Fact Check: Did Parallex Bank Breach The N7.15B FHT Transaction Trust?

Parallex Bank Limited has pushed back against claims that it breached trust agreement with FHT Mega Express Limited, in an ongoing legal dispute, insisting that its actions were lawful and preceded the multiple suits later filed by the company.

Background to the Dispute

The legal battle between Parallex Bank and FHT Mega Express spans multiple courts and centres on transactions dating back to 2023.

At the heart of the dispute is a sum of N7.15 billion deposited by FHT Mega Express with Parallex Bank in connection with international trade transactions involving letters of credit valued at about $7.31 million.
The disagreement has since resulted in parallel suits at the Federal High Court, the Lagos State High Court, and most recently, the Federal Capital Territory (FCT) High Court, Abuja.

While the Lagos State High Court did not grant the interim exparte order that FHT sought to obtain from it but struck out the FHT’s suit in November 2025, the FCT High Court however granted the same interim ex parte order (which was refused FHT in Lagos GUgu Court) in December 2025 directing the CBN and NDIC to freeze N7.15 billion linked to the bank, pending further hearing.
It is against this backdrop that allegations of abuse of court process have emerged.

Parallex Bank’s Position

Parallex Bank maintains that FHT abused the judicial process by the various multiple suits on the same subject matter and that it was, in fact, Parallex Bank that first approached the court in September 2025. According to court records referenced by the bank, Parallex instituted Suit No. FHC/L/CS/1774/2025 at the Federal High Court, Lagos, on September 4, 2025, seeking to recover over N4.5 billion it claims is owed by FHT Mega Express.

Insert notice of preliminary objection (this should be the edit of summons that the bank filed at the FHC)

The bank argues that the Federal High Court matter was already pending, with parties reportedly ordered to maintain the status quo, before FHT went on to file a separate suit at the Lagos State High Court seeking ex parte orders to freeze the bank’s funds. That Lagos suit was later struck out by Justice A.T. Muyideen, who also ordered FHT to publish the court’s decision in three national newspapers.

According to a source familiar with the bank’s internal briefings, Parallex described FHT as a “debtor customer” who is owing the bank on the Letters of credit transaction that the bank issued on behalf of the company. FHT had requested the bank to issue letters of credit for its transactions offshore and gave the bank several letters of undertaking committing to pay any differentials that would arise in the transaction due movement in foreign exchange rates. When the goods arrived, FHT was called upon by the Bank to pay the foreign exchange differentials in line with its undertaking and commitments to the bank which it refused to honor till date.

Parallex Bank insist that the subsequent filings by the company, including the fresh action at the FCT High Court, amounts to re-litigating the same issues in different jurisdictions. The bank insists that its recovery action at the Federal High Court was legitimate and remains the proper forum for resolving the dispute.

Parallex has also stated that, because the matter is sub-judice, it is restrained from making extensive public comments, adding that its legal team is closely monitoring developments.

FHT Mega Express’ Claims

FHT Mega Express, on the other hand, contends that it is the aggrieved party. In affidavits filed before the FCT High Court, the company said it deposited N7.15 billion with Parallex Bank as cash collateral for the issuance of letters of credit to support its international trade transactions.

According to FHT, the bank issued an indicative offer of banking facilities in June 2023, assuring that the letters of credit would be issued once funds were provided and that foreign exchange sourcing would commence immediately. The company alleged that Parallex delayed foreign exchange purchases, exposing the transaction to adverse exchange rate movements.

FHT further claimed that when the goods arrived in Nigeria, the bank demanded additional funds to cover what it termed “FX differential” and allegedly refused to release the bill of lading when the demand was not met. The company said this led to the goods being stranded and eventually auctioned by the Nigeria Customs Service.
Citing fears that the funds might not be recoverable if judgment is eventually awarded in its favour, FHT said it approached the FCT High Court to preserve the N7.15 billion through an interim freezing order pending full determination of the case.

The Way Forward

With conflicting narratives from both parties, the dispute now hinges on how the courts will assess the claims of debt recovery versus breach of trust. The substantive hearing at the FCT High Court which will hold on February 4, 2026, is expected to determine the next phase of the legal battle.