Parallex Bank Moves to Overturn ₦7.15bn Freezing Order, Alleges Breach of Fair Hearing
Parallex bank, in a motion on notice dated January 7, 2026 at a Federal High Court, has urged the court to set aside the order which directed the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) to freeze the funds in an interest-yielding account following a suit filed by FHT Mega Express Limited, a logistics firm.
The dispute arose from a transaction involving letters of credit meant to finance import deals valued at about $7.31 million. FHT Mega Express claimed it deposited ₦7.15 billion as cash collateral with Parallex Bank for the issuance of the letters of credit but alleged that the bank failed to issue them as agreed, delayed foreign exchange purchases and withheld shipping documents when the goods arrived in Nigeria. The company said the actions resulted in the auctioning of its goods by the Nigeria Customs Service. Based on an ex parte application, the FCT High Court granted the interim freezing order on December 18, 2025, pending the determination of the substantive suit. Parallex Bank, however, is challenging both the freezing order and the suit itself. The bank argued that it was denied the opportunity to be heard before the order was made, describing the process as a clear breach of its constitutional right to fair hearing. The bank also accused FHT Mega Express of abuse of court process, alleging that the logistics firm engaged in forum shopping and failed to disclose the existence of a related suit pending before the Federal High Court in Lagos, where Parallex Bank is seeking to recover about ₦4.5 billion it claims is owed by the company. According to the bank, similar applications for interim relief had earlier been refused by other courts, prompting FHT Mega Express to approach the Abuja court to secure the freezing order The FCT High Court has adjourned the case to February 4, 2026, to hear Parallex Bank’s preliminary objections and motions challenging the suit and the interim order.
