Marasoft Pay Saga: A Fintech’s Descent into Chaos

In October 2024, employees at Marasoft Pay, a Nigerian fintech operating in Nigeria and Kenya, felt a wave of relief when two months of overdue salaries were finally paid. But that relief quickly turned to despair when their accounts—and even the accounts of those they had transferred money to—were frozen within days. The funds, employees later learned, had been flagged as stemming from a fraudulent source, sparking a scandal that highlighted operational lapses and ethical concerns within the company.


The Initial Glitch

The crisis began on October 16, 2024, when a technical glitch occurred in Marasoft’s Flutterwave wallet. This error gave the company unauthorized access to over ₦84 million ($54,000)—far more than its available balance. Leveraging this glitch, Emmanuel Marakwe-Ogu, Marasoft’s CEO, initiated 102 withdrawals in less than 12 hours. Transaction records linked these withdrawals to Marakwe-Ogu’s phone number and bank verification number (BVN).

The timing was notable: just a week earlier, employees had stopped working due to frustration over unpaid salaries, and Marasoft had paused operations. Despite this, the company continued processing transactions in the background.


A Desperate Solution with Dire Consequences

Between October 16 and 17, Marakwe-Ogu used the funds to pay ₦35 million in overdue salaries. However, these payments did not come from the company’s designated human resources account, raising immediate concerns among employees. A WhatsApp message from Marakwe-Ogu confirmed that the payments were made directly from the Flutterwave wallet—a move that would have severe repercussions.

Within days, employees discovered their accounts were frozen, leaving many unable to access their funds. In emails seen by TechCabal, Flutterwave informed employees that their accounts had been flagged as part of an investigation into fraudulent transactions.

“Unfortunately, we are unable to lift the PND (post no debit) on the account at this time. The funds deposited into your account have been traced to a fraudulent merchant, and investigations are currently ongoing,” read one email from a Flutterwave associate.


Complex Transactions and a Growing Scandal

The situation escalated as Marakwe-Ogu moved ₦49 million through multiple intermediaries, including payment processors like Transact Pay and a VFD Bank account under his control. This made tracing and recovering the funds more challenging. TransactPay sent recall requests for ₦19.3 million, but by then, employees’ accounts were already frozen, and their financial lives disrupted.

Marakwe-Ogu reportedly agreed to a five-month repayment plan with Flutterwave, set to end in February 2025, but employees saw little resolution.


Employee Fallout and Broken Trust

For Marasoft’s employees, the situation went from bad to worse. Many had trusted the company’s mission and endured delayed payments, only to face frozen accounts and uncertainty. One employee shared how she was forced to borrow money from her father to meet obligations after her funds were frozen.

“I was left in a very difficult situation. It was stressful for both my father and me,” she told TechCabal.

As tensions rose, Marakwe-Ogu removed employees from the company’s WhatsApp group and stopped responding to calls, further alienating the team. By November, resignations began pouring in, with many citing a deliberate lack of transparency as the breaking point.


Marasoft’s Return Amid Lingering Questions

In January 2025, Marasoft resumed operations despite ongoing investigations and unpaid salaries. Surprisingly, at least eight employees returned to work, a decision likely driven by a lack of alternatives in a challenging job market.


Key Takeaways from the Marasoft Saga

  1. Regulatory Gaps and Operational Weaknesses

    Marasoft’s reliance on Flutterwave for processing payments in Kenya underscores a broader issue: many fintechs operate without local licenses, leaving them dependent on larger players and vulnerable to compliance issues.

  2. Ethical and Legal Concerns

    Marakwe-Ogu’s decision to use improperly accessed funds for salary payments—and subsequent attempts to recall those payments—raises serious ethical and legal questions.

  3. Employee Vulnerability

    The incident highlights the precarious position of employees in the fintech space, where delayed salaries and opaque management practices can leave workers financially and emotionally strained.

  4. Lack of Accountability

    Marakwe-Ogu’s silence and avoidance of direct communication with affected employees have further eroded trust in Marasoft’s leadership.


What Lies Ahead?

As investigations continue, the fallout from Marasoft Pay’s crisis serves as a cautionary tale for Nigeria’s fintech ecosystem. Without robust internal controls, transparent leadership, and regulatory oversight, companies risk eroding trust and damaging the sector’s reputation.

For employees, the road to recovering their funds—and their confidence in Marasoft—remains uncertain. For Marasoft, the future hinges on whether it can navigate this storm and implement reforms to rebuild trust with stakeholders.

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