A High Court of the Federal Capital Territory (FCT) sitting in Asokoro, Abuja, has ordered the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to freeze N7.15 billion linked to Parallex Bank Limited over a dispute involving letters of credit.
The interim order was issued by Justice Hauwa Gummi following an ex parte application filed by FHT Mega Express Limited.
In the suit marked CV/4737/2025, FHT Mega Express listed Parallex Bank Limited as the first respondent, while the CBN and NDIC were named as the second and third respondents.
In the ruling dated December 18, 2025, the court directed the CBN and NDIC to withhold all funds standing to the credit of Parallex Bank in the sum of N7,154,677,000. The judge further ordered that the funds be moved into an interest-yielding account under the custody and control of the financial regulators, pending the hearing and determination of the substantive motion.
Justice Gummi granted all the reliefs sought by the applicant and adjourned the matter to January 15, 2026, for hearing of the motion on notice.
The ex parte application was moved by counsel to FHT Mega Express, Tolu Babalaye, and supported by a 49-paragraph affidavit deposed to by O. Yomi Sholoye. Court records showed that hearing notices were issued to all respondents, including Parallex Bank, the CBN, and the NDIC.
According to court documents, the dispute arose from a banking relationship between FHT Mega Express and Parallex Bank in 2023, involving funds deposited for the issuance of letters of credit (LC).
FHT Mega Express told the court that it maintains an account with Parallex Bank and deposited N7.15 billion as cash collateral for the establishment of LCs valued at $7.31 million to support international trade transactions.
The company said Parallex Bank issued an indicative offer of banking facilities on June 7, 2023, assuring that the letters of credit would be issued immediately upon receipt of the collateral, with foreign exchange sourcing expected to commence promptly.
However, the applicant alleged that the bank failed to issue the letters of credit as agreed and did not apply the funds for their intended purpose. Instead, the bank allegedly delayed the purchase of foreign exchange during a period of market volatility, resulting in a significant increase in exchange rates.
FHT Mega Express further alleged that when the imported goods eventually arrived in Nigeria, Parallex Bank demanded additional funds to cover what it described as foreign exchange differentials. The company argued that the demand stemmed from the bank’s failure to act in a timely manner, insisting it had fully met its obligations by providing the required naira equivalent upfront.
The applicant also accused the bank of refusing to release the bill of lading for the goods, leading to the containers being abandoned and later auctioned by the Nigeria Customs Service.
According to the company, repeated demands for either the completion of the transaction or a refund of the deposited funds yielded no result, prompting the legal action.
FHT Mega Express told the court that it sought the interim preservatory order out of concern that Parallex Bank might be unable or unwilling to refund the funds if judgment is eventually entered in its favour, stressing that the order was necessary to prevent dissipation of the disputed sum pending the determination of the case.
