Court withholds N7.15bn bank’s funds over dispute

FHT Mega Express Limited has initiated legal proceedings against Parallex Bank Limited, the Central Bank of Nigeria (CBN), and the Nigeria Deposit Insurance Corporation (NDIC), before the High Court of the Federal Capital Territory. In the case presided over by His Lordship, Justice Hauwa Lawal Gummi, the court granted an interim order, compelling the CBN to temporarily withhold a sum of N7,154,677,000.00 (Seven Billion, One Hundred and Fifty-Four Million, Six Hundred and Seventy-Seven Thousand Naira) in a separate, interest-yielding account under its custody and control. This order was granted by the court pending the resolution of the Motion on Notice scheduled for hearing on January 15, 2026. The particulars of the suit, identified as Suit No: CV/4737/2025, with the motion application referenced as MOTION NO: M15374/2025, were granted on December 18, 2025. In the 49-paragraph affidavit submitted to the court by Tolu Babalaye Esq., counsel for the applicant, he articulated a breach of trust between FHT Mega Express Limited, the applicant, and its first respondent, Parallex Bank. According to the legal suit, FHT Mega Express, serving as the first applicant, holds an account at Parallex Bank, where it deposited a substantial sum of N7,154,677,000.00 which was intended for the establishment of Letters of Credit (LCs), which are essential financial instruments for facilitating international trade. The funds were earmarked for the issuance of LCs amounting to $7,310,257.99, in accordance with the existing agreement between the Claimant and the 1st Defendant/Respondent. However, Parallex Bank reportedly defaulted to fulfill its obligations since 2023. The court was told that the goods tied to the issued Letters of Credit were auctioned.

The applicant stated that the delay by the bank to purchase the foreign exchange coincided with a period of significant volatility in the Nigerian foreign exchange market, resulting in a sharp increase in the exchange rate from the time the Applicant had provided the naira equivalent.

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