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KudiWave Technologies Limited has challenged the transfer of ₦750,369,439.04 from its account with Palmpay Limited, questioning the legal authority for the transaction and the destination of the funds.
The technology company said the transaction was recorded on July 15, 2026, under the narration “Judicial Adjustment,” without its authorisation or prior notification from Palmpay.
KudiWave said Palmpay has relied on an order of the Federal High Court in Lagos made on June 29, 2026, as the basis for the transaction.
The company, however, said the order was later set aside, vacated and discharged by the same court on July 22, 2026.
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According to KudiWave, the disputed transfer was carried out after it had already filed an application challenging the June 29 order and after the application had been heard by the court.
The company filed its motion on July 3, seeking to set aside the order and stay its execution. KudiWave said the application was served on both Palmpay and the Police before it was heard on July 13.
Two days later, on July 15, the ₦750.37 million was allegedly transferred from KudiWave’s account.
KudiWave also noted that Palmpay had moved the funds on July 11 and returned them to the account the same day before moving the money out again on July 15.
The company said the funds were being moved around while the account was frozen and that, when the account was subsequently opened, it discovered that the money had been moved around without its knowledge.
KudiWave said the timing of the transaction raises questions over why such a substantial transfer was executed while its challenge to the underlying court order was awaiting determination.
The Federal High Court, presided over by Justice Ibrahim Ahmad Kala, subsequently ruled on July 22 in favour of KudiWave’s application and set aside the June 29 order.
The court also directed that restrictions placed on KudiWave Technologies Limited’s account be removed.
In its ruling, the court examined the circumstances surrounding the service of the processes that resulted in the June 29 order and found merit in KudiWave’s complaint over the manner in which the proceedings had been brought to its attention.
KudiWave is also questioning the account into which the ₦750.37 million was transferred.
The company said the June 29 order contemplated the movement of the identified funds into a designated Police Recovery Account or Police Special Fraud Unit exhibit account.
It alleged, however, that its transaction records show that the funds were transferred to an Access Bank business account.
KudiWave is now demanding that Palmpay disclose the identity of the beneficiary account, the instruction authorising the transaction, the precise court order relied upon and the reason the destination of the funds allegedly differed from the account contemplated in the court proceedings.
The company also wants clarification on when Palmpay received the relevant court processes and whether the financial institution considered the pending application challenging the June 29 order before carrying out the transaction.
KudiWave maintained that its position does not challenge the obligation of financial institutions to comply with valid court orders.
It said the central issue is whether Palmpay acted strictly within the terms of the order it relied upon and whether that order expressly authorised the transfer to the beneficiary account reflected in KudiWave’s records.
The company is considering further legal and regulatory action aimed at recovering the ₦750,369,439.04 and establishing the responsibility of the parties involved in the transaction.
What You Should Know
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 financial institutions to place a 90-day Post-No-Debit restriction on accounts belonging to listed parties, including KudiWave Technologies Limited.
The restriction was subsequently applied to KudiWave’s account with Palmpay.
KudiWave said it later discovered that the restriction was connected to an investigation by the Police Special Fraud Unit after attempts to obtain further information about the action taken on its account.
The company alleged that during efforts to resolve the restriction, its Company Secretary, Barrister Prince Oko, met officers involved in the investigation and that a demand for ₦50 million was made to facilitate the removal of the restriction.
KudiWave said it rejected the alleged demand. The allegation has not been determined by a court.
Further proceedings were later commenced under Motion No. FHC/L/CS/795/2026 seeking orders concerning funds standing to KudiWave’s credit.
The application was granted by the Federal High Court on June 29, but KudiWave subsequently challenged the decision, arguing that it had not been properly served with the processes leading to the order.
Justice Kala ultimately granted KudiWave’s application on July 22, setting aside, vacating and discharging the June 29 order and directing that restrictions placed on the company’s account be removed.
The ruling did not prevent the Police from pursuing criminal proceedings against any individual or company where evidence of wrongdoing exists.
KudiWave’s current complaint centres on whether the ₦750.37 million transfer carried out before that ruling complied with the precise terms of the June 29 order and whether the funds were sent to the account authorised by the court.
