KudiWave Technologies Limited has raised concerns over the transfer of ₦750.37 million from its account with Palmpay Limited, questioning the legal basis for the transaction and the identity of the account that received the funds.
The company said the debit, valued at ₦750,369,439.04, was processed on July 15, 2026, with the narration “Judicial Adjustment,” without its prior authorisation or notification.
According to KudiWave, Palmpay has relied on an order of the Federal High Court in Lagos made on June 29, 2026, as the basis for the transaction.
KudiWave, however, said the same order was subsequently set aside, vacated and discharged by the court on July 22, 2026, after it challenged the circumstances surrounding the proceedings.
The company said it had filed a Motion on Notice on July 3 seeking to set aside the June 29 order and stay its execution.
According to KudiWave, the application was served on Palmpay and the Police and was heard on July 13 before being adjourned for ruling.
The disputed transfer was subsequently carried out on July 15, two days after the hearing and before the court delivered its ruling.
KudiWave said the timing of the debit raises questions over whether sufficient consideration was given to the fact that the underlying order was already being challenged before the same court.
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 the removal of restrictions placed on KudiWave Technologies Limited’s account.
The ruling followed the company’s argument that it had not been properly served with the processes leading to the June 29 decision.
In reviewing the matter, the court examined the circumstances surrounding the purported service and found merit in KudiWave’s application to have the earlier order vacated.
The court’s decision did not prevent the Police from pursuing criminal proceedings against any person or company where evidence of an offence exists.
The transaction history has also raised further concerns for KudiWave. The company noted that Palmpay moved the funds on July 11 and returned them to the account later that same day, before the money was moved out again on July 15. According to KudiWave, these movements occurred while the account remained frozen. It said that when the account was subsequently opened, it discovered that the funds had been moved around without its knowledge.
KudiWave said its concern is that the transaction involving ₦750.37 million had already been completed before the July 22 ruling was delivered.
The company is now seeking clarification from Palmpay on the exact legal authority relied upon when the debit was processed and whether the transaction complied strictly with the terms of the June 29 order.
Beyond the timing of the transaction, KudiWave has also raised questions over where the funds were transferred.
The company said the June 29 order contemplated the transfer of identified funds to a designated Police Recovery Account or an account associated with the Police Special Fraud Unit.
KudiWave alleged, however, that its account records indicate that the ₦750.37 million was transferred to an Access Bank business account.
It is therefore asking Palmpay to disclose the identity and ownership of the beneficiary account, the instruction authorising the transfer and the provision of the court order relied upon for the transaction.
The company also wants Palmpay to explain why the destination reflected in its transaction records allegedly differs from the account contemplated in the court proceedings.
KudiWave maintained that financial institutions have an obligation to comply with valid court orders but argued that such compliance must remain within the specific terms of the order being enforced.
The company said merely describing the transaction as a “Judicial Adjustment” does not resolve questions surrounding the beneficiary, destination and authority for the transfer.
The dispute originated from an earlier ex-parte order obtained by the Inspector-General of Police through the Police Special Fraud Unit, Ikoyi, which imposed a 90-day Post-No-Debit restriction on accounts belonging to several parties, including KudiWave Technologies Limited.
KudiWave said it subsequently discovered that the restriction was linked to an investigation by the Police Special Fraud Unit.
The company also alleged that during attempts 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 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 disputed transaction and is seeking the recovery of the ₦750.37 million as well as a full accounting of how the funds were transferred.
KudiWave said the matter raises broader questions around the execution of court orders by financial institutions, customer fund protection and the level of compliance required where an order affecting an account is already subject to an active judicial challenge.
