Fidelity Bank Plc disclosed potential losses of up to ₦19.8 billion from ongoing litigation, as claims against the lender skyrocketed 3,412% to ₦491.8 billion in 2025 from ₦14 billion the prior year.
The tier-1 bank is defending in 90 cases versus 81 in 2024, while pursuing 16 claims worth ₦5.3 billion.
Directors have asserted that no material financial impact is expected, with full provision already booked against 2025 profit of ₦242 billion—already down 13% on derivative losses.
Supreme Court Catalyst
The primary driver for the increased provision is the April 2025 Supreme Court ruling in Fidelity Bank v. Sagecom Concepts Limited.
The case originated from the defunct FSB International Bank (acquired by Fidelity) and a 2002 credit facility granted to G. Cappa Plc, and subsequent default by G. Cappa Plc.
After G. Cappa defaulted, FSB sold the mortgaged Ikoyi property to Sagecom in 2011. However, G. Cappa remained in possession and continued collecting rent, leading Sagecom to sue for breach of contract and loss of possession.
After over a decade of appeals, the Supreme Court affirmed lower court rulings holding the Bank jointly liable for damages.
-
Financial Impact: The finality of this judgment forced the bank to re-evaluate its “contingent liabilities” and move them into “actual provisions,” directly impacting the 2025 bottom line.
Litigation Risks
Fidelity Bank’s ₦492 billion in exposure—double 2025’s annual profit—raises capital and confidence concerns amid Nigeria’s banking recapitalization.
Despite the astronomical rise in the value of claims—which now totals more than double the bank’s 2025 annual profit—management maintains that these proceedings will not have a “material adverse effect” on the bank’s long-term financial stability.
However, analysts say any legal escalation could pressure the ₦1.087 trillion in Fidelity Bank shareholder funds.
| Metric | 31 Dec 2024 | 31 Dec 2025 | Change (%) |
| Cases as Defendant | 81 | 90 | +11.1% |
| Aggregate Claims Against Bank | ₦14.00 Billion | ₦491.80 Billion | +3,412.9% |
| Estimated Potential Loss | ₦2.27 Billion | ₦19.82 Billion | +773.1% |
| Litigation Provision Made | ₦2.27 Billion | ₦19.82 Billion | +773.1% |
Source: Fidelity Bank
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
