Public outrage continues to mount over PalmPay’s handling of a ₦241,000 erroneous transfer involving a Nigerian businesswoman, with consumer rights advocates and stakeholders calling on the Central Bank of Nigeria (CBN) and other regulatory agencies to investigate the fintech company’s dispute resolution process.
The controversy erupted after Mrs. Oyedeji shared an emotional video on social media detailing her unsuccessful efforts to recover ₦241,000 mistakenly transferred to another PalmPay user, a development that has reignited concerns about customer protection within Nigeria’s fast-growing fintech industry.
According to Mrs. Oyedeji, the incident occurred on May 8, 2026, when she intended to transfer ₦241,000 from her Moniepoint account to her own PalmPay wallet but accidentally sent the money to the wrong PalmPay account.
She said she immediately notified Moniepoint, which allegedly confirmed that the recipient’s PalmPay account had been frozen pending efforts to recover the funds. She was subsequently advised to approach PalmPay directly to complete the reversal process.
Mrs. Oyedeji claimed she visited PalmPay’s office at Okebola along Molete Road, Ibadan, where officials informed her that she needed to obtain a court order before the company could process the reversal. She said she complied with the instruction and secured the required court order but was allegedly subjected to weeks of delays, repeated visits and conflicting explanations, including being told she had been visiting the wrong branch.
Frustrated by what she described as degrading treatment, the businesswoman took to social media, accusing PalmPay of failing to assist her despite having complied with every requirement. Her video quickly gained traction online, with many Nigerians expressing sympathy and questioning the effectiveness of customer complaint resolution mechanisms within the country’s digital financial services sector.
The incident has prompted renewed calls for regulatory scrutiny of fintech operators, with stakeholders urging the CBN, the Federal Competition and Consumer Protection Commission (FCCPC), and other relevant agencies to examine whether existing consumer protection standards are being adequately enforced.
Consumer advocates argue that while erroneous transfer disputes are governed by established regulations, financial institutions must also ensure timely communication, transparency and efficient complaint management to preserve public confidence in Nigeria’s cashless economy. They contend that where investigations reveal lapses in customer service or regulatory compliance, appropriate sanctions should be considered to strengthen accountability across the fintech industry.
PalmPay Responds
In an unsigned response to the Alliance for True Investigative Media Strategies (ATIMS) after inquiries into the matter, PalmPay said it sympathises with Mrs. Oyedeji over the distress caused by the incident but maintained that it acted in accordance with applicable laws and regulatory requirements throughout the dispute resolution process. The company stated that after receiving the complaint, it immediately initiated its internal recovery process, contacted the beneficiary to obtain consent for a reversal, and temporarily restricted the beneficiary’s wallet as permitted under the Central Bank of Nigeria’s Guidelines on Instant (Inter-Bank) Electronic Funds Transfer Services. PalmPay explained that the beneficiary declined to authorise the reversal and that the regulatory framework permits such restrictions for only 14 days unless a valid court order is obtained within that period.
The fintech company further stated that although Mrs Oyedeji eventually obtained a court order, it was received about one month after the complaint was lodged, by which time the temporary restriction had expired, and the disputed funds were no longer available in the beneficiary’s wallet for immediate recovery. PalmPay said it has since complied with the court’s directive by placing a lien on the beneficiary’s wallet equivalent to the judgment sum, adding that any future credits into the wallet will be applied toward satisfying the court-ordered amount. The company emphasised that it remains committed to supporting the customer and handling disputes diligently, transparently and in strict compliance with legal, regulatory and judicial directives.
Despite PalmPay’s explanation, the case has continued to fuel public debate over whether Nigeria’s existing framework for resolving mistaken transfers sufficiently protects consumers and whether additional regulatory safeguards are needed to ensure customers are not left bearing the financial consequences of prolonged dispute resolution processes.
At the time of publication, the matter remains unresolved, with Mrs. Oyedeji continuing to seek the recovery of her ₦241,000 while public attention remains fixed on the outcome of the dispute.
