PalmPay Limited has rejected allegations that it unlawfully removed N750.37 million from the account of Kudiwave Technologies Limited, saying the transaction was carried out in line with a valid Federal High Court order.
The dispute centres on a transaction of N750,369,439.04, which was transferred from Kudiwave’s account on July 15, 2026, with the description “Judicial Adjustment.”
Kudiwave, through its lawyers, Tony Eseigbe & Co., alleged that PalmPay carried out the transaction without the company’s approval or prior notice. The company also questioned why the money was transferred after a previous restriction on its account had been lifted by the court.
The account had earlier been placed under a Post-No-Debit restriction following an application involving officers of the Special Fraud Unit in Ikoyi. Kudiwave maintained that the Federal High Court later ordered that the restriction be removed.
Its lawyers argued that PalmPay’s subsequent action raised concerns about how the funds could have been moved after the earlier restriction was cancelled.
The law firm also called for an investigation into the circumstances surrounding the transaction, suggesting that the matter could involve several parties, including financial institutions and officers connected to the investigation.
PalmPay, however, has presented a different account of what happened.
In a letter dated July 22, 2026, the fintech confirmed that it had lifted the Post-No-Debit restriction following a ruling delivered by Justice Ibrahim Kala of the Federal High Court in Lagos on June 29, 2026.
The case, identified as Suit No. FHC/L/CS/795/2026, involved the Inspector General of Police, PalmPay and Kudiwave Technologies.
PalmPay said it complied with the court’s decision to remove the restriction. However, the company explained that the removal of the restriction did not cancel a separate directive contained in the same legal proceedings.
According to PalmPay, the June 29 court order also directed the company to disclose the balance in the account and transfer identified funds into a designated Police Recovery Account.
PalmPay said the N750.37 million transfer was therefore made on July 15 pursuant to that subsequent directive.
The fintech stressed that the order remained valid at the time the transfer was carried out and had not been overturned by another court.
“PalmPay therefore acted in compliance with a binding directive of the Federal High Court,” the company said.
The company also denied benefiting from the money or independently deciding to move it. It explained that, as a regulated financial institution, it is required to follow lawful instructions issued by courts with proper jurisdiction.
Kudiwave’s lawyers, meanwhile, had warned that continued restrictions on the company’s funds could lead to legal action. They claimed the inability to access the money had affected Kudiwave’s business operations, financial commitments and overall commercial activities.
The disagreement therefore appears to centre on the interpretation and implementation of the court’s orders rather than PalmPay simply deciding to withdraw the funds on its own.
PalmPay has maintained that it acted within the law and remains ready to cooperate with the relevant authorities and parties involved in the matter.
The dispute highlights the importance of court orders in financial transactions and the responsibilities placed on fintech companies and other regulated institutions when handling disputed funds.
As both sides maintain different positions, the legal process will determine how the conflicting claims surrounding the N750.37 million transfer are ultimately resolved.
