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A five-man panel of the Supreme Court, led by Justice Lawal Garba, has ruled in favour of Fidelity Bank in an appeal it filed against Sagecom Concepts Limited.
The initial reports of the Supreme Court ruling in the long-running dispute with Sagecom Concepts Limited caused a major stir and stock dip, with some initial estimates suggesting the judgment debt could be as high as N225 billion.
The ruling delivered on Friday brought definitive closure to a legacy case that has drawn significant attention across the financial sector for more than two decades.
Fidelity Bank had, in a motion dated October 8, 2025, sought clarification from the Supreme Court, asking for a consequential order that the judgment debt be paid in Naira.
Details of the Supreme Court Ruling
The case originated from a legacy transaction in 2002 involving the defunct FSB International Bank (acquired by Fidelity Bank) and a loan granted to G. Cappa Plc, secured by an Ikoyi property later sold to Sagecom Concepts Limited.
The core issue was Sagecom’s inability to take possession due to G. Cappa’s continued occupation and rent collection, leading to a claim for damages against the Bank for breach of contract.
Viral reports placed the judgment debt at N225 billion, which the bank vehemently denied, assuring investors of its solvency.
The Bank argued that the debt, based on the correct exchange rate for foreign currency judgment debts (which is the rate at the date of the trial court judgment, 2018), should be significantly lower, placing its maximum contribution at around N30.7$ billion (payable jointly with G. Cappa).
The Supreme Court’s most recent decision appears to have validated the bank’s interpretation, effectively: affirming the liability for damages against the Bank, but revising the calculation to be in line with the established legal precedent (like the Anibaba v Dana Airlines case).
The ruling essentially substitutes the initial exaggerated figure with a calculated amount, confirming the debt is closer to the N30 billion range, rather than the crippling N225 billion initially reported.
This outcome significantly reduces the material impact on Fidelity Bank’s balance sheet and should reassure the market of the bank’s strong financial position.
Fidelity Bank sets aside N34.8bn as litigation provision
Fidelity Bank saw a 1,433% jump in provision for litigation to N34.8 billion as at June 2025, up from N2.27 billion as at December 2024, largely due to the Sagecom judgement against it as well as other high-stakes legal disputes.
Fidelity Bank says it is currently in discussions with Sagecom for an amicable determination and settlement of the judgment sum.
The N34.8 billion provision was recognized in the account to take care of the bank’s obligation.
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