Co-founder Ezra Olubi Dismissal Followed Due Process
Paystack has formally addressed the circumstances surrounding the dismissal of its Co-founder and former Chief Technology Officer, Ezra Olubi, insisting that the company acted strictly within its contractual rights and followed all internal procedures before terminating his employment.
The development, which has stirred significant debate within Africa’s tech industry, comes as the fintech giant continues an independent probe into allegations of workplace misconduct.
In a statement shared with TechCabal on Monday, Paystack clarified that Olubi’s removal was a separate decision that had no bearing on the ongoing investigation.
The company also emphasized that it had fulfilled all financial obligations owed to the former executive before effecting the termination.
“As a regulated company operating in multiple markets, we have a responsibility to act quickly when conduct has the potential to undermine trust,” Paystack said.
“After reviewing the situation, we exercised our rights under his contract and followed due process to end his employment.
This has no bearing on the independent investigation into allegations of workplace misconduct, which remains ongoing.”
The company added that the review is being handled by the external legal firm, Aluko & Oyebode, on the instruction of its Board of Directors.
Paystack noted that the firm’s work is independent, and updates would be provided once the probe is completed.
Industry Reaction and Co-founder’s Response
The dismissal of one of Paystack’s most prominent founders has triggered intense conversation among stakeholders and the wider online community.
Many observers have questioned the timing of the termination, especially given that the independent investigation into misconduct claims is still underway.
Ezra Olubi, who co-founded Paystack in 2015 alongside Shola Akinlade, confirmed in a detailed post on his personal blog that he was removed from his position before the investigative process was concluded.
According to him, the decision was abrupt and inconsistent with his understanding of the company’s internal disciplinary policies.
“I was not given a meeting or an opportunity to respond before my contract was ended,” Olubi wrote.
He further alleged that the manner of dismissal appeared to contradict the terms of his suspension and violated the organisation’s internal procedures.
Olubi also disclosed that his legal team had begun reviewing possible next steps in response to what he described as an unfair employment action.
The Independent Review and Corporate Transparency
Paystack’s insistence that the termination of Olubi’s contract is distinct from the misconduct investigation signals the company’s attempt to protect institutional credibility and reassure customers, regulators and investors.
The company reiterated that the independent review being managed by Aluko & Oyebode remains ongoing and that it intends to remain transparent throughout the process.
The appointment of an external law firm is widely seen as a move to ensure impartiality, especially given the company’s size, influence, and regulatory exposure in multiple markets.
Analysts say the decision reflects the increasing scrutiny facing African fintechs, particularly as they scale across jurisdictions.
Legal experts note that companies operating across Africa’s digital financial space must comply with both local and international compliance frameworks.
This often includes strict governance structures and accountability mechanisms that guide executive behaviour.
The Rise of Paystack and Its Influence in Africa’s Digital Economy
Paystack’s journey from a Nigerian startup to one of Africa’s most valuable fintech companies has been widely documented.
Founded in 2015, the company quickly became one of the continent’s leading payment infrastructure providers, enabling online and offline businesses to process transactions seamlessly.
The firm hit global headlines in 2016 when it became the first Nigerian startup to secure an investment from Y Combinator.
The landmark deal helped position Nigeria’s tech ecosystem more prominently on the global stage and paved the way for more Silicon Valley-backed African startups.
In 2020, Paystack was acquired by global payments leader Stripe in a deal estimated at over $200 million — one of the largest exits ever recorded in African tech.
Since the acquisition, the company has expanded its operations and compliance footprint across several African markets, including Ghana, Kenya, South Africa, and Côte d’Ivoire.
Industry observers say this regional and international expansion increases the need for stronger internal governance.
Decisions involving senior executives, they argue, must be aligned with both regulatory demands and global compliance expectations.
Why the Dismissal Matters
Although Paystack has described Olubi’s removal as a contractual and procedural action, the situation has raised broader questions about governance in Africa’s fast-growing tech ecosystem.
Analysts highlight several reasons why the matter has attracted widespread attention:
Symbolic Value of Founders: Founders often represent the face and culture of a startup, and their dismissal—especially without public explanation—can prompt concerns about leadership stability.
Regulatory Pressures: As Paystack operates in multiple jurisdictions, any governance scandal could attract scrutiny from financial regulators who oversee payment services.
Investor Sensitivities: Paystack’s acquisition by Stripe means that decisions affecting founders are no longer purely local; global investors expect strong transparency.
Industry Precedent: The case could set a precedent for how African tech companies address internal disputes, misconduct allegations, and executive accountability.
For now, Paystack’s position remains firm: the termination stands, the investigation continues, and the company intends to release further details only upon the conclusion of the external review.
Olubi, on the other hand, appears prepared to challenge aspects of his dismissal, signalling a possible legal confrontation.
What is clear is that the situation has triggered an important debate about corporate governance, founder roles, and accountability in Africa’s maturing fintech ecosystem.
As the investigation proceeds, stakeholders across the continent will be watching closely to see how one of Africa’s most celebrated tech companies navigates this defining moment.
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