The Managing Director and Chief Executive Officer (MD/CEO) of Fidelity Bank, Dr. Nneka Onyeali-Ikpe, is reportedly engaged in insider trading by purchasing 18 million shares of the bank at N20.25 per share, raising serious ethical and legal questions.
Insider trading, the illegal practice of trading securities based on confidential, non-public information, is a grave offence in financial markets.
For a bank MD, who has privileged access to sensitive information about the bank’s financial status, mergers, or regulatory issues, such actions could amount to a serious breach of trust and corporate governance standards.
Sources say that the move to buy shares comes as Fidelity Bank faces enormous pressure following a recent Supreme Court ruling.
“Due to the pressure of the court ruling, Fidelity Bank has begun creating the impression that their shares are strong in an attempt to fool the public,” one of the sources said.
“The MD of Fidelity Bank on Tuesday used bank funds to purchase 18 million shares at N20.25 per share.”
The apex court upheld a ₦225 billion judgment debt against the bank in favour of Ibadan-based Sagecom Concept Limited, a liability far exceeding the bank’s reported ₦14 billion claim.
The judgment debt, originating from a credit dispute tied to the now-defunct FSB International Bank, has ballooned due to compounded daily interest of 19.5 percent per annum.
As of May 20, 2025, the amount owed had risen to approximately $139.36 million (₦224.5 billion) at prevailing exchange rates.
In response to the judgment, Fidelity Bank has reportedly attempted to project an image of financial strength to the market by orchestrating significant share purchases—actions critics describe as an effort to mislead investors and the public about the bank’s true position.
A statement from Fidelity Bank’s Divisional Head of Brand and Communications, Meksley Nwagboh, acknowledged the court ruling and confirmed ongoing talks with Sagecom’s legal team to arrange a structured repayment plan.
The bank insists that its liability is closer to ₦14 billion and expressed commitment to complying with the Supreme Court order.
“Even if the 2018 exchange rate supported by the Supreme Court is applied, the judgment debt will just be under N30.7 billion payable by G.Cappa Plc (who delayed delivery of possession of the apartments from 2005 till June 2018 when possession was eventually delivered) with contribution from the Bank,” a statement from the bank said.
The bank confirmed that it “has applied to the Court for a clarification and inquiry into the proper interpretation of the judgment and the computation of the actual quantum properly and lawfully payable by G. Cappa and the Bank”.
Reacting to the purchase of the shares, the bank’s Divisional Head of Brand and Communications, Meksley Nwagboh, said Onyeali-Ikpe purchased the shares because she believed in the bank.
“As the person at the helm of affairs of the bank, the MD has shown faith in the bank by purchasing 18 million shares of the bank with her personal funds,” he said.
“I think this gesture of the MD shows her belief in the long-term viability of the bank and is highly commendable.”
Background
The dispute dates back to 2002 when FSB International Bank granted a $3 million loan to G. Cappa Plc, secured by a mortgage on a property in Ikoyi, Lagos.
In its abridged prospectus dated June 5, 2024, issued for a public offering by way of an offer for subscription of 10 billion ordinary shares of 50 kobo each at ₦9.75 per share, Fidelity Bank disclosed that it was “presently involved in sixty-eight (68) cases as of 31 January 2024.”
The bank further stated: “Of the sixty-eight (68) cases listed in the schedule, the Solicitors to the Transaction identified twenty-four (24) case files maintained by the Bank (comprising copies of court processes) that fall within or above the materiality threshold.
“Of these twenty-four (24) cases, the Bank is the claimant in four (4). In one (1) of those four, the Bank is also the defendant to a counterclaim. The Bank is the defendant in seventeen (17) cases filed against it by various individuals and organisations. Out of those seventeen (17), the Bank has filed counterclaims in five (5). In addition, the Bank is the appellant in three (3) cases where judgment has previously been delivered against it.”
It claimed that the “total monetary sum in the Three (3) cases in which judgment was delivered against the Bank is ₦150,000,000.00 (One Hundred and Fifty Million Naira) and USD$633,750 (Six Hundred and Thirty-Three Thousand, Seven Hundred and Fifty United States Dollars) excluding interests, which may accumulate on the judgment sum until same is finally liquidated.”
As of May 20, 2025, $633,750 was valued at ₦1,020,952,237.50 using the exchange rate of ₦1,610.97 per dollar, a figure that falls significantly short of the approximately ₦225 billion claimed.
Fidelity Bank Plc made similar representations regarding its liabilities in its 2024 Annual Report, which received the approval of the Central Bank of Nigeria.
Meanwhile, the Lagos court awarded significant special damages in favour of Sagecom Nigeria Limited, the claimant in a protracted legal battle over a multi-unit residential property comprising several flats and two penthouses at No. 25, Probyn Road, Ikoyi, Lagos.
In its ruling, the court directed the second defendant, G. Cappa Plc, and the first defendant, Fidelity Bank Plc, to jointly and severally pay compensation to Sagecom for lost rental income. The awarded amounts were determined based on the annual rental value of each unit, denominated in U.S. dollars or its equivalent in Naira at the prevailing Central Bank of Nigeria (CBN) exchange rate at the time of payment.
The court’s assessment of damages took into account the specific rental values and the dates on which the losses were deemed to have commenced—ranging from November 2005 to December 2006 for different units. Up until June 20, 2011, liability was assigned solely to G. Cappa Plc.
However, from June 21, 2011 onward, both G. Cappa and Fidelity Bank Plc were held jointly and severally responsible. That liability remains in place until Sagecom either regains possession of the property or the original 25-year lease—granted to G. Cappa by NEPA in January 2001—expires, whichever comes first.
The annual rental values for the units ranged from $30,000 to $67,500 each. Specifically, Flat 5 was valued at $30,000 per year; Flats 2 and 8 at $33,750; Flat 9 at $56,250; Flats 1, 3, 4, and 6 at $60,000; Flats 7 and 10 at $52,500; and both penthouses at $67,500 each. These amounts are payable in U.S. dollars or their Naira equivalent, calculated at the Central Bank of Nigeria’s official exchange rate on the payment date.
The court’s ruling compensates Sagecom for the extended period during which it was denied rental income following the 2005 purchase of the property—a transaction later deemed to have breached an existing court injunction.
Damages are calculated from each unit’s respective start date until Sagecom either regains possession or the 25-year lease, which began on January 1, 2001, expires—whichever occurs first.
Additionally, the court ordered that interest on the awarded annual rental values accrues at a daily compounded rate of 19.5% per annum, starting from each annual due date until full payment is made.
According to a detailed breakdown obtained by SaharaReporters from informed sources as of Tuesday, May 20, 2025, accrued amounts stand at $13,845,911.35 for Flat 1; $7,788,325.14 for Flat 2; $11,961,284.38 for Flat 3; $11,120,630.09 for Flat 4; $6,092,359.64 for Flat 5; $12,401,291.16 for Flat 6; $12,115,172.43 for Flat 7; $7,788,325.14 for Flat 8; $12,980,541.89 for Flat 9; $12,115,172.43 for Flat 10; $15,576,650.27 for Penthouse 1; and $15,576,650.27 for Penthouse 2.
In total, these amounts add up to $139,362,314.19, equivalent to approximately ₦224,508,507,297.70 at an exchange rate of ₦1,610.97 per dollar.
Below is a breakdown of the court’s award:
Awarded Annual Rental Values (Per Unit):
Flat 1
US$60,000/year
From November 25, 2005 to June 20, 2011: Against G. Cappa only
From June 21, 2011 onwards: Against both defendants, until Sagecom regains possession or lease expires.
Flat 2
US$33,750/year
Same effective dates and conditions as Flat 1.
Flat 3
US$60,000/year
From August 1, 2006 to June 20, 2011: Against G. Cappa only
From June 21, 2011 onwards: Against both defendants.
Flat 4
US$60,000/year
From December 1, 2006 to June 20, 2011: Against G. Cappa only
From June 21, 2011 onwards: Against both defendants.
Flat 5
US$30,000/year
From July 1, 2006 to June 20, 2011: Against G. Cappa only
From June 21, 2011 onwards: Against both defendants.
Flat 6
US$60,000/year
From June 1, 2006 to June 20, 2011: Against G. Cappa only
From June 21, 2011 onwards: Against both defendants.
Flat 7
US$52,500/year
From November 25, 2005 to June 20, 2011: Against G. Cappa only
From June 21, 2011 onwards: Against both defendants.
Flat 8
US$33,750/year
Same effective dates and conditions as Flat 7.
Flat 9
US$56,250/year
Same effective dates and conditions as Flat 7.
Flat 10
US$52,500/year
Same effective dates and conditions as Flat 7.
Penthouse 1
US$67,500/year
Same effective dates and conditions as Flat 7.
Penthouse 2
US$67,500/year
From November 25, 2005 to June 21, 2011: Against G. Cappa only
From June 21, 2011 onwards: Against both defendants.
