Fidelity Bank Clarifies Supreme Court Judgment Controversy, Estimates N14 Billion Settlement
Fidelity Bank has confirmed a Supreme Court judgment involving G. Cappa and Sagecom Concepts Limited, with the bank estimating the settlement figure to be around N14 billion. The bank’s clarification comes after a report claimed that the Supreme Court had ordered Fidelity Bank to pay N225 billion in damages to Sagecom.
According to Fidelity Bank, the dispute dates back to 2002 when FSB International Bank (acquired by Fidelity Bank in 2005) granted a $3 million loan to G. Cappa Plc. The loan was secured by a property in Ikoyi, which was later sold to Sagecom in 2011. However, G. Cappa allegedly defaulted on the loan repayment and commenced an action against FSB to restrain the bank from selling the property.
The bank claims that Sagecom’s losses were allegedly orchestrated by G. Cappa’s continued possession of the property and collection of rents. Fidelity Bank has applied to the Supreme Court for clarification on the judgment, citing significant ambiguities in calculating the actual financial liability.
The bank estimates that the judgment debt would be around N14 billion based on the 2005 exchange rate or under N30.7 billion using the 2018 exchange rate supported by the Supreme Court. Fidelity Bank has assured its customers, investors, and the general public that it remains a strong and profitable financial institution, with a strong capital position and international operations.
The controversy surrounding the Supreme Court judgment has sparked heated debates, with Fidelity Bank denying claims of being under bankruptcy and emphasizing its ability to discharge its lawful obligations. The bank’s shares are currently priced at N20.05 in the Nigerian stock market, with a month-to-date performance of 0.50%.
