Nigerian HR-tech startup Bento Africa, co-founded by Ebun Okubanjo and Chidozie Okonkwo in 2019, is facing intense scrutiny following allegations of failing to remit taxes and pensions on behalf of its clients. The accusations have led to investigations by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC), triggering an exodus of high-profile clients like Moniepoint, Paystack, Kobo360, and Bamboo in 2024.
The Allegations and Investigations
The claims against Bento include:
- Forged tax receipts: Accusations of falsifying documentation for tax payments.
- Delayed pension remittances: Reports of funds being withheld for up to 10 months, even when clients had made payments to Bento.
- Unpaid tax liabilities: A former client, Fuelmetrics, claims it incurred ₦50 million ($108,000) in unpaid taxes and pensions from 2023 to 2024.
An internal memo from LIRS indicated that Bento’s alleged discrepancies extend to other companies, pointing to a systemic issue.
Additionally, Akintunde Sultan, co-founder of edtech startup AltSchool, publicly accused Bento of remitting as little as ₦100 monthly for taxes despite collecting millions from its clients.
While CEO Ebun Okubanjo admitted to receiving complaints from LIRS, he insisted that the issues affect “less than 1% of Bento users” and attributed the problems to the limitations of Nigeria’s outdated tax and pension systems.
Client Fallout and Legal Implications
The fallout has been severe, with major startups like Paystack and Helium Health cutting ties with Bento. Kobo360, for instance, lodged a complaint with the EFCC after discovering discrepancies in pension payments that dated back years.
A former HR manager at Kobo360 stated:
“During the investigation, Bento claimed our two-year audit, which revealed over ₦20 million in missing funds, was inaccurate. They blamed a glitch for the discrepancy and refused to provide records to support their claims.”
Bento’s CEO, however, described these investigations as stalled, citing the operational difficulty and cost of retrieving records from multiple Pension Fund Administrators (PFAs) across different states.
Root Causes and Industry Challenges
Systemic Factors
- Manual Processes: While Bento advertises automated payroll services, its backend still relies on manual payment processes. This has led to delays and errors in tax and pension remittances.
- Weak Employee Oversight: Employees often trust their employers to handle pensions and taxes, rarely checking whether funds have been remitted. This lax oversight has allowed issues to go unnoticed for months.
- Complex Regulations: Nigeria’s fragmented tax and pension systems lack API integrations, making it difficult for startups like Bento to ensure seamless compliance.
Internal Practices
Former employees accuse CEO Okubanjo of intentionally delaying payments despite having client funds available. Internal documents reportedly show that payments were sometimes delayed for months.
Bento’s flat pricing model—₦100 per employee—has also been criticized as unsustainable for delivering the level of service expected by clients.
A Troubled History
This isn’t the first time Bento and its CEO have faced reputational challenges:
- In 2023, Okubanjo was accused of creating a toxic workplace, leading to his brief step-aside as CEO.
- In 2020, a viral video showed Okubanjo berating a customer at his gym over a complaint, further tarnishing his public image.
The Cost of Trust Issues
Bento’s recent issues highlight a significant gap in oversight within Nigeria’s HR-tech sector, where startups operate in a largely unregulated space. While the company claims to process ₦4-5 billion ($2.6 million) in monthly salaries and generates ₦24 million ($15,871) in revenue, its inability to maintain client trust is proving costly.
Despite the controversies, Bento has resumed operations in January 2025, with some employees returning to the fintech.
Lessons for Employers and Employees
For Employers
- Verify Payments: HR managers must routinely audit tax and pension remittances instead of assuming these functions are automated.
- Demand Transparency: Regular reconciliation and detailed records should be standard practice for payroll providers.
For Employees
- Stay Informed: Monitor your pension contributions and request tax records periodically.
- Understand Your Rights: Ensure employers are compliant with regulations, as lapses could directly impact your financial security.
Conclusion
Bento Africa’s ongoing challenges serve as a cautionary tale for Nigeria’s HR-tech sector. While the startup promises to resolve its reconciliation errors and regain client trust, its reputation has taken a significant hit.
As the fintech ecosystem grows, stakeholders must address the regulatory gaps that allow such lapses to occur. For now, Bento faces an uphill battle to rebuild its credibility in an industry where trust is paramount.