FCT court freezes N7.15bn in Parallex Bank dispute

FCT court orders Parallex Bank fund freeze of N7.15bn, directing CBN and NDIC to secure money pending legal dispute resolution

Abuja, Nigeria – A Federal Capital Territory (FCT) High Court 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.

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The order, issued by Judge Hauwa Gummi in Asokoro on December 18, 2025, follows an ex parte application filed by FHT Mega Express Limited.

The court directed the CBN and NDIC to withhold all monies in the account and transfer the funds into an interest-yielding account under their custody, pending the hearing of the substantive motion scheduled for January 15, 2026.

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

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

Court documents indicate the dispute arose from a banking relationship between FHT Mega Express and Parallex Bank in 2023 over funds deposited for letters of credit (LC).

FHT Mega Express deposited N7.15 billion as cash collateral for a $7.31 million LC intended to facilitate international trade.

The applicant alleged that Parallex Bank failed to issue the letters of credit as agreed and did not use the funds for their intended purpose.

Instead, the bank reportedly delayed foreign exchange purchases amid market volatility, demanding additional funds to cover the resulting FX differential.

FHT Mega Express also claimed that Parallex Bank declined to release the bill of lading for imported goods, leading to abandoned containers that were subsequently auctioned by the Nigeria Customs Service to third parties.

Repeated requests for either execution of the transaction or a refund were unsuccessful, prompting the legal action.

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The company argued that the freeze was necessary to preserve the funds and prevent their dissipation before the court resolves the substantive issues.

Peculiar Adirika