Paystack Fires Co-Founder Ezra Olubi as Corporate Fallout Escalates into Legal Battle

Paystack, the Nigerian financial technology company known for providing online and offline payment solutions across Africa, has entered one of the most turbulent chapters in its corporate history. What began as a quiet internal inquiry has erupted into a full-scale legal confrontation following the company’s decision to terminate the appointment of its co-founder, Ezra Olubi.

The move has shocked the African tech community, but the greater surprise is Ezra’s response. Rather than exiting quietly, he is pushing back forcefully. According to a report, the ousted executive insists the company’s action violates his rights, describing the decision in unequivocal terms: “The termination is unfair.”

The saga has shifted beyond old tweets and earlier suspensions. It now appears to be on track to become one of the most contentious corporate disputes African fintech has seen.

Ezra’s Response: A Legal Counter-Offensive

Until recently, Ezra had maintained public silence while social media pored over decade-old posts. However, once the termination letter arrived, his strategy changed decisively.

According to the report, he argues that Paystack failed to follow proper procedure in removing him from his position. His legal team claims that the termination was rushed and deviated from the terms of his contract.

This marks a strategic shift. Rather than addressing the allegations, Ezra is challenging the process, suggesting that the company may have breached contractual obligations. It is a classic legal approach: success does not require proving innocence, only demonstrating that the employer violated its own rules when attempting to dismiss him.

The Stripe Acquisition Factor

A key element in this unfolding dispute is the 2020 Stripe acquisition. When the US payments giant bought Paystack for $200 million, it initiated a complex set of agreements, including vesting schedules and specific clauses governing the removal of founders.

Legal experts such as Osita James Uche, Managing Partner at Blackcrest Law, note that post-acquisition agreements often include highly detailed definitions of “Cause,” the strict conditions under which a founder can be dismissed without compensation.

If Paystack dismissed him for “Cause” (Gross Misconduct):
Ezra could forfeit millions in unvested stock options.

If Ezra proves “Unfair Termination”:
He could win a significant settlement, arguing that the company undermined his equity position by acting on insufficient grounds.

This raises a critical question: do old tweets from 2013 legally amount to “Gross Misconduct” under the contract he signed with Stripe in 2020? His legal team appears convinced the answer is no.

A Divided Public: Misconduct or Corporate Overreach?

The controversy has polarised opinion online.

One camp argues that Paystack and Stripe acted to protect their brand, noting that modern corporate governance offers little tolerance for the explicit content allegedly linked to Ezra’s past posts.

The opposing camp insists the move resembles a witch hunt, warning that disciplining a founder over a digital history predating the company sets a dangerous precedent across the tech ecosystem.

What Comes Next?

The standoff now appears destined for a courtroom or a confidential arbitration process. Ezra has assembled a legal team and is reportedly “determined” to contest the company’s decision.

Paystack, meanwhile, seems prepared to sustain the legal risk, believing that retaining him posed a greater reputational threat. For the company, cutting ties may have been the only way to preserve its wider interests.

This dispute is no longer merely about a founder’s conduct. It is shaping up to be a landmark case that could redefine founder protections, the role of historical online behaviour in employment decisions, and the collision between Silicon Valley governance standards and Africa’s rapidly evolving tech landscape.

One thing is becoming clear: the once-united Paystack co-founder relationship has begun to fracture.