A recent ruling by the Supreme Court of Nigeria has brought a longstanding case to a close, with significant implications for the financial sector. The court, led by Justice Lawal Garba, ruled in favor of Fidelity Bank in its appeal against Sagecom Concepts Limited. The ruling, delivered on Friday, provides clarity on a legacy case that has been ongoing for over two decades.
The case originated from a 2002 credit facility extended to G. Cappa Plc, which was later tied to a collateral dispute. Fidelity Bank had merged with FSB International Bank in 2005, assuming the liabilities associated with the transaction. The bank had filed a motion with the Supreme Court seeking clarification on the judgment debt, including the interest rate and exchange rate to be applied.
The Supreme Court granted Fidelity Bank’s prayers, ruling that the judgment sum of N30,197,286,603 would be paid in Naira at an interest rate of 19.5% per annum, rather than the compounded daily rate of 19.5% previously awarded by the High Court. The court also ruled that the exchange rate to be used would be the rate applicable on the date of the High Court judgment, in line with the precedent set in Anibaba v. Dana Airlines.
This ruling brings an end to years of litigation and confirms a significantly lower liability for Fidelity Bank than the initially speculated N225 billion. The bank’s share price has remained stable throughout the case, reflecting investor confidence in its governance framework, risk management practices, and financial fundamentals.
The Supreme Court’s decision provides closure to a case that has drawn significant attention across the financial sector. The ruling demonstrates the importance of clarity and consistency in the application of financial regulations and laws. As the financial sector continues to evolve, this decision is likely to have implications for similar cases and transactions in the future. With the ruling now providing a clear outcome, Fidelity Bank can move forward, and the financial sector can take note of the significance of this decision.
