N7.15bn Freeze: Parallex Bank asks Court to Strike out FHT Suit

Parallex Bank Limited has asked a Federal Capital Territory (FCT) High Court to dismiss a N7.15 billion suit filed against it by FHT Mega Express Limited over an alleged abuse of court process, forum shopping and suppression of material facts.

In a notice of preliminary objection, the bank urged the court to set aside the interim ex parte order that led to the freezing of its funds and to strike out the suit.

The logistics firm had sued Parallex Bank alongside the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC), prompting the court to order the regulators to freeze N7,154,677,000 standing to the credit of the bank.

Justice Hauwa Gummi of the FCT High Court, sitting in Asokoro, Abuja, had on December 18, 2025, directed the CBN and NDIC to place the funds in an interest-yielding account pending the hearing and determination of the motion on notice.

Dispute Over Letters of Credit

Court filings show that the dispute arose from a banking relationship between FHT Mega Express and Parallex Bank involving funds deposited for the issuance of letters of credit.

FHT Mega Express told the court that it paid N7.15 billion to Parallex Bank as cash collateral for letters of credit valued at about $7.31 million to finance import transactions.

According to the firm, Parallex Bank issued an indicative offer of banking facilities in June 2023, assuring that the letters of credit would be issued once the cash collateral was provided and that foreign exchange sourcing would commence immediately.

However, the claimant alleged that the bank failed to issue the letters of credit as agreed and delayed the purchase of foreign exchange during a period of volatility in the FX market.

It further claimed that when the goods arrived in Nigeria, the bank demanded additional funds to cover foreign exchange differentials and refused to release the bill of lading, resulting in the goods being auctioned by the Nigeria Customs Service for alleged abandonment.

Bank Cites Earlier Court Actions

Parallex Bank told the Abuja court that the dispute predates the FCT suit and is already the subject of litigation before the Federal High Court in Lagos.

The bank said it filed a suit on September 4, 2025, marked FHC/L/CS/1774/2025, seeking to recover an alleged N4.5 billion debt owed by FHT Mega Express, arising from several letters of credit issued to finance import transactions.

On October 14, 2025, the Lagos Federal High Court ordered all parties to maintain the status quo pending the determination of the substantive suit.

Parallex Bank also alleged that FHT Mega Express filed a similar action at the Lagos State High Court seeking ex parte orders to freeze its funds, but the court declined the request and ordered that the bank be put on notice, after which the suit was discontinued.

The bank argued that the Abuja action raises substantially the same issues, amounts to re-litigation, and falls within the exclusive jurisdiction of the Federal High Court.

In an affidavit sworn to by Cynthia Akunaeziri, a manager at the bank, Parallex Bank detailed the letters of credit involved and said the Lagos suit seeks both recovery of the alleged debt and enforcement of its banker’s lien over the goods financed through the facilities.

The matter has been adjourned to February 4 for the hearing of the bank’s preliminary objection.

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Rafiyat SADIQ

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Rafiyat Sadiq is a political, justice, and human rights reporter with Pinnacle Daily, known for fearless reporting and impactful storytelling. At Pinnacle Daily, she brings clarity and depth to issues shaping governance, democracy, and the protection of citizens’ rights.