KudiWave Technologies Limited has asked PalmPay Limited to explain how N750,369,439.04 was moved from its account while a dispute over the account was already before the Federal High Court in Lagos.
The technology company is also seeking details of where the money eventually went, after its account records showed that the funds were transferred to an Access Bank business account despite court proceedings referring to a designated Police Recovery Account.
The dispute dates back to an ex parte order obtained through the Police Special Fraud Unit, Ikoyi, which placed restrictions on several accounts, including KudiWave’s account with PalmPay, for 90 days pending investigation.
KudiWave later became aware of further proceedings under Suit No. FHC/L/CS/795/2026 concerning funds standing to its credit.
On June 29, 2026, Justice Ibrahim Ahmad Kala of the Federal High Court in Lagos granted an application affecting the funds in the account.
KudiWave challenged the decision after maintaining that it had not been properly served with the processes leading to the order.
The company filed its application on July 3, asking the court to set aside the June 29 order and stay its execution.
The application was heard on July 13 and the matter was adjourned for ruling.
KudiWave said PalmPay had been served with the application before the hearing and did not file a counter affidavit against the challenge.
Two days after the matter was heard, N750,369,439.04 was taken from the company’s account on July 15 under the narration “Judicial Adjustment.”
KudiWave said the transaction was carried out without its authorisation and without prior notice.
Its account records also revealed an earlier movement of the funds on July 11.
The company said the money was moved from the account on that date and returned the same day before being taken out again on July 15.
KudiWave said it was not aware of the July 11 movement when it happened and only discovered the transaction after access to the account was restored.
The company is now asking PalmPay to provide a full record of what happened on both dates and identify the instruction behind each movement.
“Our concern is to know exactly what happened to our money. The records should show who authorised the transactions, where the funds were sent and who received them,” KudiWave said.
The legal position changed on July 22 when Justice Kala granted KudiWave’s application challenging the June 29 order.
The court set aside, vacated and discharged the earlier order and directed that restrictions placed on the company’s account be removed.
During consideration of the application, the court examined how the processes leading to the June 29 order were purportedly served on KudiWave.
The ruling questioned whether leaving the documents at a gate without properly identifying the company’s specific address could reasonably have brought the proceedings to its attention.
The court described the circumstances surrounding the service as “very curious.”
Although the ruling was delivered seven days after the July 15 transfer, KudiWave maintains that PalmPay had already been placed on notice that the June 29 order was under challenge before the money was moved.
The company also considers the destination of the funds a major part of the dispute.
KudiWave said the June 29 proceedings contemplated the transfer of identified funds to a designated Police Recovery Account linked to the Police Special Fraud Unit.
Its records, however, show the N750,369,439.04 going to an Access Bank business account.
This has prompted KudiWave to demand the identity of the beneficiary account and the legal instruction relied upon in making the transfer.
“If a particular destination was identified in the court process, then there should be a clear record showing that the money went there. That is one of the explanations we are asking for,” the company said.
KudiWave has also noted that during earlier attempts to resolve the restriction on its account, its Company Secretary, Barrister Prince Oko, met officers of the Police Special Fraud Unit, including CSP Aliyu Hussaini Musa and Inspector Bolaji.
KudiWave said a demand for N50 million was made by officers of the Police Special Fraud Unit to facilitate the removal of the restriction, but the company declined the request, maintaining that no such payment formed part of the court process affecting its account.
The company is now seeking a full reconciliation of every transaction carried out on the account during the restriction period and is considering further legal and regulatory action over the N750.37 million.
For KudiWave, the unresolved issues remain the movement of the funds on July 11, the transfer made on July 15, the identity of the beneficiary and whether the money was sent to the destination contemplated in the court proceedings.
Until those issues are fully explained, the company maintains that serious questions remain over how more than N750 million was moved from its account while the underlying court dispute was still being contested.
Meanwhile, PalmPay Limited has denied allegations by Kudiwave Technologies Limited that it unlawfully debited N750,369,439.04 from the company’s account.
The company, in its response, insisted that the transfer was carried out in compliance with a subsisting order of the Federal High Court.
The statement from Palmpay says:
“The transfer referenced was made on July 15, 2026, in compliance with a subsequent court order of the Federal High Court in Suit No. FHC/L/CS/795/2026, made on June 29, 2026, which directed PalmPay to disclose the account balance and transfer the identified funds to a designated Police Recovery Account.
“At the time the transfer was effected, the court order remained valid and had not been set aside. PalmPay therefore acted in compliance with a binding directive of the Federal High Court,” the statement read.
PalmPay further stated that it neither initiated the transfer on its own nor retained or benefited from the funds.
“PalmPay did not initiate the transfer independently, nor did the company retain or benefit from the funds,” it said.
