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Supreme Court Judgment: Fidelity Bank Emerges Victorious in ₦30 Billion Case
By prince Benson Davies
The Supreme Court has delivered a landmark judgment in favour of Fidelity Bank in its long-standing legal dispute with Sagecom Concepts Limited. A five-member panel of the apex court, led by Justice Lawal Garba, ruled on Friday that the bank’s appeal against Sagecom Concepts Limited was meritorious.
The dispute, which dates back to a legacy transaction involving the former FSB International Bank, which merged with Fidelity Bank in 2005, centered on a credit facility extended to G. Cappa Plc and subsequent legal proceedings tied to the collateral. The court ruled that the judgment debt be paid in Naira at an annual interest rate of 19.5%, rather than the daily compounded rate previously awarded by the High Court.
The Supreme Court also affirmed that the applicable exchange rate should be that of the date of the High Court judgment, consistent with its earlier decision in Anibaba v. Dana Airlines. The ruling brings definitive closure to a legacy case that has attracted attention across the financial sector for more than two decades.
The judgment marks a significant victory for Fidelity Bank, confirming a significantly lower liability than the ₦225 billion previously speculated in some quarters. The bank’s share price remained stable throughout the case, reflecting investor confidence in its strong governance framework, prudent risk management, and robust financial fundamentals.
Industry experts believe the judgment reinforces Fidelity Bank’s financial strength and commitment to transparent, responsible governance. The bank’s representatives declined to comment on the matter but expressed gratitude to the Supreme Court for bringing clarity and closure to the case.
The ruling is a testament to Fidelity Bank’s commitment to resolving legacy issues and its dedication to maintaining a strong and stable financial position. The bank’s ability to navigate complex legal challenges and emerge victorious is a reflection of its strength and resilience.
