Fidelity Bank Plc is expected to pay an estimated ₦76 billion in the long-running dispute with S.A.G. Commercial Services Limited (SAGCOM), following a recent Supreme Court ruling that substantially clarified the mode of computation of the judgment debt.
The apex court, in a ruling delivered around December 12, 2025, partially granted Fidelity Bank’s application for clarification on the judgment sum arising from a High Court decision delivered on January 30, 2018.
In its ruling, the Supreme Court affirmed that the judgment debt must be paid strictly in Nigerian naira and not in United States dollars. The court further held that interest on the judgment sum is to be calculated at a rate of 19.5 per cent per annum on a simple interest basis, rejecting interpretations that suggested daily or compounded interest.
Crucially, the court also ruled that any dollar-denominated components of the original award must be converted to naira using the exchange rate applicable as at the date of the High Court judgment in January 2018. The court relied on established precedent, including Anibaba v. Dana Airlines, to bar the use of current exchange rates.
However, the Supreme Court declined Fidelity Bank’s request to formally fix the principal judgment sum at ₦30.2 billion, a figure the bank had presented as its computation of the debt based on the 2018 exchange rate.
Despite this refusal, court filings and consistent references by the bank indicate that the principal liability stands at approximately ₦30.2 billion, representing the naira value of the original award as of January 2018.
Applying simple interest of 19.5 per cent per annum from early 2018 to mid-December 2025, the accrued interest is estimated at about ₦46.38 billion. This brings the total amount potentially payable by Fidelity Bank to roughly ₦76.58 billion as of December 16, 2025, with interest continuing to accrue at approximately ₦16 million per day until full settlement.
The clarification has significantly eased market concerns after widespread speculation suggested Fidelity Bank could be exposed to a liability exceeding ₦200 billion, based on assumptions of daily compounding interest and conversion at prevailing exchange rates.
Analysts say the ruling provides substantial financial relief to the bank by capping the exchange rate at 2018 levels and eliminating compounded interest, while still affirming Fidelity Bank’s obligation to satisfy the judgment debt.
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