Paystack, a prominent financial technology company, has announced the termination of its co-founder, Ezra Olubi. The company cited “significant negative reputational damage” as the primary reason for this decision, linking it to sexually explicit tweets posted by Olubi a decade ago that recently resurfaced. Paystack affirmed that the termination was conducted in accordance with its contractual rights and established procedures, confirming that all financial obligations to Olubi have been duly met.

Crucially, Paystack clarified that Olubi’s termination is entirely separate from an independent investigation currently underway regarding allegations of workplace misconduct. This investigation remains active and is being managed by the external law firm Aluko & Oyebode. The announcement follows events from the previous week, during which Olubi was suspended after initial allegations of sexual misconduct involving a subordinate emerged online, alongside the renewed circulation of the problematic old tweets.

Paystack underscored its prompt action by stating its responsibilities as a regulated financial institution. The company emphasized that the conduct of its executives directly impacts trust, governance, and regulatory confidence, making reputational risk a significant concern. The resurfaced tweets intensified public scrutiny of Olubi’s position, especially given the increased focus by regulators and customers on leadership behavior. Consequently, Paystack deemed it necessary to manage the reputational fallout distinctly from the formal misconduct investigation, aiming to ensure fairness in both processes.

The company's decision reflects a broader trend within the financial sector, where institutions are proactively addressing potential regulatory issues. Leadership scandals in finance are particularly sensitive, as regulators expect top executives to uphold rigorous standards to protect customers and foster trust in the market.

This marks Paystack’s first major leadership crisis since its acquisition by Stripe in 2020. An internal source revealed that Olubi’s response to the resurfaced tweets, particularly his perceived failure to acknowledge the seriousness of the posts, raised concerns among employees regarding his leadership capabilities during a period of intense scrutiny.

Ezra Olubi, however, has challenged the termination process. In a blog post, he stated that his legal team is reviewing whether Paystack’s actions adhered to internal policies. While asserting that the controversy does not reflect his character or conduct throughout his life, he notably did not directly address the specific content of the resurfaced tweets.

As the independent investigation into the misconduct allegations continues, Paystack faces a critical challenge concerning founder accountability, governance standards, and maintaining the stability of one of Africa’s leading fintech companies. The outcomes of this ongoing investigation are expected to significantly influence how the company rebuilds trust and navigates regulatory expectations in the coming months.