Court docket freezes N7.15bn linked to Parallex Bank over alleged breach of belief

A Federal Capital Territory (FCT) excessive court docket has issued an order directing the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance coverage Company (NDIC) to freeze N7.15 billion linked to Parallex Bank Restricted.

The interim order, handed down by Justice Hauwa Gummi of the excessive court docket in Asokoro, Abuja, adopted an ex parte utility introduced earlier than the court docket by FHT Mega Specific Restricted.

Within the go well with marked CV/4737/2025, FHT Mega Specific named Parallex Bank Restricted as the primary respondent, with the CBN and NDIC listed as second and third respondents.

Within the December 18, 2025 order, the court docket directed each monetary regulators to “withhold all monies standing to the credit score of the financial institution, amounting to N7,154,677,000.”

The decide additional ordered that the funds be positioned into “an interest-yielding account” below the custody and management of the regulators pending the willpower of a movement on discover.

All prayers sought by the applicant had been granted, and the matter was adjourned to January 15, 2026, for listening to of the substantive utility.

The ex parte movement was introduced by Tolu Babalaye, counsel to FHT Mega Specific, supported by a 49-paragraph affidavit deposed to by O. Yomi Sholoye.

Court docket filings additionally confirmed that listening to notices had been issued to Parallex Bank, the CBN, and the NDIC.

Court docket paperwork define how the disagreement started in 2023 when FHT Mega Specific deposited N7.15 billion with Parallex Bank as money collateral for the issuance of letters of credit score (LC) valued at $7.31 million to assist worldwide commerce transactions.

FHT Mega Specific maintains an account with Parallex Bank and stated the financial institution issued “an indicative supply of banking amenities” on June 7, 2023, with assurances that the LCs can be issued as soon as funds had been supplied and overseas alternate sourcing would start instantly.

In keeping with the corporate, the financial institution “did not subject the letters of credit score” and didn’t deploy the funds for his or her agreed function.

As a substitute, the applicant alleged, Parallex Bank delayed buying overseas alternate because the market fluctuated, resulting in steep alternate charge will increase.

Issues worsened when the products arrived in Nigeria and the financial institution allegedly demanded extra funds to cowl what it known as “FX differential.”

FHT Mega Specific argued the demand arose solely as a result of the financial institution did not act promptly and insisted it met all required obligations by supplying the complete naira worth upfront.

The corporate additional alleged the financial institution refused to launch the invoice of lading, ensuing within the items being stranded, deserted, and ultimately auctioned by the Nigeria Customs Service.

Repeated calls for by the applicant — for both execution of the LC or a refund — had been unsuccessful.

The corporate stated it grew to become involved that Parallex Bank “is perhaps unable or unwilling to refund the funds” if judgment had been ultimately awarded in its favour.

Therefore, it sought the interim order “to protect the funds and stop their dissipation” pending full decision of the case.