Value of Fidelity Bank drops by N40.16bn over Supreme court ruling on Cappa, Sagecom Concepts

The value of Fidelity Bank Plc on Monday dropped by N40.16 billion to close at N20.00 per share as investors take-profit over Supreme court ruling on a  longstanding dispute involving G. Cappa Plc and Sagecom Concepts Limited.

As gathered by WESTERN POST, the stock price of Fidelity Bank on Monday dropped by 3.8 per cent or N0.80 per share to close at N20.00 per share from N20.80 per share the stock closed for trading last week.

The lender’s stock reached N21.00 per share last week but the Supreme court ruling on Monday plummet its price on the Nigerian Exchange Limited (NGX).

The lender confirmed its willingness to settle a Supreme Court judgment arising from a longstanding dispute involving G. Cappa and Sagecom Concepts, stemming from a legacy credit transaction originally executed by the now-defunct FSB International Bank.

In a statement issued on Monday by Meksley Nwagboh, the bank’s Divisional Head of Brand and Communications, Fidelity Bank disclosed that its computation of the financial obligation puts the settlement figure at approximately N14 billion.

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, Lagos. 

Meanwhile, after G. Cappa defaulted on the loan, it approached the Federal High Court to restrain the bank from selling the mortgaged property.

 The court, however, ruled in favour of the bank, affirming its right to sell the property, which was subsequently acquired by Sagecom Concepts in 2011.

Although the court upheld the legality of the sale, it declined to grant Sagecom vacant possession, instead directing that the issue be resolved by the Lagos State High Court.
Meanwhile, G. Cappa continued to occupy the property and collect rent.

Sagecom later filed a suit in 2011 at the Lagos State High Court, seeking damages from both G. Cappa and the bank for breach of contract and denial of possession. In 2018, the High Court ruled in favour of Sagecom, awarding damages against both parties.

 The judgment was contested all the way to the Supreme Court, which recently upheld the lower court’s ruling.

Fidelity Bank maintains that G. Cappa’s prolonged possession of the property and rental income collection were responsible for the losses claimed by Sagecom. With the appeal process exhausted, the bank has signaled readiness to settle the case.

However, the bank noted challenges in determining the exact financial liability due to ambiguities in the judgment. It pointed to a recent Supreme Court ruling in Anibaba v Dana Airlines Ltd (January 2025), which clarified that foreign currency debts must be converted to Naira at the exchange rate prevailing on the date of the trial court judgment — in this case, January 30, 2018.

Fidelity Bank reiterated its commitment to resolving the matter within the legal framework and emphasised that its current settlement figure of N14 billion is based on a 2005 exchange rate, the year the cause of action originated. 

The statement read, “Even if the 2018 exchange rate supported by the Supreme Court is applied, the judgment debt will just be under N30.7 billion payable by G.Cappa Plc (who delayed delivery of possession of the apartments from 2005 till June 2018 when possession was eventually delivered) with contribution from the Bank.

“Consequently, the Bank has applied to the Court for a clarification and inquiry into the proper interpretation of the judgment and the computation of the actual quantum properly and lawfully payable by G.Cappa and the Bank. 

“The Court has accordingly ordered Sagecom to maintain status quo pending the determination of pending motions and restrained Sagecom and all persons from publishing any material in the media as the matter is still pending in court.”

Meksley explained that the implication of this order is that the instant publication by People Gazette and any other media platform or persons, contain false information and is wrongful, unlawful and constitute a contempt of court.

“It is unfortunate that the above clear position and injunctive order made by the Court since 7th May 2025 was not adhered to. Rather, this obviously sponsored publication by People Gazette has been orchestrated and syndicated in the media with the aim of embarrassing the bank.

He said Fidelity Bank remains a very strong and profitable financial institution and amongst the most capitalised Bank in Nigeria today with international operations.

According to Meksley, the Bank is under no bankruptcy and has always been in a position to discharge its proper and lawful obligations and wishes to assure its depositors, customers, investors and the general public that the bank is in a strong financial position as shown in its Q1 2025 financial results which is available to the public.

Meanwhile, the Bank is taking all necessary steps to apprehend and prosecute any persons or platform directly or indirectly responsible for this wicked, malicious and sponsored publication aimed at embarrassing the Bank and causing panic to its stakeholders.

Meksley added that a Court Order prohibiting further publications on the matter.

Meanwhile, in Suit No. LD/1734/2011, dated 9 May 2025, the High Court of Lagos State (Lagos Judicial Division) granted an interim injunction in favour of the applicants, G. Cappa Plc and Fidelity Bank Plc, against the judgment-creditor/respondent, Sagecom Concept Limited.

The order restrains Sagecom Concept Limited—and any other person acting on its behalf—from conducting, orchestrating, sponsoring, supporting, granting, or otherwise participating in the promotion or dissemination of any adverse publicity (including, but not limited to, news reports, briefings, commentaries, broadcasts, advertorials, stories, announcements, or publications) in print, electronic, online, or social media, whether within or outside Nigeria.

Pursuant to Section 36 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), Section 23 of the Sheriffs and Civil Processes Act, Orders 2 Rule 2(a), 10 and 14, Order 3 Rule 1, and Order 5 Rule 8 of the Judgment Enforcement Rules 2019, and under the inherent jurisdiction of the Honourable Court.

Upon an ex parte motion filed by the Judgment Debtor/Applicant and supported by the affidavit of Stanley Amuche, Executive Director of the 2nd Judgment Debtor/Applicant, sworn to and filed at the Lagos State High Court Registry on April 29, 2025, and after hearing Kemi Pinheiro SAN for the 2nd Judgment Debtor/Applicant, before Honourable Justice O.A. Akinlade.

The orders as follows: “Leave be and it’s granted for an extension of time within which the 2nd Judgment Debtor/Applicant shall file the instant Motion and seek the prayers therein.
“Leave be and it’s granted to the 2nd Judgment Debtor/Applicant to bring the instant Motion and seek the prayers therein.
“An Order of interim Injunction is hereby granted against the Judgment Creditor/Respondent by itself or any other person from conducting, orchestrating, sponsoring, supporting, granting or otherwise participating in promoting or disseminating any form of adverse publicity including but not limited to news, briefings, commentaries, broadcast, advertorials, stories, announcements, or publications, in print and electronic media including blogging, online and or social media within or outside Nigeria, and/or otherwise taking any steps or actions geared towards sabotaging, undermining, obstructing, hampering or impeding the private placement or other capital raising exercise embarked upon by the Applicant, or causing a run on the Applicant’s business as an international commercial bank or injuring its reputation, goodwill, and going concern status; pending the hearing and determination of the Motion on Notice filed along with the instant Motion Ex Parte.

“Parties are hereby ordered to maintain status quo pending the hearing and determination of the two Motion on Notice respectively dated 29th April, 2025.”