A former top executive at Nigerian fintech unicorn Moniepoint has initiated legal proceedings against the company, alleging it wrongfully denied him access to stock options valued at nearly $890,000. The lawsuit, now before the National Industrial Court of Nigeria, pits ex-software engineer and enterprise architect Damilola Ajiboye against his former employer in a case that highlights growing concerns about employee equity transparency in Africa’s tech sector. Ajiboye’s claims suggest a stark contrast between Moniepoint’s public image as a progressive, employee-focused company and its internal handling of equity commitments.
Promises Made, Promises Broken
Ajiboye joined Moniepoint in October 2016 and was instrumental in building its flagship Point of Sale application. In return for his long-term commitment, he was promised stock options contingent upon a five-year tenure. The offer was formalised in 2019 through an agreement with Stanbic IBTC Trustees, covering 32,000 Executive Stock Options under the TeamApt ESOS.
Departure Sparks Dispute
After fulfilling the five-year requirement, Ajiboye submitted his resignation in December 2021, which became effective on January 9, 2022. He had already exercised and sold 4,200 units during a 2021 exit window, further reinforcing his belief in his eligibility. However, upon departure, the communication from Moniepoint regarding his remaining 27,800 options grew sparse and ambiguous.
Confusion and Delayed Access
Ajiboye reached out to Moniepoint on January 8, 2022, about the next steps for exercising his shares but received no timely response. It wasn’t until April 4, 2022—85 days after his last day—that he received access credentials from Carta, the company’s new stock management platform. The platform showed a rapidly closing three-month window to act, leaving Ajiboye with only five days to exercise his rights.
Assurances and Miscommunication
In communications shared with Condia, a Moniepoint executive assured Ajiboye that the window would be extended to two years, prompting him to accept the grant on Carta on April 6, 2022. Months later, he discovered that his exercise rights had expired, leading to a back-and-forth with Moniepoint’s representatives. Despite a written message acknowledging a likely oversight, the company later asserted that Ajiboye had ample time and full understanding of the terms.
Corporate Position and Legal Justification
Moniepoint’s legal counsel has stated in emails that the three-month period was standard and communicated clearly, adding that Ajiboye failed to act within the stipulated timeframe. They argue that his acceptance of the stock option agreement implies acknowledgment of the terms. Therefore, the company contends it is not liable for any failure to exercise the options.
Seeking Legal Redress and Restitution
Ajiboye’s lawsuit seeks several outcomes from the court, including a declaration that his 4,200 shares were successfully exercised in 2021. Most importantly, he is asking the court to reinstate the 27,800 remaining stock options under the original ESOP terms. His legal counsel also argues that newer stock policies introduced in 2021 should not retroactively affect agreements made and partially executed prior to that date.
Claims of Oppression and Damages Sought
Citing what he describes as “oppressive behaviour” by Moniepoint, Ajiboye is also seeking ₦50 million ($31,645) in damages. He maintains that his loyalty and contributions to the company earned him the right to the stock options and that the actions taken against him were retaliatory. His case reflects broader questions about transparency and accountability within Africa’s rapidly scaling tech startups.
This legal dispute could have wider implications for how employee stock options are handled in high-growth startups across Nigeria and beyond. As Moniepoint continues to promote itself as a premier employer backed by major global investors, the outcome of this case may influence industry norms around equity compensation. Moniepoint has declined to comment further, citing the pending litigation.
Source : The condia