A High Court of the Federal Capital Territory (FCT), Abuja, has ordered the freezing of N7.15 billion linked to Parallex Bank Limited over an alleged breach of trust and failure to honour a letters of credit agreement with FHT Mega Express Limited.
Justice Hauwa Lawal Gummi granted the interim order following an ex parte application filed by FHT Mega Express in Suit No: CV/4737/2025, directing the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to sequester the disputed funds in an interest-yielding account pending the hearing of a motion on notice fixed for January 15, 2026.
Parallex Bank, the CBN and the NDIC are listed as first, second and third respondents in the suit.
According to court documents, FHT Mega Express deposited N7,154,677,000 with Parallex Bank in 2023 as cash collateral to establish letters of credit valued at $7,310,257.99 for international trade transactions. However, the company alleged that despite receiving the funds, the bank failed, refused and neglected to issue the letters of credit.
In a 49-paragraph affidavit deposed to by O. Yomi Sholoye and filed by counsel to the applicant, Tolu Babalaye, FHT Mega Express accused Parallex Bank of trading with its funds without authorisation or payment of interest, while also failing to release the bills of lading for imported goods. The applicant claimed the prolonged delay resulted in the Nigeria Customs Service auctioning the goods.
The company further alleged that the bank later demanded additional funds to cover foreign exchange differentials arising from volatility in the FX market, describing the demand as a pretext to justify the continued withholding of its funds, having already provided the naira equivalent upfront.
Justice Gummi, in granting the interim reliefs on December 18, 2025, held that the applicant had established a prima facie case warranting the preservation of the funds to prevent dissipation and to safeguard the subject matter of the dispute.
The court directed the CBN and NDIC, in their regulatory capacities, to withhold all monies attributable to Parallex Bank connected to the transaction and transfer same into an interest-yielding account under their custody pending the determination of the substantive motion.
FHT Mega Express undertook to pay damages should the interim order later be found to have been wrongly granted, stressing that the relief sought was preservative and in the interest of justice.
Court documents indicate that repeated demands by the company for either execution of the letters of credit transaction or a refund of the funds were unsuccessful, prompting the legal action.