Following the resignation of its co-founder and CEO, Ebun Okubanjo, Bento Africa, a payroll and HR management platform based in Nigeria, has temporarily halted operations.
This decision follows investigations into claims that the company failed to remit tax and pension payments on behalf of its clients by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC).
Okubanjo announced his resignation and the immediate suspension of all business operations, including payroll processing, in a leaked email addressed to the board.
He also gave up his debt and stock in the business. This is Okubanjo’s second time leaving the CEO post; he resigned in March 2022 after being accused of creating a toxic workplace, but he rejoined the company later that year.
The departure comes as industry colleagues, such as Akintunde Sultan, co-founder of the edtech company AltSchool, publicly accused Bento of sending a small amount to the LIRS despite receiving large payments from companies. Concerns regarding the company’s handling of payroll and pension taxes have also been voiced by other founders.
In contrast to more efficient systems in nations like the U.S., Okubanjo noted in his letter of resignation that Nigeria’s tax and remittance system was a major obstacle to expanding the company’s activities. After leaving Bento, he intends to concentrate on creating Ada AI, an AI-powered sales assistant.
Founded in 2019, Bento was one of several firms that provided loan access, statutory remittances, and pay automation.
The company had previously raised $2.1 million in initial capital. However, comparing itself to rivals like PaidHR and SeamlessHR has been hampered by a string of reputational failures.
Despite being a leader in Nigeria’s HR technology industry, Okubanjo’s departure is anticipated to have a further effect on the company’s market dominance.
