Published by Osasere Edomwonyi Ikpoba
PalmPay Limited has publicly rejected allegations that it unlawfully transferred or misappropriated funds belonging to KudiWave Technologies Limited, insisting that its actions were taken strictly in compliance with a valid and subsisting order of the Federal High Court in Lagos. The fintech company's statement comes amid intensifying public scrutiny and protests over the movement of N750,369,439.04 from KudiWave's account on July 15, 2026, under the narration "Judicial Adjustment".
In a signed statement from PalmPay Management, the company acknowledged that the situation has been difficult for KudiWave and its customers but firmly rejected any suggestion of financial wrongdoing. According to PalmPay, its handling of the funds was governed by an order from the Federal High Court, Lagos, in Suit No. FHC/L/CS/795/2026, filed by the Inspector General of Police against PalmPay Limited and another party. "PalmPay's actions in the matter were taken strictly in compliance with a valid and subsisting order of the Federal High Court, Lagos," the statement read. "PalmPay does not have the discretion to act outside the terms of a valid court order, regardless of the preferences of any party involved".
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. The police subsequently sought an order relating to funds standing to KudiWave's credit with PalmPay. Justice Ibrahim Ahmad Kala of the Federal High Court heard the application on June 29, 2026, with the court granting the relief sought by the police. The court record stated that there was "no appearance for the 2nd Respondent despite service of the application and hearing notice at its registered address," referring to KudiWave.
However, KudiWave maintains that it became aware of the order on July 2 and immediately 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. The matter was adjourned for ruling after the hearing. Two days later, on July 15, the N750,369,439.04 transaction was processed on KudiWave's account.
The Federal High Court subsequently ruled in KudiWave's favour on July 22, setting aside, vacating and discharging 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. Justice Kala questioned whether leaving documents at a gate, without sufficient indication of the company's specific address, could reasonably have brought the proceedings to KudiWave's attention, describing the circumstances surrounding the purported service as "very curious". The ruling also recognised the court's inherent jurisdiction to set aside its own order where circumstances warrant such intervention.
KudiWave has also raised questions about other movements involving the funds during the restriction period. According to the company, account records show that the funds were transferred on July 11 and returned to the account later that same day, before another transfer was recorded on July 15. The company said the transactions took place while the account was restricted and that it only became aware of the movements after access to the account was restored. "PalmPay moved the money on July 11 and sent it back that same day. They then took it out again on July 15. When the account was opened, we saw how the money had been moved around while the account was frozen and we were not aware of it," the company said.
The destination of the funds has also become a major point of contention. KudiWave 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. However, the company alleged that records available to it instead indicate that the N750,369,439.04 was transferred to an Access Bank business account. The company's transaction statement showed the debit on July 15 at 3:38:31am, with the narration: "Judicial Adjustment – Cash_Access Bank_0552 BUSINESS_ACCOUNT". KudiWave's Company Secretary, Prince Oko Kalu, told protesters that "KudiWave's position is that the money did not go into the Police Microfinance Bank account expressly identified in the June 29 court order".
KudiWave is now demanding answers to three central questions: who authorised the transfer, where the money went, and why it had not been returned after the order was set aside. The company wants 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's solicitors, Onwumere & Co, made the same allegations in a July 29 letter to PalmPay, demanding the immediate reversal of the N750,369,439.04, with interest at 21 per cent per annum from July 15 until full payment.
The protest escalated on September 2, 2026, when KudiWave staged a demonstration at PalmPay's office on Opebi Road, Ikeja, Lagos, demanding explanations over the whereabouts of the money and calling on the police to investigate the circumstances surrounding the transfer. The company is also questioning the timing of the transfer, noting that it occurred two days after the Federal High Court had heard its application challenging the order. PalmPay, however, warned that it would not ignore inaccurate claims and said it was prepared to pursue any misleading statements made by individuals or organisations through the appropriate legal and regulatory channels. The company urged the public to rely on verified information and allow the legal process to run its course, adding that the matter is still before the court.
The case has also drawn attention to the conduct of law enforcement. KudiWave has accused the police of demanding a N50 million bribe to lift the restriction on its account. The law firm representing KudiWave further alleged that the circumstances surrounding the transaction raised questions about possible collusion involving PalmPay, certain officers of the Special Fraud Unit and other financial institutions. It called for an investigation into how such a substantial sum could have been withdrawn after the court had invalidated the order upon which the original restriction was based. Earlier, Legit.ng had reported that PalmPay was planning to expand to four African markets, including South Africa, Côte d'Ivoire, Uganda, and Tanzania, as it continued to process over 15 million transactions daily across all markets in the first quarter of 2025. The company had earlier launched in Ghana and Kenya.
The dispute over the N750 million continues to raise fundamental questions about the intersection of court orders, regulatory compliance, and the protection of customer funds in Nigeria's rapidly growing fintech sector. For KudiWave, the fight is about recovering funds it says were taken unlawfully. For PalmPay, it is about defending its reputation as a licensed financial institution that must comply with court orders. The court will ultimately have the final say.
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