Parallex Bank Secures Legal Victory as FCT High Court Dismisses N7.1 Billion Suit Over Debt Dispute

Logistics firm FHT Mega Express loses N7.1bn suit against Parallex Bank. The FCT High Court cites abuse of process and upholds the bank's debt recovery rights.

By: AXL Media

Published: May 1, 2026, 4:20 AM EDT

Source: Information for this report was sourced from Vanguard News

Dismissal of Litigation Based on Procedural Irregularities

The Federal Capital Territory (FCT) High Court has officially struck out a significant lawsuit brought against Parallex Bank Limited by FHT Mega Express Limited. The logistics firm had sought N7.1 billion in damages related to a N4.5 billion debt dispute. In its ruling on Friday, the court upheld the bank’s preliminary objection, determining that the firm's attempt to litigate in Abuja while a related case was already active in Lagos constituted a severe violation of judicial procedures.

Lifting of the N7.1 Billion Ex Parte Freeze Order

The legal battle saw a dramatic shift after FHT Mega Express had previously obtained an ex parte order to freeze Parallex Bank's funds with the Central Bank of Nigeria up to the amount of N7.1 billion. Parallex Bank successfully challenged this order, arguing that the logistics firm was attempting to bypass a pre-existing suit. With the dismissal of the case in its entirety, the freeze order has been vacated, and the court awarded costs of 500,000.00 against the logistics company.

Origins of the Conflict: Import Finance and Letters of Credit

The roots of the dispute trace back to September 2025, when Parallex Bank initiated its own legal action (Suit No. FHC/L/CS/1774/2025) at the Federal High Court in Lagos. The bank is seeking to recover N4.5 billion from FHT Mega Express, a debt reportedly stemming from Letters of Credit issued to finance various import transactions valued in millions of Euros. Justice Lewis Allagoa of the Lagos court had previously ordered all parties to maintain the status quo, a directive the FCT court noted was ignored by the logistics firm’s secondary filing.