Fidelity Bank Refutes Bankruptcy Claims, Clarifies Supreme Court Judgment Linked to Legacy FSB Transaction

Fidelity Bank Plc has firmly denied media reports alleging it faces bankruptcy due to a Supreme Court ruling related to a longstanding legal dispute, describing the coverage as false, malicious, and contemptuous of court.

In a press release issued on Sunday, the bank clarified that the Supreme Court judgment in question stems from a 2002 credit facility granted by the now-defunct FSB International Bank—acquired by Fidelity—to G. Cappa Plc.

The facility was secured by a property in Ikoyi, Lagos. Following loan default and a chain of litigation involving Sagecom Concepts Limited, a dispute emerged over damages and rental claims after Sagecom was awarded possession rights.

According to Fidelity Bank, the actual liability from the case—based on exchange rate guidance issued by the Supreme Court in a related 2025 ruling (Anibaba v Dana Airlines)—would amount to approximately ₦14 billion using the 2005 exchange rate or under ₦30.7 billion using the 2018 rate.

The bank stated that reports citing a ₦225 billion judgment are unfounded and based on erroneous interpretations.

The bank has formally approached the courts seeking clarification on the computation of the damages and secured a court order preventing further publication of misleading information. “The publication by People’s Gazette is a clear contempt of court,” the bank stated, adding that those responsible would be prosecuted.

Fidelity Bank also reassured stakeholders of its financial strength, citing its Q1 2025 financial results and status as one of Nigeria’s most capitalised and profitable banks with international operations.

“Fidelity Bank remains a very strong and profitable financial institution… under no bankruptcy,” said Meksley Nwagboh, Divisional Head, Brand & Communications.

The bank stressed its commitment to fulfilling all lawful obligations while protecting its reputation from orchestrated attempts to incite panic or damage public trust.