₦airaland Forum

ndept:
The Fidelity Bank Palava:
1. Parties Involved:
☞ Fidelity Bank (absorbed FSB International Bank in 2005)
☞ G. Cappa
☞ Sagecom Concepts

2. What Went Wrong?
☞ G. Cappa borrowed money from FSB International Bank but defaulted. The loan was backed by a property in Ikoyi.

3. What FSB Did
☞ FSB sold the property to Sagecom Concepts after winning a legal dispute allowing the sale, but the Federal High Court did not order G. Cappa to vacate. Instead, the court referred the matter of eviction to the Lagos State High Court. G. Cappa continued occupying the property.

4. The Legal Battle
☞ Sagecom Concepts sued Fidelity Bank (FSB’s successor) over possession of the property. In 2018, the Lagos State High Court ruled in favor of Sagecom. Fidelity Bank challenged this at the Supreme Court.

5. Settlement Issues
Fidelity Bank now agrees to settle Sagecom, but confusion exists over how much Fidelity should pay, due to currency valuation differences:
2005 exchange rate: $130 million = ₦14 billion.
2018 exchange rate (when the trial began): ₦31 billion.
Current exchange rate (~₦1,600/$): ₦220 billion+ (not applicable according to Fidelity Bank).

6. Current Situation:
Based on legal precedent, Fidelity Bank argues that the 2018 rate (₦31bn) is appropriate. The bank has requested that the court clarify the exact applicable amount. The issue remains in court.

7. Fidelity Bank’s numbers (FY 2024)
☞ Total Assets: ₦8.8 trillion
☞ Cash Position: ₦700 billion+
☞ Net Assets: ₦793 billion
☞ Gross Earnings: ₦1.1 trillion
☞ Profit After Tax: ₦278 billion

culled from another platform

So Fidelity sold a property to a firm and court was pending the vacation of the occupiers.

The buyer sues Fidelity.

Court rules in favour of the buyer.

QUESTIONS

1. What delayed the issuance of an order to vacate by the court?
2. If ruling is yet to be made while the matter is still in court, are the buyers allowed to sue?

I am totally in support of the buyers here. I cannot buy your property and still be waiting to possess it for apparently indefinite period.

Nascon , slow but steady . A sure N70+ candidate before the end of the year.

Due Diligence , please.

Tvegas:
LOL same here, i think we need to mail their registrar at this point.

Maybe you should exercise a little patience and watch for today because I'm just getting mine this afternoon.
After the earlier dividend, I didn't know I could still get as much.
However, I edited and moved my kaya to Gtb because of their Chinese transactions bruhaha. Thus escaping with my over 100% to avoid possible Dangote Sugar calamity.

Agbalowomeri:
The jugular of FIDELITY

In other climes these type of issues are resolved carefully and quickly but naija.....
They should not let this FIDELITY issue bring down the whole NGX o!

Locotrader:
I will still keep my NPf like champion.

I dey bullish on these 2 stocks.

Their dividend na another Awoof.Npf will see N4 -N5 in my presence in this 2025.

Octopus II

Picky1:
In other climes these type of issues are resolved carefully and quickly but naija.....
They should not let this FIDELITY issue bring down the whole NGX o!

I want to believe that, it's a matter of the more you look, the less you see....
Those guys understood themselves up there...
The thing is, let Fidelity do them "normal" and we'll hear a twist to the whole story.
Who get Court, who dey judge for the court?

Despite the whole story, over 98m units has exchanged hands so far....
Who are those buying?
Maybe some top ogas needed the stock at cheap price before the ship will sail again...
Let's be watching their drama....
The lower they drag the price, the better the bargain it presents...

In another news, there's huge bids in Wapco with around 6.5m in Cross deals @79......
Cross deal increased to around 12M units...
Any update on Holcim's plan to sell stakes to Huaxin cement?

Lifeafterdeath:
I have not receive my WAPCO interim dividend paid 20/05/2025. I hope I am not the only one left out.

We dey the same boat.

R.E.D.

Today is Wema payment date, Greenwich we are waiting.

KarlTom:
R.E.D.

I know faint hearted people,Traders must have sold off their champion shares within these 2 days of pullback.

We at champion boat are positioned to ride to Km10 without fear.

I love today's trading @ champion

Locotrader:
I know faint hearted people,Traders must have sold off their champion shares within these 2 days of pullback.

We at champion boat are positioned to ride to Km10 without fear.

I love today's trading @ champion

You go wait till after HI.This market is going into pull back or flat till after H1 results as another catalyst

Lifeafterdeath:
I have not receive my WAPCO interim dividend paid 20/05/2025. I hope I am not the only one left out.

this morning i sent a mail to them listing my cscs number and in 30 minutes i got my alert

Shalom428:
Nascon , slow but steady . A sure N70+ candidate before the end of the year.

Due Diligence , please.

after Q2 i am guessing

Streetinvestor2:
You go wait till after HI.This market is going into pull back or flat till after H1 results as another catalyst

I don't believe you.
Maybe we are experiencing Fidelity bank fever.
There is no sign of general pullback in the market now.However some stocks that have done well recently can pullback to drink water.
Dividend season is not yet over.There will be lots of activities in the market till Q2 results begin to show.

My eyes is on ASI index and consumer sector as barometer

Kindly provide their email address you used. Thanks a lot.

unite4real:
this morning i sent a mail to them listing my cscs number and in 30 minutes i got my alert

Now official

https://businessday.ng/companies/article/chamsaccess-makes-continental-debut-in-sierra-leone/

Lifeafterdeath:
Kindly provide their email address you used. Thanks a lot.

registrars@cardinalstone.com

ARADEL. ±
CONOIL. ±
ETERNA. ±
OandO. ±

unite4real:
this morning i sent a mail to them listing my cscs number and in 30 minutes i got my alert

I just got my Wapco dividend too, I sent them a mail few hours ago . It's bad if they need to get a mail before paying.

Tvegas:
I just got my Wapco dividend too, I sent them a mail few hours ago . It's bad if they need to get a mail before paying.

at least they even reacted to the mails swiftly. Not like some that will ask you to wait for more than 3 working days before back and forth feedback commences

.

"Aradel Encounters Four New reservoirs in Ogbele 16, Estimates 120BCF and 22MMbls of Liquids"
https://africaoilgasreport.com/2025/05/in-the-news/aradel-encounters-four-new-reservoirs-in-ogbele-16-estimates-120bcf-and-22mmbls-of-liquids/

KarlTom:
ARADEL. ±
CONOIL. ±
ETERNA. ±
OandO. ±

unite4real:
after Q2 i am guessing

Soon or later but surely a 70+ candidate by end of the year. Declaration of interim dividends will surely make it a solid ₦80+ candidate

DYDD

unite4real:
this morning i sent a mail to them listing my cscs number and in 30 minutes i got my alert

💯

Just to be clear, there was a court injunction prohibiting Fidelity Bank from selling the property but Fidelity Bank sold the property to Sagecom despite the injunction

"Fidelity Bank Plc is currently embroiled in a significant legal and financial dispute following a Supreme Court ruling that mandates the bank to pay ₦225 billion in damages to Sagecom Concepts Limited. This case stems from a legacy transaction involving the defunct FSB International Bank, which Fidelity Bank acquired in 2005. FSB had extended loans totaling $3 million and ₦100 million to G. Cappa Plc, secured by properties in Ikoyi and Ibadan. Upon G. Cappa's default, Fidelity Bank sold one of the mortgaged properties to Sagecom in 2005, despite a court injunction prohibiting such action. This led to prolonged litigation, culminating in the Supreme Court's April 2025 decision, which criticized Fidelity Bank's conduct and awarded damages to Sagecom .
Peoples Gazette Nigeria
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Nairametrics
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Wikipedia
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Peoples Gazette Nigeria
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Leadership News
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Leadership News

In response to concerns about its financial stability, Fidelity Bank has asserted that it remains a strong and profitable institution, with substantial capitalization and international operations. The bank is reportedly engaging in negotiations with Sagecom to structure a feasible repayment plan, aiming to mitigate the financial impact of the judgment .
Peoples Gazette Nigeria
Peoples Gazette Nigeria

Despite the challenges posed by this legal development, Fidelity Bank continues to operate and serve its customers. For more information on the bank's services and updates, you can visit their official website:[b]"

NSEstudent:
So Fidelity sold a property to a firm and court was pending the vacation of the occupiers.

The buyer sues Fidelity.

Court rules in favour of the buyer.

QUESTIONS

1. What delayed the issuance of an order to vacate by the court?
2. If ruling is yet to be made while the matter is still in court, are the buyers allowed to sue?

I am totally in support of the buyers here. I cannot buy your property and still be waiting to possess it for apparently indefinite period.

In a letter dated May 20, 2025, signed by Adeyinka Olumide-Fusika, SAN, of M.A. Banire & Associates/Citipoint (Legal Practitioners), the legal team asserted that Fidelity Bank significantly understated its liabilities by reporting only N2.274 billion as provisions for litigation and claims—despite an enforceable judgment of over $129 million against it as of December 31, 2024.


A legal firestorm has erupted over Fidelity Bank Plc’s 2024 Annual Report, as lawyers representing Sagecom Concept Limited have written a petition to the Central Bank of Nigeria (CBN), accusing the bank of concealing a multi-million-dollar judgment debt under its litigation disclosures.


In a letter dated May 20, 2025, signed by Adeyinka Olumide-Fusika, SAN, of M.A. Banire & Associates/Citipoint (Legal Practitioners), the legal team asserted that Fidelity Bank significantly understated its liabilities by reporting only N2.274 billion as provisions for litigation and claims—despite an enforceable judgment of over $129 million against it as of December 31, 2024.


The petition, addressed to the Director of Banking Supervision at the CBN, calls for immediate regulatory scrutiny of Fidelity Bank’s financial reporting practices, which the lawyers allege were “blatant and deliberate misstatements and misrepresentations.”


Final Supreme Court Judgment Ignored

The contentious litigation, originally filed by Sagecom Concept Limited in 2011 (Suit No. LD/1734/2011), spanned over a decade and culminated in a Supreme Court ruling on April 11, 2025, in Sagecom's favour. The courts consistently ruled in favour of Sagecom at the High Court, Court of Appeal (Appeal No. CA/L/494/2018), and ultimately the Supreme Court (SC/CV/602/2021).
Despite these outcomes, Sagecom’s legal team said Fidelity Bank failed to reflect the liability accurately in its audited accounts. As of December 31, 2024, the judgment debt stood at $129,321,631.73, and due to compounded interest of 19.5% per annum, the amount had risen to $139,362,314.19 by May 20, 2025.


“By so doing, the impression was conveyed to its shareholders and the public at large that its liability on litigations and claims was reasonably within that range,” the lawyers said.


According to the petition, the “misrepresentation” conveyed the impression to shareholders and the public that Fidelity Bank's exposure was modest—just over two billion naira—when in fact it was over 90 times greater.


Alleged Media Manipulation

The letter also accused Fidelity Bank of attempting to control public perception through media spin and the top management of Fidelity Bank Plc of attempting to preemptively shape the narrative before enforcement actions commenced.


True to form, the bank released a follow-up statement titled “Fidelity Bank Clarifies Position on Court Judgment inherited from Defunct FSB International Bank”, portraying the judgment as an inherited liability dating back before Fidelity’s acquisition of FSB International Bank.


However, Sagecom’s lawyers insist the legal process was transparent and rigorous, and the claim that the matter is “inherited” does not absolve Fidelity Bank of legal and financial responsibility.


The CBN had earlier released a statement downplaying the issue, assuring stakeholders and depositors that there was “no cause for alarm” regarding Fidelity Bank’s operations. The CBN described the circulating reports as “misleading,” though it did not directly address the specifics of the Sagecom case.

In response, the lawyers urged the CBN not to “fall to the manipulation” of its supervisee and not to be complicit in what they described as a systemic attempt to mislead regulators and the public.


The legal team wrote: “It is our honest and sincere belief that if the judgment of the High Court which was delivered on 30/01/2018 and had therefore been in existence for seven years prior to the 31/12/2024 issuance of the Annual Report) and that of the Court of Appeal (which was delivered on 7/5/2021 and had therefore been in existence for about three and a half years prior to the 31/12/2024 date of the Annual Report) had been fully, truly, factually disclosed to your Banking Supervision Officers having the remit over your supervisee, it would have been most impossible for the said Annual Report to have been approved or authorised by the Central Bank of Nigeria for issuance and dissemination to the shareholders of your supervisee and the public at large.


“Since the final judgment, which was that of the Supreme Court, was delivered in the matter on the 11th of April 2025, no serious step has been commenced by us to even execute the judgment.”


They also offered to engage directly with the CBN prior to initiating enforcement actions, indicating a willingness to cooperate in a “reasonable manner” that acknowledges the CBN’s supervisory role.


In addition to the letter sent to the Central Bank of Nigeria, Sagecom Concept Limited’s legal representatives also informed the Managing Director/CEO of the Nigeria Deposit Insurance Corporation (NDIC) about the ongoing litigation and the substantial judgment debt against Fidelity Bank Plc.

The lawyers sent a separate letter dated May 20, 2025, copying the NDIC in the communication with the CBN. The letter, titled ‘RE: SAGECOM CONCEPT LIMITED VS FIDELITY BANK PLC & ANOR (JUDGMENTS IN SUIT NO LD/1734/2011; APPEAL NO CA/L/494/2018; SUPREME COURT NO SC/CV/602/2021),’ formally notified the deposit insurer of the significant financial liability that Fidelity Bank faces as its insured institution.


The letter stated: “As counsel for the judgment-creditor, Sagecom Concepts Limited, in the matter in the above caption, in which a quite significant judgment-sum is now outstanding against your insured institution, Fidelity Bank Plc, we have deemed it fit to put you in copy of the attached letter to the Central bank of Nigeria respecting the matter.”


Background

The dispute dates back to 2002 when FSB International Bank granted a $3 million loan to G. Cappa Plc, secured by a mortgage on a property in Ikoyi.


Fidelity Bank Plc is facing one of the biggest legal and financial crises in its history following a Supreme Court order mandating it to pay ₦225.3 billion in damages to Ibadan-based firm Sagecom Concept Limited.


The court ruling stems from a longstanding dispute over two loans originally granted by FSB International Bank to engineering company G. Cappa Plc in the early 2000s. Fidelity Bank assumed FSB’s liabilities during the 2005 banking consolidation. After a loan default, Fidelity seized collateral properties in Ikoyi and Ibadan—despite a federal court injunction—and later sold some of them to Sagecom for ₦350 million.


Sagecom later found a 2006 court disclaimer prohibiting the sale and sued to recover its funds, citing illegal asset transfers. After years of litigation, the Supreme Court ruled on April 11, 2025, in Sagecom’s favor, with Justice Adamu Jauro stating that Fidelity should not “benefit from its own wrong.” Justice Jummai Sankey labeled the bank’s actions a “deliberate disregard” for the courts.

The Lagos High Court initially awarded damages in 2011. That award was recently updated by Justice Olabisi Akinlade to reflect current economic realities: $139 million, or ₦225.3 billion using the May 15 exchange rate of ₦1,620 to $1. Fidelity is expected to contest the naira calculation at a May 19 hearing, though legal insiders say it’s unlikely to succeed.


The Lagos court awarded significant special damages in favour of Sagecom Nigeria Limited, the claimant in a protracted legal battle over a multi-unit residential property comprising several flats and two penthouses at No. 25, Probyn Road, Ikoyi, Lagos.

In its ruling, the court directed the second defendant, G. Cappa Plc, and the first defendant, Fidelity Bank Plc, to jointly and severally pay compensation to Sagecom for lost rental income.


The awarded amounts were determined based on the annual rental value of each unit, denominated in U.S. dollars or its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) exchange rate at the time of payment.


The court’s assessment of damages took into account the specific rental values and the dates on which the losses were deemed to have commenced—ranging from November 2005 to December 2006 for different units. Up until June 20, 2011, liability was assigned solely to G. Cappa Plc.

However, from June 21, 2011 onward, both G. Cappa and Fidelity Bank Plc were held jointly and severally responsible. That liability remains in place until Sagecom either regains possession of the property or the original 25-year lease—granted to G. Cappa by NEPA in January 2001—expires, whichever comes first.


The annual rental values for the units ranged from $30,000 to $67,500 each. Specifically, Flat 5 was valued at $30,000 per year; Flats 2 and 8 at $33,750; Flat 9 at $56,250; Flats 1, 3, 4, and 6 at $60,000; Flats 7 and 10 at $52,500; and both penthouses at $67,500 each. These amounts are payable in U.S. dollars or their Naira equivalent, calculated at the Central Bank of Nigeria’s official exchange rate on the payment date.


The court’s ruling compensates Sagecom for the extended period during which it was denied rental income following the 2005 purchase of the property—a transaction later deemed to have breached an existing court injunction.


Damages are calculated from each unit’s respective start date until Sagecom either regains possession or the 25-year lease, which began on January 1, 2001, expires—whichever occurs first.
Additionally, the court ordered that interest on the awarded annual rental values accrues at a daily compounded rate of 19.5% per annum, starting from each annual due date until full payment is made.


Bank executives are now negotiating a structured repayment plan with Sagecom’s legal team. However, sources close to the matter say the Supreme Court’s call for urgency may limit how much the bank can spread the payments.


“This is the biggest crisis the bank has ever faced,” a senior official said, “If Fidelity survives this, it will be because Sagecom shows leniency.”


Despite reporting ₦385 billion in pre-tax profits for 2024 and seeing a 140% surge in share price this year (closing at ₦20.80 per share on Friday), most of Fidelity’s earnings are tied to rolled-over loans, raising doubts about its liquidity.

No financial institutions have stepped forward to underwrite the judgment as of Monday. Experts warn the Central Bank of Nigeria (CBN) may need to intervene to prevent systemic risks.

Fidelity Bank and its legal team—including Senior Advocates Kanu Agabi and Onyechi Ikpeazu—have declined public comment. Meanwhile, the CBN has remained silent.

Fidelity Bank, Nigeria’s sixth-largest by assets, is currently led by CEO Nneka Onyeali-Ikpe. The bank has faced prior criticism for aggressive loan recovery tactics, including a recent case where it was blamed for a debtor’s death.

While the outcome of the payment negotiations remains uncertain, one thing is clear: the repercussions of this judgment will reverberate through Nigeria’s financial sector for months to come.

https://saharareporters.com/2025/05/23/breaking-sagecom-petitions-cbn-accuses-fidelity-bank-lying-about-financial-status

In view of the hullabaloo about Fidelity bank's MD buying shares of the bank, here is a video explaining the difference between insider dealing (which is legal) and insider trading (which is illegal).


https://www.youtube.com/watch?v=6aCMMHaG6_Y

NSEstudent:
So Fidelity sold a property to a firm and court was pending the vacation of the occupiers.

The buyer sues Fidelity.

Court rules in favour of the buyer.

QUESTIONS

1. What delayed the issuance of an order to vacate by the court?
2. If ruling is yet to be made while the matter is still in court, are the buyers allowed to sue?

I am totally in support of the buyers here. I cannot buy your property and still be waiting to possess it for apparently indefinite period.

Fidelity should pay the court judgement, collect the proper rent from GCapper from the day of foreclosure, to reduce their loss. Thereafter throw GCapper out of the building and hand
it over to the buyer

Is it not simple?

Pls elders I want enlightenment

Is it only if I hold my stock for long I will be entitled to dividends or even when I hold for a short period of time

Then when do company normally pay out dividends


If I'm not getting dividends what can I do

Pls someone come to my rescue...

LOL. To be fair, when you have 25% product-level gross margins, the only way out is to grow bigger without meaningfully increasing your administrative costs.

But the waka to Sierra Leone long sha: New office, new staff, higher costs. And your thesis has evolved---yet again.

But neva say neva!

Locotrader:
Now official

https://businessday.ng/companies/article/chamsaccess-makes-continental-debut-in-sierra-leone/