In October 2024, employees at Marasoft Pay, a Nigerian fintech founded by Emmanuel Marakwe-Ogu, finally received two months’ worth of overdue salaries—a long-awaited relief after enduring financial hardship. However, their relief quickly turned into shock and frustration when they discovered that their bank accounts had been frozen, along with the accounts of people they had sent money to. The reason? The salaries had been paid using funds linked to fraudulent transactions.
According to six former Marasoft employees who spoke to TechCabal on the condition of anonymity, the source of the funds was flagged as suspicious—leading to account freezes and a prolonged legal battle for employees trying to regain access to their money.
The Origins of Marasoft’s Financial Troubles
Marasoft Pay operates in Nigeria and Kenya, offering businesses and individuals a platform for collecting payments. However, in Kenya, the company lacks a local financial license and instead processes transactions through a Flutterwave wallet, a workaround it has used since 2022. Kenyan court documents revealed that Marasoft deposited over $55 million into Flutterwave that year, highlighting the fintech’s heavy reliance on third-party processors.
While Flutterwave clarified that Marasoft was merely a customer and not a formal partner, the Nigerian fintech’s troubles escalated on October 16, 2024, when a glitch in the system allowed it to withdraw over ₦84 million ($54,000)—far more than it actually had in its Flutterwave wallet.
A Suspicious Pattern of Withdrawals
According to transaction records seen by TechCabal, Marakwe-Ogu personally initiated 102 withdrawals within 12 hours. Each withdrawal was linked to his phone number and bank verification number (BVN)—raising serious questions about the legitimacy of the transactions.
The timing of the glitch was highly suspicious:
•Marasoft employees had gone on strike on October 10 due to non-payment of salaries.
•Despite pausing operations, the company continued processing transactions, suggesting possible financial mismanagement.
•Within 24 hours of the glitch, Marakwe-Ogu transferred ₦35 million to pay employee salaries, bypassing the usual human resources (HR) payroll account.
Employees Paid with Fraudulent Funds, Accounts Frozen
Employees immediately noticed discrepancies with their salary payments and raised concerns about why the money did not come from Marasoft’s HR account. Their fears were confirmed when, within days, their accounts were frozen—plunging them into financial distress.
An email from Flutterwave to a former Marasoft employee confirmed the reason behind the freeze:
“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.”
Beyond the direct salary payments, more than 40 employees were impacted, with bank accounts frozen not only for the recipients but also for anyone they had sent money to.
Where Did the Money Go?
After paying employees, Marakwe-Ogu moved another ₦49 million across various accounts, using international and local payment processors to obscure the money trail.
•Some of the funds were sent through Transact Pay, a European fintech specializing in virtual accounts.
•₦49 million was then transferred to a VFD Bank account controlled by Marakwe-Ogu, making it difficult for authorities to retrieve the funds.
•On October 24, 2024, Transact Pay attempted to recall ₦19.3 million across ten transactions, but by then, many Marasoft employees’ accounts had already been frozen.
Despite the chaos, Marakwe-Ogu repeatedly reassured employees that the restrictions were a mistake and would be lifted soon. However, behind the scenes, he had already agreed to a five-month repayment plan with Flutterwave, set to expire in February 2025.
Marakwe-Ogu Tries to Recall Salaries, Employees Resign in Anguish
As employees scrambled for answers, Marakwe-Ogu quietly attempted to recall their salaries through the Nigerian Inter-Bank Settlement Scheme (NIBSS)—a move that employees only found out about later through leaked emails.
By November 2024, the situation worsened:
•Employees started resigning en masse, realizing that the company’s financial troubles were not just a temporary issue but a deliberate cover-up.
•Marakwe-Ogu removed employees from the company’s WhatsApp group and stopped taking their calls, effectively cutting off communication.
•Many employees were unable to access their savings, repay loans, or meet urgent financial obligations due to their frozen accounts.
One employee, who participated in an esusu savings scheme, was forced to borrow money from her father to repay her contributors after her account was blocked.
“I was left in a very difficult situation. It was stressful for both my father and me,” she said, requesting anonymity to speak freely.
Marasoft Resumes Operations Despite Ongoing Crisis
In January 2025, Marasoft resumed operations, and surprisingly, at least eight employees returned to the company, even though many still had frozen accounts and unpaid salaries.
Despite multiple requests for comment, Marakwe-Ogu has refused to address the allegations or clarify the company’s current financial status.
A Troubling Pattern in Nigeria’s Fintech Sector
Marasoft’s troubles highlight a growing issue in Nigeria’s fintech sector, where unlicensed financial operators often exploit regulatory loopholes and use third-party platforms to bypass local banking restrictions.
With the rise of digital payments and the increasing reliance on fintech solutions, cases like Marasoft’s suspected fraudulent salary payments underscore the urgent need for stricter oversight, financial transparency, and regulatory enforcement in Nigeria’s booming fintech ecosystem.
As the investigation into Marasoft and Emmanuel Marakwe-Ogu’s financial dealings continues, employees remain the biggest victims—left stranded with frozen accounts, unpaid wages, and little hope of accountability from their former employer.
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