By Ikechukwu Amaechi
Fidelity Bank Plc has dismissed as unfounded the rumours circulating that it is on the verge of bankruptcy following a Supreme Court judgment linked to a legacy $3 million credit facility granted by the defunct FSB International Bank in 2002.
The bank issued a clarification on Monday, assuring the general public, depositors, and stakeholders that it remains financially strong despite the court judgment.
In a statement by its Divisional Head, Brand & Communications, Meksley Nwagboh, Fidelity Bank urged calm, stating that it is currently seeking judicial clarification on the accurate computation of the judgment sum.
“By way of background, we confirm that the issues leading up to the judgment arose from a legacy transaction between the defunct FSB International Bank and Sagecom Concepts Limited,” the bank said.
According to the statement, FSB, a legacy bank acquired by Fidelity Bank, granted a credit facility to G. Cappa Plc in 2002 for the sum of $3 million. The facility was secured with a mortgage on a property located in Ikoyi, Lagos.
However, when G. Cappa defaulted, the construction company swiftly commenced legal proceedings against FSB at the Federal High Court, Lagos, in a bid to prevent the bank from selling the mortgaged property to recover the loan.
Fidelity Bank’s press statement noted that the initial lawsuit was aimed at restraining FSB from selling the property of the alleged loan defaulter.
The Federal High Court ruled that the bank, as legal mortgagor, rightfully sold the leased interest in the property to Sagecom in 2011. However, it declined to order vacant possession of the property and referred the issue to the Lagos State High Court.
Meanwhile, G. Cappa remained in possession of the property and continued collecting rents.
Sagecom’s claim against the bank was primarily for liquidated damages. In 2018, the Lagos High Court ruled in favour of Sagecom against G. Cappa, even though it refused to order vacant possession. This judgment was challenged at the Supreme Court by Fidelity Bank for final adjudication.
But, as with the High Court ruling, the Supreme Court also ruled in Sagecom’s favour.
Fidelity Bank maintains that by remaining in possession of the property and collecting rents, G. Cappa was responsible for the losses suffered by Sagecom.
Nonetheless, the bank noted that, having exhausted the appeal process, it is open to settling the obligation.
In fact, investigations by TheNiche indicate that both Fidelity Bank and Sagecom are already in discussions regarding the structured payment of the judgment debt over a mutually agreed period.
This court ruling is what detractors of the bank have exploited in a demarketing campaign — the root of the bankruptcy rumour.
In debunking this insinuation, the bank reassured depositors and investors of its soundness as a going concern, emphasising that it faces no solvency or liquidity issues.
The bank reiterated that, regardless of the Supreme Court judgment, it is not under threat of bankruptcy or liquidation.
This is evident. Fidelity Bank has consistently posted strong financial results, with significant growth in key metrics such as profit before tax (PBT), gross earnings, and net interest income. The bank is also well-capitalised, maintaining a capital adequacy ratio (CAR) well above the regulatory minimum, reflecting a robust financial foundation.
Moreover, it is expanding its presence both locally and internationally, with a focus on digital banking and customer-centric services. It has received multiple awards for performance in corporate banking, SME support, and digital innovation, underscoring its strength and leadership in the financial sector.
It is, therefore, unsurprising that the bank has garnered strong investor confidence, leading to oversubscriptions in equity capital raises and a consistent increase in share prices.
The Central Bank of Nigeria (CBN) has also addressed the matter, dismissing the bankruptcy narrative as misleading.
In a statement on Monday night, the apex bank noted that it had become aware of publications and social media reports containing “misleading information regarding the operations of a regulated financial institution.”
The statement, signed by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications, affirmed that the CBN “continues to monitor all financial institutions under its regulatory purview and maintains robust frameworks for early warning signals and risk-based supervision. These mechanisms ensure that any emerging issues are promptly addressed to protect the integrity of the financial system.”
The CBN urged the public to “disregard sensational or unverified claims and rely solely on official channels for information about the financial system.”
The statement, titled “CBN Reassures Public on Banking Sector Stability,” reads in part: “The attention of the Central Bank of Nigeria (CBN) has been drawn to certain publications and social media reports containing misleading information regarding the operations of a regulated financial institution.
The CBN wishes to categorically reassure the public, depositors, and stakeholders that the Nigerian banking sector remains resilient, safe, and sound. Like all other regulated institutions, the institution referenced in these reports is held to stringent regulatory requirements, and there is no cause for concern regarding the safety of depositors’ funds.”
“We urge the public to disregard sensational or unverified claims and rely solely on official channels for information about the financial system.”
“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system.”
Some financial experts who spoke to TheNiche described the bankruptcy story as a fabrication by those “unnerved by the unprecedented growth of Fidelity Bank, particularly under the leadership of Nneka Onyeali-Ikpe.”
“How can a bank, unarguably one of Nigeria’s leading Tier-1 institutions, a bank that just posted remarkable results for the first quarter of 2025, recording a PBT of N105.8 billion (a 167.8% increase from N39.5 billion in Q1 2024), suddenly go bust?” asked financial analyst Mr. Olamilekan Johnson.
“It’s all an attempt by unscrupulous individuals to demarket the bank. This isn’t the first time, and I’m afraid it won’t be the last. But for the sake of the country’s financial stability, it needs to stop.”
Johnson’s concerns are valid. Following the revocation of Heritage Bank Plc’s licence by the CBN on June 3, 2024, a similar malicious campaign was launched against Fidelity Bank, along with Wema Bank, Polaris Bank, and Unity Bank — insinuating they might follow Heritage’s path.
Ironically, this rumour surfaced just a week after Fidelity Bank finalised documentation to raise N127.1 billion via a public offer and rights issue, aimed at boosting its capital base in line with the CBN’s recapitalisation directive.
Could this bankruptcy hoax be a panic response by naysayers unable to digest the bank’s strong fundamentals and stellar performance, as evidenced by its recently released financials?
The bank’s unaudited financial statements, published on the Nigerian Exchange (NGX) on April 30, 2025, showed gross earnings rose to N315.4 billion, on a 64.2% year-on-year increase from N192.1 billion in the same period last year.
Interest income growth was driven by a 38.6% year-on-year (7.4% year-to-date) expansion in earning assets, while the rise in non-interest revenue stemmed from FX income, trade, commissions, and increased customer transactions.
Other highlights of the report showed significant improvements:
- Total deposits grew by 11.1% year-to-date to N6.6 trillion (from N5.9 trillion in December 2024),
- Low-cost deposits rose by 10.6% year-to-date to N6.1 trillion, representing 92.2% of total customer deposits,
- Local currency deposits increased by 2.0%, while
- Foreign currency deposits jumped by 21.4%, from $1.9 billion in December 2024 to $2.3 billion.
Beginning the year with such positive momentum reinforces our commitment to supporting the growth of individuals and businesses while enhancing our financial sustainability. As we proceed through the year, we remain focused on building a resilient banking franchise with a diversified earnings base,” Onyeali-Ikpe added.
And that is precisely what Fidelity Bank is doing. Those spreading bankruptcy rumours about Fidelity Bank Plc — a full-fledged commercial bank serving over 9.1 million customers through digital channels, 255 business offices across Nigeria, and a UK subsidiary, FidBank UK Limited — are merely indulging in wishful thinking. Their claims are not backed by facts, evidence, or logic.
As published on TheNicheNG.com