KudiWave Technologies Ltd. has sought clarification from PalmPay Ltd. over the transfer of N750.37 million from its account with the fintech company, questioning the destination of the funds and the court order relied upon to execute the transaction.
KudiWave said the transaction, valued at N750,369,439.04, appeared on its PalmPay account on July 15, 2026, with the description “Judicial Adjustment”, but was carried out without its authorisation or prior notification.
According to the company, PalmPay attributed the transaction to an order of the Federal High Court in Lagos issued on June 29, 2026, in proceedings involving the Inspector-General of Police.
KudiWave, however, said the same order was subsequently set aside, vacated and discharged by the court on July 22 after it challenged the circumstances under which the order was obtained.
The dispute arose from an investigation by the Police Special Fraud Unit (PSFU), Ikoyi, which had earlier secured an ex-parte order imposing a 90-day Post-No-Debit restriction on accounts belonging to several parties, including KudiWave.
The company said it later became aware of separate proceedings in which the police sought an order relating to funds standing to its credit with PalmPay.
The application came before Justice Ibrahim Ahmad Kala of the Federal High Court on June 29, with the court granting the relief sought by the police.
KudiWave subsequently filed an application on July 3 seeking to set aside the order and stay its execution, arguing that it had not been properly served with the processes that resulted in the June 29 decision.
According to the company, PalmPay and the police were served with the application before it was heard on July 13.
KudiWave said the matter was adjourned for ruling after the hearing, but two days later, on July 15, the N750.37 million transaction was processed on its account.
The Federal High Court subsequently ruled in KudiWave’s favour on July 22, setting aside the June 29 order and directing that restrictions placed on the company’s account be removed.
The company said the court examined the circumstances surrounding the purported service of the earlier processes on KudiWave and found merit in its application to have the order vacated.
It noted that the July 22 ruling did not prevent the police from pursuing criminal proceedings where evidence of an offence existed, but removed the June 29 order that had formed the basis of the dispute over its account.
KudiWave is now questioning whether the July 15 transfer was executed strictly in accordance with the terms of the earlier order.
The company also raised questions over movements involving the funds during the restriction period.
It alleged that PalmPay transferred the money on July 11 and returned it to the account later the same day before another transfer was made on July 15.
KudiWave said the movements took place while the account was under restriction and that it only became aware of the transactions after the account was reopened.
According to the company, the June 29 order provided for the transfer of identified funds to a Police Recovery Account or an account associated with the Police Special Fraud Unit.
KudiWave, however, alleged that records available to it indicated that the N750.37 million was instead transferred to an Access Bank business account.
The company said the alleged discrepancy had made the identity of the beneficiary and the authority for the transfer central to the dispute.
It is asking PalmPay to disclose the account that received the funds, the identity of the beneficiary, the instruction authorising the transaction and the specific provision of the court order relied upon.
KudiWave is also seeking an explanation of when PalmPay received the relevant court process and why the transfer was completed after the financial institution had, according to the company, been notified of the pending application challenging the June 29 order.
The company maintained that its concern was not with the obligation of financial institutions to comply with valid court orders, but whether the transaction carried out on its account corresponded with the specific terms of the order relied upon.
KudiWave also alleged that, while attempting to resolve the initial restriction placed on its account, its Company Secretary, Barrister Prince Oko, met officers of the Police Special Fraud Unit and that a N50 million payment was demanded to facilitate the removal of the restriction.
The company said it rejected the alleged demand.
The allegation has not been determined by a court.
KudiWave said it was considering further legal and regulatory action over the transaction and seeking recovery of the funds as well as a full reconciliation of how the N750.37 million moved from its account.
The dispute could draw attention to compliance procedures used by financial institutions when executing court orders affecting customer funds, particularly where the underlying order is being challenged before the courts.
Responding to the allegations, PalmPay categorically rejected claims that it unlawfully debited KudiWave’s account.
PalmPay maintained that the transaction complained of was carried out pursuant to a valid order of the Federal High Court.
KudiWave, however, insists that PalmPay should provide a clear account of the transaction, including an explanation of why the destination reflected in its records allegedly differs from the account contemplated in the court proceedings.
