Bento Africa, the Nigerian HR technology startup embroiled in allegations of tax and pension irregularities, has temporarily shut down operations. The company announced the decision in an email to customers, citing the need to restore stability following the resignation of CEO Ebun Okubanjo and the layoffs of its engineering team after a dispute over unpaid salaries.
“We will proceed to temporarily shut down operations to bring stability back to the company,” Bento’s board wrote in the email seen by TechCabal. “In view of this, it is important for our clients to refrain from funding their payroll positions during this period. We are confident of the restoration of normalcy soon.”
Bento’s struggles intensified in January when its entire 10-person tech team was laid off after refusing to work without pay. Employees had halted operations in protest over delayed January salaries, citing financial hardship. The company treated the protest as voluntary resignations, locking employees out of their work emails and internal systems.
Before resigning on January 30, Okubanjo had informed employees that salaries would be “strategically delayed” to prioritise client payroll processing. The next day, he told employees to expect payments once Bento had completed pending transactions.
However, with no engineering team to oversee payroll processing, the company’s ability to operate collapsed.
At least three businesses have reported that Bento failed to process payroll for their employees in February, further straining its relationship with clients. Payroll processing, which was previously automated, had already been switched to manual disbursements in 2024 due to persistent issues with payment processors and underfunded accounts.
In an email to customers, Bento confirmed it had disbursed January salaries to employees and was working on restoring key functions to address outstanding payroll obligations. However, the company acknowledged continued difficulties in processing payments for some clients.
Several businesses that depended on Bento’s payroll system have raised concerns about delays in salary disbursement and tax remittances. Some affected companies took to social media to report that their employees had yet to receive payments, prompting frustration and uncertainty among workers.
To mitigate the crisis, Bento announced plans to refund clients whose salaries it cannot disburse before the close of business on Tuesday. It remains unclear how many businesses will be affected or how long the refund process will take.
Bento has faced growing scrutiny over allegations of financial mismanagement, including failure to remit employee taxes and pensions despite collecting them from businesses. These accusations led to an investigation by the Economic and Financial Crimes Commission (EFCC) and the Lagos Inland Revenue Service (LIRS). Several clients severed ties with the company, further weakening its financial position.
The resignation of Okubanjo and the layoffs of key personnel have left the company in a state of uncertainty, with no clear leadership structure in place. Bento’s board has assured customers of a return to normalcy, but no timeline has been provided for the restoration of operations.
What happens to Bento Africa now?
The company’s future remains unclear as investigations continue and clients seek alternative payroll solutions. With payroll processing already disrupted and refunds being issued to affected clients, Bento’s ability to regain stability depends on resolving its financial and operational challenges.
Despite these issues, the company’s board remains optimistic, stating in its customer email that it is “confident of the restoration of normalcy soon.” However, with no clear roadmap for recovery and ongoing legal scrutiny, the extent of Bento’s shutdown and its long-term impact remain uncertain.
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