By Benson Daniel
PalmPay Limited has defended the transfer of N750.37 million from the account of Kudiwave Technologies Limited, saying the transaction was carried out in compliance with a valid order of the Federal High Court.
The fintech company was responding to allegations by Kudiwave that it unlawfully debited N750,369,439.04 from its account on July 15, 2026, under the narration “Judicial Adjustment.”
Kudiwave, through its solicitors, had alleged that the debit occurred weeks after the Federal High Court in Lagos lifted a Post No Debit restriction that had previously been placed on the account. The company said it neither authorised the transaction nor received prior notification before the funds were transferred.
The dispute dates back to April 2026, when the account was placed under a Post No Debit restriction following an order obtained by officers of the Special Fraud Unit in Ikoyi. Kudiwave subsequently challenged the restriction in court.
The Federal High Court, Lagos, later delivered a ruling on June 29, 2026, in a suit involving the Inspector General of Police, PalmPay and Kudiwave Technologies. Following the ruling, PalmPay confirmed that the restriction on Kudiwave’s account had been lifted.
However, the company said the subsequent transfer of the disputed funds was based on a separate directive contained in the same court proceedings.
PalmPay said the June 29 order directed it to disclose the account balance and transfer the identified funds to a designated Police Recovery Account. According to the fintech, the order remained valid and had not been set aside when the transfer was executed on July 15.
The company therefore rejected allegations that it had acted unlawfully or independently in moving the funds.
PalmPay’s Head of Marketing and Communications, Olorunfemi Hanson, said the company was legally required to comply with valid directives issued by courts of competent jurisdiction.
He explained that PalmPay did not initiate the transfer on its own and did not retain or benefit from the funds involved in the transaction.
The development follows a demand by Kudiwave’s lawyers for an explanation over the debit. The solicitors had argued that the withdrawal raised serious legal concerns, particularly because the earlier restriction on the account had been lifted by the court.
They also questioned how such a substantial amount could have been transferred after the order upon which the original restriction was based had been invalidated.
The lawyers further raised allegations of possible collusion involving PalmPay, officers of the Special Fraud Unit and other financial institutions, and called for an investigation into the circumstances surrounding the movement of the funds.
PalmPay, however, maintained that its actions were based strictly on the directives of the court and denied any suggestion of wrongdoing.
The fintech company also pointed to a July 22 letter sent to Kudiwave’s solicitors, in which it confirmed that the Post No Debit restriction had been removed following the Federal High Court’s ruling.
The company said its representatives participated in the court proceedings and that its appearance was reflected in the court records.
The dispute highlights the complex obligations faced by financial institutions when handling accounts subject to court orders, particularly where subsequent judicial directives affect funds that have previously been restricted.
For Kudiwave, the key issue remains whether the transfer was legally authorised after the court lifted the earlier restriction. For PalmPay, the position is that it was acting in obedience to a later and still valid court directive.
The company has reaffirmed its willingness to cooperate with the relevant authorities and other parties as the matter progresses, while insisting that it acted within the law.
The dispute could now depend on further legal proceedings or clarification from the court concerning the scope and effect of its orders relating to Kudiwave’s account and the disputed funds.
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