A High Court sitting in the Federal Capital Territory (FCT), Abuja, has ordered the freezing of ₦7.15 billion linked to Parallex Bank Limited over allegations of breach of trust and failure to honour a Letters of Credit agreement.
The interim order followed a suit filed by FHT Mega Express Limited, which accused the bank of failing to issue Letters of Credit despite receiving funds for the transaction.
Justice Hauwa Lawal Gummi, who granted the order, directed the Central Bank of Nigeria (CBN) to sequester the disputed funds in an interest-yielding account pending the determination of a motion on notice fixed for 15 January 2026.
Background
According to court documents, the order arose from an ex parte application in Suit No: CV/4737/2025, granted on 18 December 2025. The respondents in the case are Parallex Bank Limited, the CBN, and the Nigeria Deposit Insurance Corporation (NDIC).
In a 49-paragraph affidavit deposed to by counsel to the applicant, Tolu Babalaye, Esq., FHT Mega Express stated that it deposited ₦7,154,677,000 with Parallex Bank to establish Letters of Credit valued at $7.31 million for international trade transactions.
The applicant alleged that despite receiving the funds, Parallex Bank had, since 2023, failed, refused and neglected to issue the Letters of Credit as agreed.
Allegations Against Parallex Bank
FHT Mega Express further accused the bank of trading with its funds without authorisation, failing to pay interest, and withholding Bills of Lading required for the clearance of imported goods. According to the affidavit, the prolonged delay resulted in the Nigerian Customs Service auctioning the goods.
The applicant also alleged that Parallex Bank later demanded additional funds to cover foreign exchange differentials arising from FX volatility, describing the demand as “a pretext to justify wrongful withholding” of its money, having already paid the naira equivalent upfront.
The affidavit claimed that the bank’s actions amounted to negligence, unjust enrichment and a fundamental breach of mandate.
Court Ruling
In granting the interim reliefs, Justice Gummi held that the applicant had established a prima facie case warranting the preservation of the funds to prevent dissipation and protect the integrity of the proceedings.
The court ordered the CBN and NDIC, in their regulatory capacities, to secure all sums attributable to Parallex Bank pending the hearing and determination of the substantive motion.
The applicant undertook to pay damages should the order later be found to have been wrongly granted, stressing that the relief sought was purely preservative and in the interest of justice.