Nigerian HR startup Bento is under the spotlight as the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC) launch investigations into allegations of financial impropriety. Accusations range from failing to remit taxes and pensions to forging tax receipts and delaying pension contributions, according to multiple media reports.
A Storm of Allegations
The controversy intensified when Akintunde Sultan, co-founder of AltSchool, accused Bento of remitting just ₦100 to the LIRS after collecting millions from startups for tax payments. On X (formerly Twitter), Sultan’s allegations were echoed by other founders, including Deji Ogundiran of Fuelmetrics Inc., who revealed a ₦50 million exposure due to Bento’s alleged actions.
“The last thing I want to do is drag a Nigerian startup online, but Bento has forged PAYE remittance and pension remittance for over 2 years,” Ogundiran tweeted, reflecting the growing frustration among clients.
High-profile companies such as Moniepoint, Paystack, Kobo360, and Bamboo have reportedly severed ties with Bento due to the recurrent nature of these issues.
CEO’s Response and Lingering Doubts
In response, Bento’s CEO and co-founder, Ebun Okubanjo, acknowledged the complaints but downplayed their significance, stating on LinkedIn, “Of 1000 plus users, 30 will have complaints – legitimate complaints – but that does not a pattern make.”
Despite this, Okubanjo pledged to settle outstanding tax obligations for affected clients. However, skepticism remains high, fueled by the founder’s history of controversy. In 2022, a TechCabal exposé detailed a toxic workplace culture under his leadership, prompting him to step down briefly as CEO. Earlier, in 2020, Okubanjo faced backlash for publicly scolding a customer who complained about poor service at his gym.
The Bigger Picture
This isn’t just a crisis for Bento; it’s a cautionary tale for Nigeria’s burgeoning tech ecosystem. Trust is a cornerstone of any service-based business, and allegations like these can erode confidence in the industry. For Bento, the challenge now is not just legal but reputational.
While the investigations are ongoing, Bento must address these allegations transparently and take steps to rebuild trust. The company is at a crossroads: either it transforms its operations to align with the expectations of its clients and regulators or risks becoming a cautionary tale in Nigeria’s startup narrative.
As the tech community watches closely, the outcome of this case could set a precedent for how startups in Africa manage their fiduciary responsibilities—and their public image.
