KudiWave Technologies Limited has challenged a N750.37 million debit from its account with Palmpay Limited, raising questions over the destination of the funds and the court order relied on for the transaction.
The company said the transaction, valued at N750,369,439.04, appeared on its account on July 15, 2026, with the description “Judicial Adjustment,” but was carried out without its authorisation or prior notification.
KudiWave said Palmpay has attributed the transaction to an order of the Federal High Court in Lagos made on June 29, 2026, in proceedings involving the Inspector-General of Police.
However, the company 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 originated from an investigation by the Police Special Fraud Unit, Ikoyi, which had earlier secured an ex-parte order placing a 90-day Post-No-Debit restriction on accounts belonging to several parties, including KudiWave.
KudiWave 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 led to 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.
In arriving at the decision, the court examined the circumstances surrounding the service of the earlier processes on KudiWave.
The company said the court questioned whether the manner in which the processes were purportedly delivered was sufficient to bring the proceedings to its attention and found merit in its application to have the earlier order vacated.
While the July 22 ruling did not prevent the police from pursuing criminal proceedings where there was evidence of an offence, it removed the June 29 order that had formed the basis of the dispute over KudiWave’s account.
KudiWave is now questioning whether the July 15 transfer was executed strictly in accordance with the terms of the earlier order.
Records of activity on the account have also raised questions about movements involving the funds during the restriction period. KudiWave said Palmpay transferred the money on July 11 and returned it to the account later that same day, before another transfer was made on July 15.
The company noted that these movements took place while the account was frozen and said it only became aware of the transactions after the account was reopened.
The company said 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.
It alleged that records available to it instead indicate that the N750.37 million was transferred to an Access Bank business account.
KudiWave said the discrepancy has 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.
The company 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 KudiWave, been notified of the pending application challenging the June 29 order.
KudiWave 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.
The company 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 removal of the restriction.
KudiWave said it rejected the alleged demand. The allegation has not been determined by a court.
The company said it is considering further legal and regulatory action over the transaction and is seeking the recovery of the funds as well as a full reconciliation of how the N750.37 million moved from its account.
The dispute could also 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, maintaining that the transaction complained of was carried out pursuant to a valid order of the Federal High Court.
However, KudiWave insists that PalmPay must provide a clear account of the transaction, including why the destination reflected in its records allegedly differs from the account contemplated in the court proceedings.
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