Bento Africa, a Nigerian HR technology startup, has temporarily suspended operations following a series of financial and operational challenges, including allegations of tax and pension irregularities. The decision comes after the resignation of founder and CEO Ebun Okubanjo and the layoff of the company’s engineering team, which followed protests over unpaid January salaries.
In an email to clients, Bento’s board announced the temporary shutdown, stating, “We will proceed to temporarily shut down operations to bring stability back to the company.” The board advised clients to refrain from funding their payroll positions during this period and expressed confidence in restoring normalcy soon.
The crisis escalated in January when Bento laid off its 10-person tech team after employees refused to work until their January salaries were paid. Despite resigning on January 30, Okubanjo informed employees the following day that salaries would be “strategically delayed” to prioritize processing client payroll, according to Google Chat messages reviewed by TechCabal. Employees, facing financial hardship, collectively decided to halt operations until they were paid.
The layoffs severely impacted Bento’s ability to process payroll for its clients. At least three clients took to social media to report that Bento had failed to process their employees’ salaries in the first week of February. The company, which previously automated salary disbursements, has been manually handling payments since 2024 due to issues with payment processors and underfunded accounts.
In a recent email to customers, Bento stated that it has paid its staff their January salaries and “reactivated key staff to aid in bringing core functionality back online to clear outstanding payroll obligations triggered by our clients.” However, the company continues to face challenges in disbursing payments for some clients and plans to issue refunds to those whose payrolls cannot be processed by the close of business on Tuesday.
The abrupt resignation of the CEO, coupled with allegations of financial discrepancies—including failure to remit tax and pension payments—has cast uncertainty over Bento’s future. Despite these challenges, the company’s board remains optimistic, assuring clients of a return to normal operations soon.
As Bento works to resolve its issues, the situation highlights the growing pains faced by startups in Africa’s fast-evolving tech ecosystem and underscores the importance of financial transparency and operational stability in building trust with clients and employees alike.
