Paystack has announced the termination of co-founder Ezra Olubi due to what the company referred to as “significant negative reputational damage” caused by tweets he posted a decade ago that have resurfaced. The company stated that this decision was made in accordance with its contractual rights and followed proper procedures. They also confirmed that all financial obligations owed to him have been met.
In a statement, Paystack emphasised that the termination is not connected to the independent investigation currently underway regarding separate allegations of workplace misconduct. The company confirmed that the investigation is still active and is being conducted by the external law firm Aluko & Oyebode.
This update follows last week’s events in which Paystack suspended Ezra Olubi after allegations of sexual misconduct involving a subordinate emerged online, along with renewed circulation of old, sexually explicit tweets.
Paystack says it acted responsibly with Ezra Olubi’s sack
Paystack stated it took prompt action due to its responsibilities as a regulated financial institution. The company emphasised that the conduct of its executives can directly affect trust, governance, and regulatory confidence, making reputational risk a significant concern.
The resurfaced tweets increased public scrutiny regarding Olubi’s position, especially as regulators and customers are now more focused on leadership behaviour. Consequently, the company stated that it needed to separate the reputational fallout from the formal misconduct investigation to ensure fairness in both processes.
Leadership scandals in finance are important because regulators expect top executives to uphold standards that protect customers and build trust in the market. Paystack’s choice reflects a global trend where financial institutions are taking steps to handle potential regulatory issues before they arise.
What this means for Paystack and the broader ecosystem
The company is facing its first major leadership crisis since being acquired by Stripe in 2020. An internal source informed TechCabal that Olubi’s response to resurfaced tweets has raised concerns about his leadership capability during this scrutiny. His failure to acknowledge the seriousness of the posts has worried employees.
Read also: Ezra Olubi alleges wrongful dismissal after Paystack sack, says lawyers are looking at case
Olubi has challenged the termination process. In a blog post, he stated that his legal team is examining whether Paystack’s actions adhered to internal policies. He also asserted that the controversy does not reflect his character or conduct throughout his life, although he did not directly address the specific tweets.
As the independent investigation into the misconduct allegations progresses, Paystack is confronted with a crucial challenge regarding founder accountability, governance standards, and the stability of one of Africa’s leading fintech companies. The results of this investigation will influence how the company rebuilds trust and addresses regulatory expectations in the coming months.
