Fidelity Bank Plc and GON-SETEC Nigeria Limited have amicably resolved a dispute arising from a disagreement over a consultancy engagement connected to wastewater regulatory compliance at the bank’s Lagos headquarters.
The resolution followed a reconciliation meeting between representatives of both parties on Thursday, August 13, 2026, at Fidelity Bank’s headquarters in Lagos, where terms of settlement were agreed.
The dispute originated from a regulatory matter involving the Lagos State Wastewater Management Office, which had issued Fidelity Bank a 72-hour Abatement Notice concerning wastewater compliance at its head office on 2 Kofo Abayomi Street, Victoria Island, Lagos.
Fidelity Bank subsequently engaged GON-SETEC through a letter dated Wednesday, May 6, 2026, to assist with addressing the regulatory concerns and communicating with the wastewater management authorities.
The consultancy was expected to review the statutory notice, advise the bank on technical and regulatory responses, engage the Lagos State Wastewater Management Office on the bank’s behalf, negotiate with regulatory officials to avert enforcement action and advise on compliance measures required by the regulator.
The engagement also required GON-SETEC to act urgently to help prevent possible prosecution, sanctions, closure of facilities and other enforcement measures arising from the regulatory notice.
GON-SETEC subsequently mobilised engineers, environmental consultants and regulatory experts to undertake the assignment.
According to the consultancy’s legal representative, Kola Kuforiji, the firm successfully negotiated a two-week extension with the regulatory authority while keeping the bank informed about its engagements and progress.
However, the relationship later deteriorated after GON-SETEC discovered that Fidelity Bank had awarded the sewage-related project to another firm.
In a letter dated Monday, July 20, 2026, Kuforiji alleged that the bank had wrongfully terminated GON-SETEC’s engagement after the consultancy had already deployed resources and carried out work on the assignment.
The consultancy described the action as a breach of contract, wrongful termination, unjust enrichment and loss of business opportunity.
GON-SETEC subsequently demanded ₦150 million from the bank, with the demand reportedly including fees and expenses as well as ₦80 million in damages for breach of contract, wrongful termination and loss of anticipated profits.
The firm’s lawyers gave the bank 14 days to settle the demand, warning that legal action would follow if the matter was not resolved.
Fidelity Bank, however, rejected the allegation that it had wrongfully terminated a contract.
In its response dated Monday, August 10, 2026, the bank maintained that there was no contract capable of being terminated in the manner alleged by GON-SETEC.
The bank nevertheless acknowledged that GON-SETEC had provided consultancy services at its request, while stating that compensation for those services had not previously been discussed or agreed.
Fidelity Bank also explained that the substantive sewage treatment project had gone through its procurement process.
According to the bank, GON-SETEC was among several vendors invited to participate in a competitive tender for the deployment of a sewage treatment plant at its Kofo Abayomi office, but its bid was unsuccessful after the evaluation process.
The bank therefore rejected GON-SETEC’s claim to a legitimate expectation to execute the project and earn the associated profits.
Despite the disagreement over whether a contract had been wrongfully terminated, Fidelity Bank invited GON-SETEC to a meeting aimed at reaching an amicable resolution.
Representatives of both parties met on Thursday, August 13, 2026, and agreed on terms of settlement.
The settlement was subsequently formalised through a letter dated Friday, August 21, 2026, signed by Oluwatodimu Adeyemi of the bank’s Legal Services Division and Adebukunola Siyonbola of its Litigation and Dispute Resolution Group.
The letter was addressed to Kuforiji, who represented GON-SETEC in the dispute.
Fidelity Bank confirmed that it had made an agreed payment to GON-SETEC, covering the consultancy services rendered and bringing the claim to a final resolution.
The bank described the payment as the “fee for the consultancy services rendered by your client to the bank and in full and final settlement of your client’s claim on the matter.”
The exact amount eventually paid to GON-SETEC was not disclosed publicly in the reports reviewed.
Consequently, the earlier ₦150 million demand should not be reported as the final settlement amount, as available reports only establish that an agreed sum was paid to settle the dispute.
The resolution brings to an end a disagreement that began with a wastewater regulatory compliance matter and later developed into a contractual dispute over the scope and termination of GON-SETEC’s engagement.
While GON-SETEC maintained that it had been wrongfully removed after performing professional services, Fidelity Bank maintained that the substantive project was subjected to a competitive procurement process and that no terminable contract existed in the form alleged by the consultancy.
Both parties ultimately opted for settlement rather than prolonged litigation, with the bank’s Friday, August 21 letter confirming the payment as full and final settlement of the claim.
