Paystack Fired Co-founder Ezra Olubi.

It's important to note that Paystack emphasized this termination is entirely separate from an ongoing independent investigation into distinct allegations of workplace misconduct. That investigation remains active and is being handled by the external law firm Aluko & Oyebode.

This update follows events from last week, when Paystack initially suspended Ezra Olubi. This suspension occurred after allegations of sexual misconduct involving a subordinate surfaced online, coinciding with the renewed circulation of his old, sexually explicit tweets.

Paystack asserts it acted responsibly in Olubi's termination, highlighting its duties as a regulated financial institution. The company stressed that the conduct of its executives directly impacts trust, governance, and regulatory confidence, making reputational risk a serious concern. The resurfaced tweets intensified public scrutiny of Olubi's position, especially given the increased focus from regulators and customers on leadership behavior. Consequently, Paystack clarified its need to separate the reputational fallout from the formal misconduct investigation to ensure fairness in both processes.

Leadership scandals in the financial sector carry considerable weight because regulators expect top executives to uphold high standards that protect customers and foster market trust. Paystack's recent decision reflects a broader global trend where financial institutions are proactively addressing potential regulatory issues.

This marks Paystack's first major leadership crisis since its acquisition by Stripe in 2020. An internal source reportedly told TechCabal that Olubi's handling of the resurfaced tweets raised questions about his leadership capabilities during this period of intense scrutiny. His perceived failure to acknowledge the gravity of the posts has reportedly caused concern among employees.

Ezra Olubi, however, has challenged the termination process. In a blog post, he stated that his legal team is reviewing whether Paystack's actions align with internal policies. While he asserted that the controversy doesn't reflect his character or lifelong conduct, he did not directly address the specific content of the tweets.

As the independent investigation into the misconduct allegations continues, Paystack faces a critical challenge concerning founder accountability, governance standards, and the overall stability of one of Africa’s leading fintech companies. The outcomes of this investigation will undoubtedly play a crucial role in how Paystack rebuilds trust and navigates regulatory expectations in the coming months.