Bento Africa, a Nigerian HR tech startup currently under scrutiny for tax and pension irregularities, has temporarily shut down its operations following the resignation of its CEO, Ebun Okubanjo, and the layoff of its entire engineering team after a dispute over unpaid January salaries.
In an email to clients, Bento’s board stated, “We will proceed to temporarily shut down operations to bring stability back to the company. In view of this, it is important for our clients to refrain from funding their payroll positions during this period. We are confident of the restoration of normalcy soon.”
Shutdown After Salary Protests
The shutdown comes after Bento laid off its 10-person tech team in January. The employees had refused to work after Okubanjo informed them that their January salaries would be “strategically delayed” to prioritize client payroll processing. The collective protest resulted in Bento’s operations grinding to a halt, especially in payroll processing, its core business function.
Several clients took to social media to report that Bento had not processed payroll for their employees during the first week of February. According to internal communications, Bento had been manually processing payroll since 2024 due to persistent payment processor issues and challenges in reconciling underfunded accounts.
In a separate email to customers, Bento claimed that January salaries had been paid, and some staff had been reactivated to restore critical services. The company acknowledged ongoing delays in disbursing payments but promised to refund clients unable to process payroll by the end of Tuesday’s business day.
Operational Collapse and Uncertain Future
The layoffs and resignation of Okubanjo have left Bento’s future uncertain. The company faces mounting challenges, including unresolved tax and pension remittance allegations, a leadership vacuum, and operational difficulties in meeting customer obligations.
While Bento’s board expressed confidence in restoring operations, the company’s ability to rebuild trust with its clients and stabilize its services remains in question.
Client Refunds and Interim Strategy
In an effort to mitigate the fallout, Bento’s board has prioritized client refunds and rebuilding core payroll operations. Still, many observers are skeptical about how quickly the company can recover, given the damage to its reputation and the sudden collapse of its infrastructure.
For now, Bento’s leadership must navigate a complex road to recovery—balancing regulatory challenges, rebuilding operations, and regaining the confidence of both clients and employees. Whether the promised “restoration of normalcy” will come soon remains to be seen.