FCT court freezes N7.15bn linked to Parallex Bank over letters of credit dispute

A Federal Capital Territory (FCT) High Court has directed the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to freeze N7.15 billion connected to Parallex Bank Limited.

The order was issued by Judge Hauwa Gummi in Asokoro, Abuja, following an ex parte application filed by FHT Mega Express Limited.

In the suit, marked CV/4737/2025, FHT Mega Express named Parallex Bank Limited as the first respondent, with the CBN and NDIC listed as the second and third respondents, respectively.

In the interim order dated December 18, 2025, the court directed the CBN and NDIC to withhold all monies standing to the credit of the bank, amounting to N7,154,677,000.

The judge ordered that the funds be transferred into an interest-yielding account under the custody and control of the financial institutions, pending the hearing and determination of the motion on notice.

The court granted the reliefs sought by the applicant and adjourned the matter till January 15, 2026, for the hearing of the substantive motion.

The ex parte application was moved by Tolu Babalaye, counsel to FHT Mega Express, and supported by a 49-paragraph affidavit deposed to by O. Yomi Sholoye.

Court documents showed that hearing notices were issued to the respondents, including Parallex Bank, the CBN, and the NDIC.

According to available court documents, the dispute arose from a banking relationship between FHT Mega Express and Parallex Bank in 2023 over funds deposited for the issuance of letters of credit (LC).

According to the applicant, FHT Mega Express maintains an account with Parallex Bank into which it deposited N7.15 billion as cash collateral for the establishment of LC valued at $7.31 million, intended to facilitate international trade transactions.

The applicant told the court that Parallex Bank issued an indicative offer of banking facilities on June 7, 2023, assuring that the LC would be issued promptly once the cash collateral was provided, with foreign exchange sourcing expected to commence immediately.

However, FHT Mega Express alleged that the bank failed to issue the letters of credit as agreed and did not utilise the funds for the purpose for which they were deposited.

The applicant alleged that instead of executing the transaction, the bank delayed the purchase of foreign exchange during a period of volatility in the FX market, leading to a sharp increase in exchange rates.

The company further alleged that when the imported goods arrived in Nigeria, Parallex Bank demanded additional funds from the applicant to cover what it described as an FX differential.

FHT Mega Express argued that the demand arose from the bank’s failure to act promptly, insisting that it had fulfilled all its obligations by providing the full naira equivalent required for the transaction.

The applicant also alleged that the bank declined to release the bill of lading for the imported goods, leading to the containers being abandoned and subsequently auctioned by the Nigeria Customs Service (NSC) to third parties.

According to the applicant, repeated demands for either the execution of the transaction or a refund of the deposited funds were unsuccessful, prompting the legal action.

FHT Mega Express further expressed concern that Parallex Bank might be unable or unwilling to refund the funds if judgement is eventually entered in its favour, hence the request for an interim preservatory order.

The applicant told the court that the order sought was aimed at preserving the funds and preventing their dissipation before the substantive issues are determined.

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