Fidelity Bank is facing its biggest financial crisis to date. The Supreme Court of Nigeria has ruled that the bank must pay ₦225.3 billion in damages to Sagecom Concept Limited. Sagecom is an Ibadan-based firm that got caught in a property deal tainted by a long-standing legal issue.

The case began in the early 2000s. Engineering company G. Cappa Plc took two loans from FSB International Bank. One loan was in dollars, and the other in naira. When Fidelity Bank acquired FSB in 2005, it also inherited these loans. After G. Cappa allegedly defaulted, Fidelity moved to seize assets in Ikoyi and Ibadan that were listed as collateral.

Nneka Onyeali-Ikpe — CEO Fidelity Bank

However, a federal judge had issued an order to stop the sale of these properties. Despite this, Fidelity sold some of the assets. One buyer was Sagecom, which paid N350 million for the properties.

Later, Sagecom found out that a 2006 court disclaimer had barred the sale. The company went to court to recover its funds. The case moved through the Lagos High Court, Court of Appeal, and finally reached the Supreme Court. On April 11, 2025, the court ruled in Sagecom’s favor.

Justice Adamu Jauro, who delivered the lead judgment, said: “Allowing the appellant to escape liability as it so desperately seeks would be tantamount to allowing it to benefit from its own wrong.” Justice Jummai Hannatu Sankey added that the bank showed “a deliberate disregard” for court authority and Sagecom’s rights.

Fidelity Bank reported ₦385 billion in pre-tax profits for 2024. Still, insiders say a lot of that is tied up in rolled-over loans. This raises serious questions about the bank’s ability to meet the court’s order.

So far, no financial institution has stepped in to help cover the massive judgment. Some experts believe the Central Bank of Nigeria may have to act to prevent a wider financial crisis. Fidelity plans to challenge the payment amount, but many say the court’s decision is final.

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