KudiWave disputes ₦750m Palmpay debit, questions court order, beneficiary account

KudiWave Technologies Limited has challenged the transfer of ₦750,369,439.04 from its account with Palmpay Limited, questioning the legal basis for the transaction, the account into which the funds were transferred and the circumstances surrounding the court proceedings relied upon for the debit.

The company said the transaction was carried out on July 15, 2026, and appeared on its account statement with the narration “Judicial Adjustment.”

KudiWave alleged that the transfer was made without its authorisation or prior notification from Palmpay.

According to the company, Palmpay has relied on an order of the Federal High Court, Lagos Judicial Division, made on June 29, 2026, as the basis for the transaction.

KudiWave, however, said the order was subsequently set aside, vacated and discharged by the same court on July 22, 2026, following an application filed by the company challenging the circumstances under which the order was obtained.

The dispute began after the Inspector-General of Police, through the Police Special Fraud Unit, Ikoyi, obtained an ex-parte order in Motion No. FHC/L/MISC/470/2026 directing banks and other financial institutions to place restrictions on accounts belonging to several listed parties, including KudiWave Technologies Limited, for a period of 90 days pending investigation.

The restriction was subsequently placed on KudiWave’s account maintained with Palmpay.

KudiWave said it made attempts to determine the reason for the restriction and later discovered that the action was connected to an investigation by the Police Special Fraud Unit.

The company alleged that its Company Secretary, Barrister Prince Oko, subsequently visited the PSFU and met officers said to be handling the matter, including CSP Aliyu Hussaini Musa and Inspector Bolaji.

KudiWave further alleged that subsequent proceedings were commenced seeking orders concerning funds standing to its credit.

The proceedings were brought under Motion No. FHC/L/CS/795/2026.

According to the company, although the application involved the Inspector-General of Police and Palmpay, the relief sought substantially affected funds belonging to KudiWave.

The matter came before Justice Ibrahim Ahmad Kala of the Federal High Court, Lagos Judicial Division, on June 29, 2026.

The Police Special Fraud Unit was represented by counsel, while counsel also appeared for Palmpay. KudiWave was not represented during the proceedings.

The Police moved its application seeking an order concerning funds alleged to be suspected proceeds of crime, and the court granted the application as prayed.

KudiWave maintained that it was unaware of the proceedings and had not been properly served with the processes leading to the June 29 order.

After becoming aware of the order, the company filed a Motion on Notice dated and filed July 3, 2026, seeking, among other reliefs, an order setting aside or vacating the June 29 decision and a stay of execution.

KudiWave said the application was served on both Palmpay and the Police.

According to the company, Palmpay did not file a counter-affidavit opposing the application and did not appear to contest it when the motion was heard on July 13.

The court thereafter adjourned the matter for ruling.

KudiWave also drew attention to movements on the account during the period of the restriction. According to the company, Palmpay moved the funds on July 11 and returned them to the account the same day, before the money was taken out again on July 15. The company said the funds were being moved around without its knowledge while the account was frozen and that.

KudiWave said that while the ruling was still pending, ₦750,369,439.04 was transferred from its account on July 15, two days after the hearing of its application challenging the June 29 order.

The company said the timing of the transaction is one of the issues it wants Palmpay to explain, particularly because its challenge to the order had already been placed before the court.

On July 22, Justice Kala delivered his ruling on KudiWave’s application and set aside the June 29 order.

In considering the application, the court reviewed the circumstances surrounding the service of the processes on KudiWave.

According to the ruling cited by the company, the court examined the evidence concerning the alleged service and questioned how the leaving or dropping of the processes at a gate, without sufficient indication of KudiWave’s specific address, could reasonably have brought the application and hearing notice to the company’s attention.

The court described the circumstances surrounding the purported service as “very curious.”

Justice Kala held that the court had inherent jurisdiction to set aside its own decision in circumstances where such a decision was affected by fraud, misrepresentation or want of jurisdiction.

The court consequently ordered the setting aside, vacation and discharge of its June 29 order.

It also directed that restrictions placed on KudiWave Technologies Limited’s account be removed.

The ruling did not prevent the Police from commencing or continuing criminal proceedings against any individual or company found culpable of an offence.

KudiWave said its concern now extends beyond the fact that the money was transferred from its account to the destination of the funds.

The company alleged that the June 29 order contemplated the transfer of identified funds to a designated Police Recovery Account or Police Special Fraud Unit exhibit account.

It claimed, however, that its account statement shows that the ₦750,369,439.04 was transferred to an Access Bank business account.

KudiWave is therefore demanding an explanation of the legal authority under which the funds were allegedly sent to an account different from the account contemplated in the court order.

The company is also asking Palmpay to disclose who authorised the transaction, the precise court order relied upon, the date the institution received and acted on the order and the identity and ownership of the beneficiary account.

It further wants Palmpay to explain whether it was aware that the June 29 order was already being challenged before the court at the time the transfer was made and why KudiWave was not notified before more than ₦750m was removed from its account.

Palmpay has reportedly maintained that the transaction was carried out in compliance with the June 29 Federal High Court order.

KudiWave, however, argued that the existence of the order alone does not resolve the questions surrounding the transaction.

The company said the relevant issue is whether Palmpay acted strictly within the terms of the order and whether the destination and beneficiary of the transfer were expressly authorised by the court.

KudiWave maintained that its position is not that financial institutions should refuse to obey lawful court orders, but that such orders must be implemented strictly according to their terms.

It added that the subsequent decision of the Federal High Court to set aside the June 29 order has made the circumstances surrounding the transfer a matter requiring closer judicial and regulatory scrutiny.

The company said it is considering further legal and regulatory steps to recover the ₦750,369,439.04 and establish the roles of the institutions and individuals involved in the transaction.

KudiWave also said it is seeking a full accounting of the funds, including the transfer instruction, the beneficiary account, the relevant court processes received by Palmpay and the authority under which the transaction was executed.

The company maintained that until those questions are answered, the circumstances surrounding the ₦750.37m debit and the description of the transaction as a “Judicial Adjustment” remain disputed.