Bento Africa, a Nigerian HR-tech startup, is reportedly under investigation after accusations of failing to remit taxes and pension payments for its clients.
The company, founded in 2019, is now being investigated by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC).
Per TechCabal, the investigations have led to the departure of several clients in 2024, including Moniepoint, Paystack, and Kobo360.
The allegations against Bento include forging tax receipts, delaying pension contributions, and other financial discrepancies. Sources familiar with the matter revealed that former clients are particularly concerned about Bento’s management of their tax and pension remittances.
Fuelmetrics, a digital inventory management company, has accused Bento of owing ₦50 million ($108,000) in unpaid taxes and pension contributions between 2023 and 2024. “LIRS made us understand that there is an ongoing investigation on Bento and that we are not the only company affected in this scam, dating from 2023 till date,” Fuelmetrics said in an internal memo.
In response to the allegations, Bento’s CEO, Ebun Okubanjo, admitted that the company had received complaints regarding unpaid taxes. He assured that the company is addressing the issue and plans to settle outstanding obligations.
However, Okubanjo downplayed the extent of the problem, claiming it affected “a very small percentage of Bento users, who happen to be very vocal in the tech ecosystem.”
Even with this, sources have shown doubts about the company’s ability to manage client funds effectively, pointing to delays in remitting payments, some lasting up to ten months.
An unnamed former employee of Bento Africa alleged that Okubanjo deliberately delayed pension and tax payments despite the availability of client funds. According to the ex-employee, internal documents show that the company’s processes led to payments being delayed for long periods.
Okubanjo, however, attributed these delays to the manual nature of Bento’s payment system and insisted that payments are made promptly once discrepancies are identified.
Despite these assurances, Bento’s internal processes have been questioned by industry experts. An HR-SaaS expert remarked, “It is uncommon to hear of payment glitches that last a calendar year,” adding that such delays suggest deeper systemic issues. Bento’s past controversies also increase doubts.
In 2023, Okubanjo was criticised for allegedly creating a toxic work environment, leading him to step aside from people-related decisions temporarily.
Bento Africa has tried to address some of these challenges by lobbying for a direct API integration with Nigeria’s tax and pension systems, which they claim would simplify payment reconciliation. However, Okubanjo admitted that these efforts had not yet succeeded, leaving many clients frustrated.
The company’s difficulties have been compounded by an inability to provide clients with the detailed records required for reconciliation. For example, when Kobo360 spoke about missing pension payment receipts, Bento reportedly obstructed an EFCC investigation by refusing to provide the necessary records.
The investigation revealed a shortfall of over ₦20 million in pension funds during the five years the company worked with Bento.
Bento’s CEO, however, has remained defiant. He claimed that only a few clients request regular short-term records for reconciliation and that such requests are difficult and expensive to fulfil due to the manual processes involved.
Okubanjo also claimed that Bento’s transition towards serving small and medium enterprises (SMEs) was a deliberate move to reduce reliance on venture-backed startups, which are more vulnerable to funding downturns.
Nonetheless, with the ongoing investigations and the loss of key clients, Bento claims that it remains profitable, processing between ₦4-5 billion ($2.6 million) in salaries monthly. However, insiders remain wary of the company’s future, given the issues about its ability to effectively manage tax and pension obligations.
