Techrectory
The African fintech ecosystem is reeling from the news that Paystack, one of Nigeria’s most celebrated technology companies, has terminated the employment of its co-founder and former Chief Technology Officer, Ezra Olubi. The decision, which Paystack maintains was rooted in reputational damage, has been swiftly challenged by Olubi, who labels the dismissal as unfair and a violation of internal company procedures.
This high-profile corporate clash comes amid recent allegations of sexual misconduct and the public resurfacing of Olubi’s decade-old, highly controversial social media posts.
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Paystack Cites Reputational Damage for Immediate Action
The termination was confirmed to be effective Saturday, November 22, 2025. In its official statement, Paystack stated that the decision was based on “significant negative reputational damage” caused by Olubi’s recently resurfaced public tweets, which they deemed inconsistent with the company’s values and the standard expected of its leadership.
The company, which was acquired by the global payments giant Stripe in 2020, emphasized its commitment to corporate governance and speed:
“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, and we have met all financial obligations required.”
Crucially, Paystack insists that the termination is separate from an independent investigation into allegations of workplace misconduct, which the company says remains ongoing.
Olubi Contests Due Process and Initiates Legal Review
The company’s position on due process is directly contradicted by Olubi’s account. Breaking his silence via a blog post, Olubi revealed he was informed of his termination before the supposed independent investigation—which he engaged with fully—was concluded.
He claims the decision was executed hastily:
“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.”
Olubi, who played a central role in instituting Paystack’s operational systems and processes, has retained his legal team to review the termination process. This move signals a potentially protracted legal battle, focusing less on the veracity of the allegations and more on whether Paystack, under the ownership of Stripe, adhered to the strict contractual and procedural requirements set out in his employment terms.
The Broader Governance and Acquisition Question
This incident has ignited a critical debate across the African tech ecosystem, raising questions on founder accountability and post-acquisition governance:
Contractual Interpretation: Legal experts are scrutinizing the application of “reputational damage” clauses. Can an employer retroactively apply such clauses to public posts that were discoverable and existed before the employment contract (or the Stripe acquisition) took effect?
Founder Influence: Following the 2020 Stripe acquisition, the specific nature of Olubi’s contract—whether his continued role was voluntary or mandatory, and his remaining shareholding—will significantly influence the legal proceedings and the board’s capacity to make such a singular decision.
Ecosystem Accountability: The case is being watched closely as a litmus test for accountability in the African startup landscape, where founders often enjoy outsized influence. Paystack’s handling of this, particularly in a year marked by other public compliance and legal challenges, will define the perception of its internal culture and corporate maturity.
Olubi’s legal challenge aims to prove that by terminating his contract prematurely and without a hearing, Paystack violated the internal policies he helped establish, setting the stage for a dramatic corporate and legal showdown in the African fintech sector.
Techrectory with Agency Report.
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