria (CBN) might prevent a full-blown financial meltdown. Yet, the CBN has remained silent, despite the potential systemic risk.
The Real Issue: A Pattern of Aggressive Practices?
This case is not an isolated incident. Fidelity Bank has a history of aggressive and sometimes questionable loan recovery practices. In a recent, unrelated incident, a Lagos family accused the bank of indirectly causing the death of a real estate investor entangled in a loan dispute. The bank has denied wrongdoing but blamed “regulatory pressure” for its harsh recovery tactics.
Now led by Nneka Onyeali-Ikpe, the bank’s first female CEO, Fidelity faces a major test of corporate integrity, transparency, and leadership. Will it accept responsibility and make amends, or continue on a path that undermines public confidence?
What This Means for Nigerians
This ruling is a victory for justice, due process, and small businesses in Nigeria. It proves that even powerful financial institutions are not above the law.
For Sagecom, co-founded by Bamidele Ogunkanmi and U.S.-based Dakore Miriki, the judgment is not just financial relief but a vindication of years of perseverance against a Goliath.
But for Fidelity Bank, it’s a wake-up call. The era of corporate impunity may be coming to an end and how it handles this moment will define its legacy.
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