Nigerian HR-tech startup Bento Africa has announced a pause in transactions following the resignation of its co-founder and CEO, Ebun Okubanjo. His departure comes as the company faces mounting scrutiny over allegations of failing to remit pay-as-you-earn (PAYE) taxes and pension contributions on behalf of its clients.
In an email to investors, Okubanjo disclosed his plans to step away from Bento and embark on a new venture, Ada AI, an AI-powered sales assistant. He also acknowledged that the company’s business model was not working, signalling deeper operational challenges beyond the current controversy.
“I started to confide in some of you early last year that our thesis was not working. We did change it to something more pared down, but it is time for me to journey on. If Africa adopts the Western style of taxation and remittances, these companies are gold mines,” Okubanjo wrote.
A Troubled Past & Unresolved Allegations
Bento Africa has been under intense scrutiny after AltSchool co-founder Akintunde Sultan publicly accused the company of failing to remit PAYE taxes and pensions while issuing fraudulent receipts to clients. The Lagos Inland Revenue Service (LIRS) has since launched an investigation, further fuelling concerns over the company’s financial integrity.
This is not the first time Bento’s leadership has faced backlash. Okubanjo previously stepped down in 2022 following reports of a toxic work environment and, according to his email, briefly stepped away again in 2024 before returning. His latest resignation raises fresh questions about Bento’s management stability and long-term viability.
What’s Next for Bento?
With its CEO’s departure, Bento’s board will now look for a suitable replacement, but the company’s future remains uncertain. The pause in transactions could signal deeper financial or regulatory troubles, and industry observers speculate that the startup may soon face acquisition discussions.
While HR-tech startups have proliferated in Nigeria, the sector faces unique challenges, particularly in a country where the informal sector dominates employment. This limits the total addressable market, making consolidation among HR-tech firms a likely path forward.
For now, Bento Africa’s future hinges on regulatory investigations, client trust, and whether a new leadership team can rebuild confidence in its operations. With allegations still unresolved and public scrutiny growing, the company may struggle to regain its footing.
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