One of Africa’s largest unicorns, Flutterwave, has been under fire on social media since allegations of insider trading, sexual harassment and perjury hit the Nigerian payment infrastructure provider.
The reactions follow the allegations contained in an investigative report published on Tuesday by David Hundeyin, the Editor of West Africa Weekly.
The report accused Flutterwave’s Co-Founder and Chief Executive Officer, Olugbena Agboola, of holding onto the stock options offered to a former employee, adding that others were made to sell their stock options below their values to an investment vehicle controlled by him.
Additionally, the report said Agboola and Flutterwave's Chief Commercial Officer, Mr Ife Orioke, abused their position of power to have inappropriate sexual relationships with the company’s female employees.
In addition, the report alleged that Agboola created a phantom Flutterwave Chief Technology Officer, Greg Agboola, who needed to be given 10% of Flutterwave’s shareholdings from Co-Founders, Iyinoluwa Aboyeji and Adeleke Adekoya’s shareholdings.
Moreover, the CEO was said to have built Flutterwave while he was still the Head of Digital Factory & Innovation at Access Bank PLC, a Nigerian local lender.
In the report, Hundeyin alleged that the United States Securities and Exchange Commission (SEC) in 2018 got wind of the said insider trading practice and summoned Agboola, Aboyeji and the CEO of Access Bank, Herbert Wigwe, to a hearing.
According to the media report, the SEC did not confirm or deny the alleged insider trading but rejected a US Freedom Of Information Act (FOIA) request submitted by the journalist, citing privacy concerns.
Hundeyin wrote in the report: “In early 2018, news about this unholy arrangement got to the United States Securities and Exchange Commission (SEC), which has jurisdiction over the Delaware-registered corporation. Under US law, a conviction for insider trading carries a criminal sentence of up to 20 years in prison.
“According to several sources, GB [Agboola], Iyin [Aboyeji] and—for some reason—Herbert Wigwe flew to the Washington DC for an SEC hearing where they allegedly testified under oath that GB never worked simultaneously at Flutterwave and Access Bank.”
The report said Agboola for “at least two years had free reign” to use the lender’s assets to “benefit Flutterwave without the knowledge of Access Bank or most external Flutterwave stakeholders.”
Finance Magnates reached out to Flutterwave for a comment on these allegations but is yet to get a response as of press time.
However, Aboyeji, who resigned from the start-up
Startup
A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c
A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c
Read this Term in 2018, has made several tweets to clear his name.
The Co-Founder of Andela, who attacked the journalist for not reaching out to him for a comment, said Access Bank’s leadership were informed about Flutterwave.
The ex-CEO of Flutterwave also said the company maintained the “highest ethical standards” while he led the fintech
Fintech
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Read this Term company.
The ethical questions are did the leadership of Access Bank know GB and Leke were working on Flutterwave and I can confirm yes. Was their phased exit from access bank disclosed to investors and the answer is yes. Even I incorporated Flutterwave while being at Andela. https://t.co/1y01a7PNW7
— iyin.eth (@iaboyeji) April 13, 2022
By my hand I incorporated Flutterwave May 2, 2016 (while I was still at Andela by the way) and by my hand I resigned with a letter dated Oct 12, 2018. Every single necessary evidence has been preserved because I conducted myself with the highest integrity.
— iyin.eth (@iaboyeji) April 13, 2022
Again I am painstakingly separating the actions of any individual from the corporate actions of a company I co-founded and built. While I was at the helm of Flutterwave we had the highest ethical standards. This is important for my stakeholders to know. Period.
— iyin.eth (@iaboyeji) April 13, 2022
Tech Leaders React
Leaders in the emerging Nigerian tech ecosystem have started reacting to the report.
In a Twitter thread, Jason Njoku, the Founder of Iroko TV, an on-demand web TV platform, wrote that “mad money rush” was coming into the industry. Njoku restated the importance of the media in helping to sustain the Nigerian tech ecosystem.
Telling these stories are actually important in how we grow our ecosystem into self sustainability. In the long term thats all that matters. What we have now is hypebole to an extreme. Been saying it for years. Hot emerging market money poured into 🇳🇬 with zero checks & balances.
— JasonNjoku (@JasonNjoku) April 13, 2022
On his part, Ikpeme Neto, the Founder of health-tech start-up, Well Health, described journalists as “a good check and balance mechanism” for the industry.
Startups are hard and have outsized rewards, founders are human so will ere. Journalists and whistleblowers are a good check and balance mechanism. Strive to be fair and do your best. Use the courts where needed and let the law do its job. Drink water. We will all be alright.
— Neto (@docneto) April 13, 2022
Matt Flannery, the Co-Founder and CEO of Branch.co, said there is more to come.
The #flutterwave scandal is just beginning. There's more to come. This could cast a large shadow over Nigerian tech and valuations. https://t.co/cKMv2RzZkP
— Matt Flannery (@mattflannery) April 12, 2022
The Case of Bento Africa
The latest report comes less than a month after a Nigerian tech publication, TechCabal, published a report alleging a vile workplace culture at Bento Africa, a Nigerian payroll startup.
The report, based on the testimonies of former employees of Bento Africa, accused Ebun Okubanjo, the Co-Founder and Chief Executive Officer, among other things, of running the start-up with an iron fist while verbally abusing his employees.
The company’s Board of Directors, in its reaction, asked Okubanjo to step back from people operations in the company.
“We are reviewing the HR and people practice and guidelines at Bento and will work with HR consultants and the company’s in-house team to make sure that it is reflective of human values that drive sustainable performance,” the board had said in an email seen by the outlet.
One of Africa’s largest unicorns, Flutterwave, has been under fire on social media since allegations of insider trading, sexual harassment and perjury hit the Nigerian payment infrastructure provider.
The reactions follow the allegations contained in an investigative report published on Tuesday by David Hundeyin, the Editor of West Africa Weekly.
The report accused Flutterwave’s Co-Founder and Chief Executive Officer, Olugbena Agboola, of holding onto the stock options offered to a former employee, adding that others were made to sell their stock options below their values to an investment vehicle controlled by him.
Additionally, the report said Agboola and Flutterwave's Chief Commercial Officer, Mr Ife Orioke, abused their position of power to have inappropriate sexual relationships with the company’s female employees.
In addition, the report alleged that Agboola created a phantom Flutterwave Chief Technology Officer, Greg Agboola, who needed to be given 10% of Flutterwave’s shareholdings from Co-Founders, Iyinoluwa Aboyeji and Adeleke Adekoya’s shareholdings.
Moreover, the CEO was said to have built Flutterwave while he was still the Head of Digital Factory & Innovation at Access Bank PLC, a Nigerian local lender.
In the report, Hundeyin alleged that the United States Securities and Exchange Commission (SEC) in 2018 got wind of the said insider trading practice and summoned Agboola, Aboyeji and the CEO of Access Bank, Herbert Wigwe, to a hearing.
According to the media report, the SEC did not confirm or deny the alleged insider trading but rejected a US Freedom Of Information Act (FOIA) request submitted by the journalist, citing privacy concerns.
Hundeyin wrote in the report: “In early 2018, news about this unholy arrangement got to the United States Securities and Exchange Commission (SEC), which has jurisdiction over the Delaware-registered corporation. Under US law, a conviction for insider trading carries a criminal sentence of up to 20 years in prison.
“According to several sources, GB [Agboola], Iyin [Aboyeji] and—for some reason—Herbert Wigwe flew to the Washington DC for an SEC hearing where they allegedly testified under oath that GB never worked simultaneously at Flutterwave and Access Bank.”
The report said Agboola for “at least two years had free reign” to use the lender’s assets to “benefit Flutterwave without the knowledge of Access Bank or most external Flutterwave stakeholders.”
Finance Magnates reached out to Flutterwave for a comment on these allegations but is yet to get a response as of press time.
However, Aboyeji, who resigned from the start-up
Startup
A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c
A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is c
Read this Term in 2018, has made several tweets to clear his name.
The Co-Founder of Andela, who attacked the journalist for not reaching out to him for a comment, said Access Bank’s leadership were informed about Flutterwave.
The ex-CEO of Flutterwave also said the company maintained the “highest ethical standards” while he led the fintech
Fintech
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl
Read this Term company.
The ethical questions are did the leadership of Access Bank know GB and Leke were working on Flutterwave and I can confirm yes. Was their phased exit from access bank disclosed to investors and the answer is yes. Even I incorporated Flutterwave while being at Andela. https://t.co/1y01a7PNW7
— iyin.eth (@iaboyeji) April 13, 2022
By my hand I incorporated Flutterwave May 2, 2016 (while I was still at Andela by the way) and by my hand I resigned with a letter dated Oct 12, 2018. Every single necessary evidence has been preserved because I conducted myself with the highest integrity.
— iyin.eth (@iaboyeji) April 13, 2022
Again I am painstakingly separating the actions of any individual from the corporate actions of a company I co-founded and built. While I was at the helm of Flutterwave we had the highest ethical standards. This is important for my stakeholders to know. Period.
— iyin.eth (@iaboyeji) April 13, 2022
Tech Leaders React
Leaders in the emerging Nigerian tech ecosystem have started reacting to the report.
In a Twitter thread, Jason Njoku, the Founder of Iroko TV, an on-demand web TV platform, wrote that “mad money rush” was coming into the industry. Njoku restated the importance of the media in helping to sustain the Nigerian tech ecosystem.
Telling these stories are actually important in how we grow our ecosystem into self sustainability. In the long term thats all that matters. What we have now is hypebole to an extreme. Been saying it for years. Hot emerging market money poured into 🇳🇬 with zero checks & balances.
— JasonNjoku (@JasonNjoku) April 13, 2022
On his part, Ikpeme Neto, the Founder of health-tech start-up, Well Health, described journalists as “a good check and balance mechanism” for the industry.
Startups are hard and have outsized rewards, founders are human so will ere. Journalists and whistleblowers are a good check and balance mechanism. Strive to be fair and do your best. Use the courts where needed and let the law do its job. Drink water. We will all be alright.
— Neto (@docneto) April 13, 2022
Matt Flannery, the Co-Founder and CEO of Branch.co, said there is more to come.
The #flutterwave scandal is just beginning. There's more to come. This could cast a large shadow over Nigerian tech and valuations. https://t.co/cKMv2RzZkP
— Matt Flannery (@mattflannery) April 12, 2022
The Case of Bento Africa
The latest report comes less than a month after a Nigerian tech publication, TechCabal, published a report alleging a vile workplace culture at Bento Africa, a Nigerian payroll startup.
The report, based on the testimonies of former employees of Bento Africa, accused Ebun Okubanjo, the Co-Founder and Chief Executive Officer, among other things, of running the start-up with an iron fist while verbally abusing his employees.
The company’s Board of Directors, in its reaction, asked Okubanjo to step back from people operations in the company.
“We are reviewing the HR and people practice and guidelines at Bento and will work with HR consultants and the company’s in-house team to make sure that it is reflective of human values that drive sustainable performance,” the board had said in an email seen by the outlet.
