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Bento Africa’s Crisis: A Deep Dive into Financial Scandals, Toxic Leadership, and the Reckoning for Nigeria’s HR-Tech Sector

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In 2019, Bento Africa emerged as a promising startup in Nigeria’s burgeoning tech industry, offering innovative solutions to streamline payroll, tax, and pension management for businesses. The company’s rapid ascent was marked by significant client acquisitions and a reputation for technological innovation. However, by 2025, Bento Africa’s narrative had shifted dramatically, becoming embroiled in a series of scandals that have not only threatened its existence but also cast a shadow over Nigeria’s HR-tech sector. This comprehensive examination delves into the multifaceted crises that have besieged Bento Africa, exploring the financial misconduct, leadership failures, and broader industry implications that have come to define its troubled journey.

The Financial Scandal: Forgery, Missing Millions, and a Sector Under Scrutiny

In January 2025, Nigeria’s Economic and Financial Crimes Commission (EFCC) and the Lagos Inland Revenue Service (LIRS) initiated investigations into Bento Africa following a cascade of allegations from clients concerning the mismanagement of tax and pension funds. These clients accused the company of failing to remit taxes and pension contributions on their behalf, leading to significant financial discrepancies and legal challenges.

The situation escalated as prominent clients began severing ties with Bento Africa. By late 2024, industry leaders such as Moniepoint, Paystack, and Bamboo had terminated their relationships with the company. While these departures initially appeared as isolated business decisions, they collectively signaled deeper issues within Bento’s operational framework. The full extent of the crisis became evident when these former clients publicly disclosed their reasons for leaving, citing concerns over financial mismanagement and a breach of trust.

A particularly illustrative case is that of Fuelmetrics, a digital inventory firm that suffered a substantial financial setback due to Bento’s actions. Between 2023 and 2024, Bento’s failure to remit taxes and pensions on behalf of Fuelmetrics resulted in penalties amounting to ₦50 million. An internal memo obtained by TechCabal confirmed that LIRS was actively investigating multiple companies affected by Bento’s practices, highlighting the widespread nature of the issue.

The gravity of the situation was further underscored when Akintunde Sultan, co-founder of AltSchool, publicly accused Bento of fabricating tax receipts and remitting a meager ₦100 monthly while allegedly embezzling clients’ funds. Sultan’s assertion that “this is organized deception, not an accounting error” resonated deeply within the business community, prompting calls for accountability and transparency.

In response to these mounting allegations, CEO Ebunoluwa Okubanjo acknowledged the presence of “operational gaps” within the company but deflected full responsibility by attributing the challenges to Nigeria’s “complex regulatory systems.” This defense was met with skepticism by industry observers. A Lagos-based fintech analyst commented, “If multiple clients are affected, it’s not a glitch—it’s negligence,” suggesting that the issues were systemic rather than incidental.

Toxic Leadership: A Culture of Fear and Retaliation

Beneath the surface of financial turmoil, Bento Africa grappled with internal challenges stemming from its leadership culture. In March 2022, an exposé by TechCabal shed light on the toxic workplace environment fostered under CEO Okubanjo’s leadership. Former employees came forward with accounts that painted a troubling picture of the company’s internal dynamics.

Reports emerged of verbal abuse, with the CEO allegedly berating staff during meetings and making derogatory remarks. One ex-employee recounted instances where individuals were fired on the spot for minor mistakes, creating an atmosphere of fear and uncertainty. Additionally, there were claims of denied leave requests, leading to employee burnout. One worker reported being hospitalized due to stress, attributing their condition to the relentless work culture imposed by the leadership.

The severity of these allegations prompted Bento’s board to intervene. Following the exposé, the board mandated that Okubanjo temporarily step back from his role and commissioned a third-party audit to assess and address the workplace practices in question. Despite these measures, former staff members remained skeptical about the potential for meaningful change. As one ex-employee remarked, “The damage is done. Trust is shattered,” indicating deep-seated disillusionment with the company’s leadership.

The Fallout: Legal Peril and Reputational Ruin

As of January 2025, Bento Africa’s future hangs in the balance, besieged by legal challenges and a tarnished reputation. The ongoing investigations by the EFCC and LIRS could culminate in severe consequences, including substantial fines, criminal charges against key executives, or even the revocation of the company’s operating license. Such outcomes would not only jeopardize Bento’s financial stability but also its very existence.

In addition to regulatory scrutiny, the company faces potential litigation from former clients seeking to recover their losses. Fuelmetrics, among others, is considering legal action to recoup the penalties incurred due to Bento’s negligence. These lawsuits would further strain the company’s already precarious financial situation and amplify the negative publicity surrounding its operations.

In an attempt to mitigate the damage, CEO Okubanjo has stated that the company is “working tirelessly” to settle outstanding debts and implement comprehensive system overhauls to prevent future issues. However, skepticism abounds among former clients and industry observers. Akintunde Sultan of AltSchool encapsulated this sentiment, questioning, “Why should we believe them now?” This prevailing doubt underscores the significant challenges Bento faces in rebuilding trust within the business community.

The Human Cost: Startups and Employees Caught in the Crossfire

The repercussions of Bento Africa’s scandal extend beyond the company itself, affecting a broader ecosystem of startups and employees who relied on its services. Many small and medium-sized enterprises (SMEs) depended on Bento for compliance with tax and pension regulations. The company’s failure to remit these obligations has left these businesses vulnerable to legal penalties and reputational damage. For startups operating on tight margins, such unforeseen liabilities could prove catastrophic, potentially leading to closures and job losses.

Employees are also bearing the brunt of Bento’s mismanagement. The default on pension contributions has jeopardized the financial futures of numerous workers who trusted the company to manage their retirement funds responsibly. A Lagos-based HR manager emphasized the gravity of the situation, stating, “This isn’t just about money—it’s about people’s lives.” The breach of fiduciary duty has eroded employee confidence not only in Bento but also in other HR-tech solutions, casting a pall over the industry’s credibility.

Broader Implications: A Wake-Up Call for Nigeria’s HR-Tech Sector

The unraveling of Bento Africa serves as a stark reminder of the systemic vulnerabilities within Nigeria’s rapidly expanding HR-tech sector. The scandal has illuminated critical gaps in regulatory oversight, corporate governance, and ethical standards that, if left unaddressed, could hinder the industry’s sustainable growth.

One of the primary concerns is the apparent lack of stringent regulatory frameworks governing HR-tech firms. These companies handle sensitive financial data and are entrusted with significant fiduciary responsibilities, yet oversight remains inadequate. A regulatory expert questioned, “Where were the auditors?” highlighting the need for more robust monitoring mechanisms to prevent such failures in the future.

 Trust, the Ultimate Currency

Bento Africa’s trajectory from promising HR-tech innovator to cautionary tale underscores the critical importance of ethical governance and transparency in the tech industry. The company’s rapid rise was eclipsed by allegations of financial misconduct and toxic leadership, which led to legal challenges and a tarnished reputation. This downfall serves as a stark reminder that startups must not lose sight of foundational principles of integrity and accountability in the pursuit of innovation and market share.

The Bento debacle offers valuable lessons for Nigeria’s burgeoning tech ecosystem. It highlights the necessity for robust regulatory frameworks that can keep pace with technological advancements and the imperative for startups to implement strong internal controls. Investors, clients, and employees are now more vigilant, demanding higher standards of corporate governance and ethical conduct.

As the industry moves forward, rebuilding trust will be paramount. Companies must prioritize transparent operations and foster workplace cultures that value and respect all stakeholders. The Bento Africa case illustrates that while innovation can drive success, it is trust that sustains it. In the dynamic landscape of Nigeria’s tech sector, maintaining this trust is the ultimate currency that will determine long-term viability and prosperity.

As investigations continue and the industry reflects on these events, one truth remains clear: In the race to scale and disrupt, safeguarding ethical standards and building trust are not just regulatory obligations but essential components of sustainable success.

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