Fidelity Bank Shares Plunge 11% as N225bn Debt, Earnings Silence Rattle Investors

Fidelity Bank is reeling under intense market pressure as its shares crashed 11 per cent on the Nigerian Exchange (NGX), with jittery investors dumping stock over fears of a crippling N225 billion judgment debt and a delayed earnings release.

The selloff drove the bank’s share price down to N18.45, well below recent highs, as trading data showed heavy exits by wary shareholders. Market watchers say the slump reflects a growing confidence crisis after the bank failed to publish its half-year 2025 financial statements, even as peers in the tier-1 and tier-2 category have already posted robust results.

Adding fuel to the panic is an unresolved Supreme Court judgment in favour of Sagecom Concept Ltd, which saddled Fidelity with a staggering N225 billion liability linked to its legacy takeover of FSB International Bank. Analysts warn that the payout, if enforced, could severely weaken capital buffers and wipe off a significant portion of the bank’s earnings.

“Investors are pricing in the worst-case scenario,” one Lagos-based trader said, noting that the silence on earnings has created a perception of deeper trouble.

Despite repeated assurances of resilience from management and the Central Bank of Nigeria, the market remains unconvinced. Analysts describe the situation as a “perfect storm” for Fidelity, warning that unless its books are released swiftly, selling pressure could intensify and erode shareholder value even further in the weeks ahead.