Issues as Paystack crisis claims co-founder Ezra Olubi’s job

Paystack, one of Africa’s fintech companies, has terminated the employment of its co-founder and chief technology officer, Ezra Olubi, following allegations of sexual misconduct made by a junior co-worker. The termination, which was made public by Olubi himself in a personal blog post on Saturday, November 23, 2025, followed an earlier suspension slammed on him […]

Paystack, one of Africa’s fintech companies, has terminated the employment of its co-founder and chief technology officer, Ezra Olubi, following allegations of sexual misconduct made by a junior co-worker.

The termination, which was made public by Olubi himself in a personal blog post on Saturday, November 23, 2025, followed an earlier suspension slammed on him mid-November.

Daily Trust reports that the crisis started after a social media user accused Olubi of abusive behaviour, prompting widespread attention and the resurfacing of several explicit tweets dating back more than a decade.

As online scrutiny intensified, Paystack suspended Olubi and disclosed that it had initiated a formal investigation, including plans to appoint an independent investigator to review the allegations and the company’s internal processes.

However, Olubi stated in his Saturday post that he was abruptly fired before the investigation reached any conclusion.

He claimed he was not granted a meeting or an opportunity to respond to the allegations prior to his termination, a move he argued was inconsistent with both the terms of his suspension and Paystack’s internal policies.

 

 

 

“My legal team is now reviewing the process that led to my purported termination, including its consistency with internal policies,” he wrote, adding that they would take “appropriate” legal steps. He said he would not comment further.

 

 

 

“On Saturday, 22 November 2025, I was informed that my employment had been terminated. This decision was taken before the supposed investigation was concluded, and without any meeting, hearing, or opportunity for me to respond to the issues raised, in clear contravention of the terms of the suspension and Paystack’s own internal policies,” he stated

 

 

 

Paystack reacts

 

 

 

Reacting to Ezra’s claims, Paystack, in a media statement, said it terminated its cofounder’s contract on the grounds of “significant negative reputational damage” caused by his resurfaced tweets.

 

 

 

The company says this decision is separate from the ongoing independent investigation into workplace misconduct allegations.

 

 

 

Paystack said it acted under its contractual rights and “followed due process” in making the decision, adding that it had met all financial obligations owed to Olubi.

 

 

 

“As a regulated company operating in multiple markets, we have a responsibility to act quickly when conduct has the potential to undermine trust.

 

 

 

“After reviewing the situation, we exercised our right under his contract and followed due process to end his employment,” the company said.

 

 

 

“This has no bearing and is separate from the independent investigation into the allegations of workplace misconduct, which remains ongoing. The review is being led by Aluko and Oyebode, the external law firm appointed by the Board. It is continuing independently, and we will share updates once it is complete,” the company added.

 

 

 

The incident has reignited calls for stronger governance frameworks in African startups, particularly around sexual harassment reporting, leadership accountability and organisational culture.

 

 

 

Paystack currently holds a B4 rating with a probability of default value of 0.436%, reflecting a moderate level of credit risk. Compared to peers like Flutterwave and Chipper Cash, Paystack ranks below average in terms of credit quality, though it maintains a favorable spread profile compared to OPay. Its risk profile has been improving, indicated by a spread tightening, but lags behind some competitors. This trajectory is shaped by both internal performance improvements and broader fintech sector dynamics, particularly its integration with Stripe.

 

 

 

Widespread Governance Gap

 

 

 

Writing on the issue legal icon, Olisa Agbakoba (SAN) in an article entitled “How Should Boards Handle Corporate Governance Crises? Lessons from Paystack on Crisis Response and Prevention”, said the Paystack situation is not an isolated incident but rather indicative of a widespread governance gap across the African corporate landscape.

 

 

 

Agbakoba said the Financial Reporting Council of Nigeria (FRC) guidelines and the Nigerian Code of Corporate Governance 2018 (NCCG 2018) establishes in Part A Principle 1 that the board and its members must act “with utmost good faith, in the best interest of the shareholders and other stakeholders while sustaining the prosperity of the Company.”