Legal expenses incurred by Fidelity Bank Plc surged to ₦30.05 billion in the second quarter (Q2) of this year, compared with ₦701 million the bank incurred in the same period in 2024, representing a 4,187.16 per cent rise.
A review of the bank’s audited financial statements for the period ended June 30, 2025, released on Thursday, November 13, has shown.
According to the statements, Fidelity Bank is currently involved in 81 court cases as a defendant. The court cases rose from 77 on December 31, 2024.
A tier-2 Nigerian bank, Fidelity Bank, is also currently involved in nine cases as plaintiff. This was the same number of court cases it was involved in as of December 2024.
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The aggregate value of claims filed against the bank is estimated at ₦239.9 billion as of June 30, compared to ₦14 billion as of December 31, 2024. This indicates a value of additional ₦225.9 billion claims against the bank in the six months under review. As a plaintiff, the bank instituted ₦5 billion in claims plus counterclaims in the nine cases as of June 30.
According to Fidelity Bank, based on the advice of its legal team and the case facts, it had estimated a potential loss of ₦31.6 billion. This shows a significant rise compared to the ₦2.27 billion it approximated as of December 31, 2024.
Upon conclusion of the cases, the bank said it had made a provision of ₦34.8 billion for the potential loss.
It explained that the surge in the provision is due to a Supreme Court judgement delivered in April 2025 in the matter of Fidelity Bank v. Sagecom Concepts Limited & Anor.
“The Sagecom Litigation arose from a legacy transaction between the defunct FSB International Bank and Sagecom Concepts Limited. FSB granted a credit facility to G. Cappa Plc in 2002.
The facility was secured with a mortgage on a property located in Ikoyi.
G. Cappa defaulted on the repayment of the loan, and, in a bid to prevent FSB from selling the mortgaged property, G. Cappa commenced an action against FSB at the Federal High Court, Lagos, in 2005, seeking to restrain the bank from selling the property.
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“The Federal High Court, in its judgement of 2011, ruled that the Bank, as legal mortgagor, rightfully sold the property to Sagecom but referred the issue of possession to the State High Court. In the meantime, G. Cappa remained in possession of the property and kept collecting rents therefrom,” Fidelity Bank said.
It explained further that Sagecom then instituted an action against the bank and G. Cappa at the Lagos State High Court in 2011, seeking damages against G. Cappa and the bank for breach of contract and for possession of the property.
In 2018, the Lagos High Court awarded judgement in favour of Sagecom against G. Cappa and the bank.
Although the bank appealed against the judgement to the Court of Appeal and further to the Supreme Court, contending that any loss due to Sagecom was caused by G. Cappa and that G. Cappa alone should be responsible for any damages due to Sagecom, in April 2025, the Supreme Court affirmed the decision of the High Court and the Court of Appeal.
Fidelity Bank hinted that it is currently in discussions with Sagecom for an amicable determination and settlement of the judgement sum.
“As at the reporting date, provision has been recognised in the account to take care of the bank’s obligation,” it disclosed.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
