Bento Africa, a Nigerian HR tech startup, has temporarily shut down operations following a leadership crisis and financial struggles.
The move comes after CEO Ebun Okubanjo’s resignation and the layoff of its engineering team over unpaid salaries
Why it matters
The shutdown disrupts payroll services for businesses relying on Bento, exacerbating concerns about the company’s financial management and ability to fulfill obligations.
Driving the news
- In an email to customers, Bento’s board announced the temporary closure, urging clients to refrain from funding payroll positions.
- The company has faced allegations of tax and pension remittance failures, triggering investigations by Nigerian authorities.
- January salaries were reportedly disbursed, but payroll processing remains unstable, forcing some businesses to seek alternatives.
By the numbers
- Bento’s entire 10-person tech team was laid off in January after refusing to work without pay.
- At least three businesses reported payroll failures in February.
- The company promised refunds to affected clients but provided no timeline.
The big picture
Bento’s struggles highlight broader challenges in Nigeria’s fintech and payroll ecosystem, where regulatory compliance and financial stability remain key concerns.
What’s next
With no clear leadership structure and mounting legal scrutiny, Bento’s path to recovery remains uncertain. The board maintains optimism about restoring operations, but clients are already exploring alternative payroll solutions.
Source: TechNext
