Parallex Bank: Court Orders  N7bn Seized

The Central Bank of Nigeria and the NDIC have been directed to take possession of over N7 billion belonging to Parrallex Bank Limited.

The interim order was granted on December 18, 2025.

The order to freeze the fund was issued by the Federal Capital Territory, FCT to the two financial regulators as part of the ongoing case against the bank by a firm, FHT Mega Express Limited.

While issuing the order, Justice Hauwa Gummi also directed the agencies to deposit the money in an interest yielding account until the ex parte application filed by the plaintiff is heard.

The case will be heard today.

The suit is marked CV/4737/2025, while the motion is referenced as M15374/2025.

According to the affidavit deposed to by Tolu Babalaye, counsel to the claimant, FHT Mega Express maintains an account with Parallex Bank into which it paid the disputed sum. The company stated that the funds were provided as cash collateral for the issuance of Letters of Credit valued at $7,310,257.99 to facilitate international trade transactions.

The claimant alleged that despite receiving the funds, Parallex Bank failed to issue the Letters of Credit as agreed. It further stated that the funds have remained with the bank since 2023 without being applied to the intended purpose.

Court documents indicate that the bank issued an indicative offer of banking facilities to the claimant on June 7, 2023, assuring that the Letters of Credit would be issued promptly upon provision of cash collateral, and that foreign exchange sourcing would commence immediately.

FHT Mega Express alleged that delays in foreign exchange sourcing coincided with volatility in the foreign exchange market, leading to an increase in exchange rates. It stated that upon the arrival of the imported consignments, the bank demanded additional funds to cover foreign exchange differentials.

The claimant further stated that Parallex Bank refused to release the bills of lading for the imported goods, resulting in the consignments being auctioned by the Nigeria Customs Service. The goods were reportedly sold to third parties.

FHT Mega Express is seeking orders to preserve the disputed funds, expressing concern that the bank may be unable to refund the money if judgment is eventually entered in its favour.

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

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.

BACKGROUND

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.

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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.

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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.

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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.