By Ayomide Otitoju
Fidelity Bank Plc has strongly refuted circulating rumours alleging it is on the brink of bankruptcy, describing such claims as baseless and misleading. The bank issued the clarification following a Supreme Court ruling involving a legacy $3 million credit facility originally granted by the defunct FSB International Bank in 2002.
In a statement issued Monday by its Divisional Head of Brand & Communications, Meksley Nwagboh, the bank assured its customers, investors, and stakeholders that it remains financially stable and is not facing any solvency or liquidity challenges.
“The issues leading up to the judgment arose from a legacy transaction between the defunct FSB International Bank and Sagecom Concepts Limited,” the statement explained. FSB, which was later acquired by Fidelity Bank, had granted a $3 million credit facility to G. Cappa Plc, secured by a mortgaged property in Ikoyi, Lagos. Following a default on the loan, the property was sold to Sagecom in 2011, prompting litigation that ultimately reached the Supreme Court.
While the apex court ruled in favour of Sagecom, Fidelity Bank noted that the damages awarded stem from G. Cappa’s continued occupation of the property and rent collection. Despite the outcome, the bank emphasized that it is exploring judicial clarification regarding the computation of the judgment sum and is open to a settlement arrangement.
According to investigations, both Fidelity Bank and Sagecom are reportedly in discussions over a mutually agreed payment plan.
The bank described the resulting bankruptcy speculation as a “demarketing campaign” orchestrated by detractors seeking to undermine its reputation.
“The judgment does not threaten our financial viability,” the bank said. “Fidelity Bank is not under the threat of bankruptcy or liquidation. We remain a going concern and continue to operate from a position of strength.”
The Central Bank of Nigeria (CBN) also intervened on Monday night, debunking the insolvency rumours. In a statement by its Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank reaffirmed the resilience and stability of Nigeria’s banking sector.
“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,” the statement read.
The CBN urged the public to disregard unverified claims and rely on official channels for information.
Industry analysts have also weighed in, dismissing the bankruptcy narrative as a fabrication. “How can a bank that just posted a N105.8 billion pre-tax profit in Q1 2025 be on the verge of collapse?” queried financial expert Olamilekan Johnson. “This is clearly a smear campaign by those threatened by Fidelity Bank’s remarkable growth.”
Fidelity Bank’s recently released unaudited financial statements for Q1 2025 showed a 167.8% year-on-year increase in profit before tax, rising from N39.5 billion in Q1 2024 to N105.8 billion. Gross earnings surged to N315.4 billion, up 64.2% from N192.1 billion in the corresponding period.
Customer deposits also rose by 11.1% to N6.6 trillion, driven by growth in low-cost deposits, which now account for over 92% of total deposits. Foreign currency deposits climbed from $1.9 billion in December 2024 to $2.3 billion in March 2025.
Commenting on the performance, Managing Director and CEO Dr. Nneka Onyeali-Ikpe said, “We started the year with triple-digit growth in profit and sustained momentum in our earning assets. This performance underscores the resilience of our business model.”
The bank, which serves over 9.1 million customers through digital platforms and a network of 255 business offices in Nigeria and the UK, is currently executing a capital raise of N127.1 billion to meet CBN’s new capitalisation requirements. It remains one of the most capitalized and actively traded banks on the Nigerian Exchange (NGX).
With a solid capital adequacy ratio, positive investor sentiment, and a strong operational footprint, Fidelity Bank reiterated its commitment to supporting customers and maintaining stability in the financial system.
“The facts speak for themselves,” the bank stated. “Fidelity Bank remains a leading financial institution, grounded in sound corporate governance and poised for continued growth.”
