Lagos, Nigeria – Fidelity Bank dey struggle to avoid insolvency after Supreme Court ruling wey make dem liable for N225 billion in damages to Sagecom Concept Ltd. Dis ruling na result of plenti years of legal battle wey start from loans wey engineering company G. Cappa Plc take from FSB International Bank for early 2000s.
Di bank don begin talk with lawyers wey dey represent Sagecom to arrange repayment plan, but di urgency wey dey inside di judgement fit affect di bank’s ability to manage di huge liability without fading away. “To be honest, dis na di biggest crisis wey di bank don ever face,” one top official of di bank talk to Peoples Gazette via video conference. “Di obligation too big for us.”
Sagecom, wey be general services company, don suffer plenty losses due to di actions of Fidelity Bank. Di Supreme Court ruling come on April 11, 2025, and e come from a case wey start when G. Cappa no fit fulfill di loan conditions and di bank begin seize dia assets as collateral.
Di stock of Fidelity Bank close at N20.80 per share on Friday, and na wetin dey contribute to di bank’s rising reputation. However, di naira equivalent for di judgement against di bank na N225,285,131,812.38 as of May 16, 2025, using di exchange rate wey dey set for that time. Dis huge sum dey put pressure on di bank, especially as dem don declare N385 billion for profit before tax last year, meaning di judgement fit put dem on edge.
Di Central Bank of Nigeria fit step in to prevent di top bank from collapsing, especially as di economic situation dey fragile. As of Monday morning, no other institution don come forward to take up di liability wey di bank dey face.
Fidelity Bank’s management na led by di first female CEO, Nneka Onyeali-Ikpe, and di bank don dey operate as one of di biggest banks in Nigeria, often placing for di sixth position in terms of asset base. Dem don receive criticism for di aggressive loan practices wey dey often lead to serious disputes with customers. Latest developments, including di recent deaths linked to di bank’s loan policies, don raise serious questions about dem.
Di Supreme Court, in dia unanimous decision, don uphold di damages wey di Lagos high court calculate, after Fidelity Bank violate court orders against selling any of G. Cappa’s assets. Dis judgment fit change di landscape for di bank wey don strive to maintain profitability amidst allegations of misconduct concerning loan agreements.
Fidelity Bank representatives no respond to comments regarding di judgement and di ongoing impacts wey e fit get for di bank operations. Investors and stakeholders dey watch carefully how di bank go handle di situation as more updates dey emerge.
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