KudiWave Technologies Limited has demanded a full account of transactions carried out by PalmPay Limited on its account after discovering unexplained movements involving N750,369,439.04 while the account was under restriction and the underlying court order was already being challenged. The company said its records revealed that the funds were first moved from the account on July 11, 2026, returned the same day and subsequently taken out again on July 15 under the narration “Judicial Adjustment.” KudiWave said it became aware of the July 11 movement only after access to the account was restored, raising fresh concerns over transactions made on the account during a period when it was subject to a Post-No-Debit restriction. “PalmPay moved the money on July 11 and sent it back that same day. They 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,” KudiWave alleged. The July 15 debit came at a critical stage of the dispute over funds belonging to KudiWave. The company had filed an application before the Federal High Court in Lagos on July 3 challenging the June 29 order and seeking a stay of its execution. The application was heard on July 13 and adjourned for ruling, with KudiWave maintaining that PalmPay had already been served with the challenge and did not file a counter affidavit against it. The N750.37 million was removed from KudiWave’s account two days after the hearing. PalmPay has linked the July 15 transaction to the June 29 court order concerning KudiWave’s funds, saying the transfer followed the directive made in those proceedings. KudiWave disputes that this explanation settles the matter. Its position is that PalmPay still needs to account for the earlier movement recorded on July 11, explain the destination of the N750,369,439.04 and show that the final transfer corresponded with the account identified in the court process. The dispute followed an earlier ex parte order obtained through the Police Special Fraud Unit, Ikoyi, which resulted in restrictions being placed on several accounts, including KudiWave’s account with PalmPay, for a period of 90 days pending investigation. Further proceedings subsequently came before Justice Ibrahim Ahmad Kala of the Federal High Court, Lagos Judicial Division, under Suit No. FHC/L/CS/795/2026. On June 29, Kudiwave stated that the court granted an application concerning funds standing to the credit of KudiWave. The company later approached the court to challenge that decision, insisting that it had not been properly served with the processes that led to the order and had not been effectively brought before the court when the application was considered. Justice Kala delivered his ruling on July 22 and granted KudiWave’s application. The court set aside, vacated and discharged the June 29 order and directed the removal of restrictions placed on KudiWave’s account. In examining the circumstances of the earlier proceedings, the court considered how the processes were said to have been served on KudiWave. The ruling questioned whether leaving the documents at a gate without sufficient identification of the company’s specific address could reasonably have brought the proceedings to KudiWave’s attention. The court described the circumstances surrounding the service as “very curious.” KudiWave believes the ruling is significant to the wider dispute because the same court ultimately found sufficient grounds to undo the June 29 order after reviewing the circumstances in which it had been obtained. Although the July 22 ruling was delivered after the July 15 transfer, the company maintains that PalmPay had already been placed on notice of the challenge and that the application had been heard before the funds left the account. Beyond the timing, KudiWave is also questioning the destination of the N750,369,439.04. The company said the June 29 order contemplated the transfer of identified funds into a designated Police Recovery Account linked to the Police Special Fraud Unit. KudiWave’s account records, however, indicate that the funds were transferred to an Access Bank business account. This has prompted the company to demand disclosure of the beneficiary of the transfer and the authority relied upon in directing the money to that account. “If the court process identified where the funds were to be transferred, then the records must show that the money went to that destination. We are asking for a clear account of where the funds went and who received them,” KudiWave said. The company is also seeking an explanation for the July 11 transaction, including the instruction under which the money was mo
Don't miss out on breaking stories and in-depth articles.
