Nigerian HR-tech startup Bento Africa is facing allegations of failing to remit tax and pension payments on behalf of its clients, sparking an investigation by the Lagos Inland Revenue Service (LIRS) and the Economic and Financial Crimes Commission (EFCC). The scandal has led to a client exodus, with high-profile clients like Moniepoint, Paystack, Kobo360, and Bamboo ditching the company in 2024.

According to multiple sources with direct knowledge of the matter, Bento is under investigation for allegedly forging tax receipts, delaying pension contributions, and other financial discrepancies. Two former clients who asked not to be named confirmed the allegations, stating that they had reported the company to the EFCC. One of the clients, Fuelmetrics, a digital inventory management company for petrol stations, claims it incurred ₦50 million ($108,000) in unpaid taxes and pension contributions between 2023 and 2024.

Akintunde Sultan, co-founder of edtech AltSchool, publicly accused Bento of forging tax receipts and remitting only ₦100 monthly after "collecting millions of naira in payments from startups." Sultan's allegation has added further pressure on Bento, suggesting the startup mismanaged pension and tax payments. Bento's CEO and co-founder, Ebun Okubanjo, acknowledged that the company had received complaints from the LIRS regarding unpaid taxes and confirmed that the company is working on a plan to settle outstanding tax obligations for affected clients.

Okubanjo attributed the payment delays and discrepancies to the inherent limitations of Nigeria's complex and outdated tax and pension systems. However, a former Bento employee claimed that Okubanjo intentionally delayed pension and tax payments despite client funds being available. Internal documents reviewed by TechCabal showed instances where payments were delayed for up to ten months.

Industry experts and former clients remain skeptical of Bento's denials, citing the company's lack of transparency and accountability. The payment delays and ensuing legal issues have cost Bento some business, with prominent clients like Paystack and Helium Health ditching the company in 2024. Okubanjo downplayed these departures, suggesting Bento's strategic shift towards traditional businesses is a deliberate move to reduce reliance on venture-backed startups, which are vulnerable to funding downturns.

The incident highlights the lack of regulation in Nigeria's HR-tech sector, leaving significant gaps in oversight and accountability. As a result, underpayments or failed remittances can be attributed to systemic inefficiencies rather than deliberate malfeasance, allowing companies to sidestep liability by blaming technical or operational challenges.

The design of payroll applications makes users assume taxes and pensions are remitted digitally. However, on the backend, Bento manually initiates these payments through a bank, which can result in delays of weeks or even months. Additionally, employees often show little interest in actively monitoring their pensions, assuming the funds would be eroded by inflation. A lax tax culture and distrust in government institutions also contributed to a lack of scrutiny in the tax remittance process.

The incident serves as a cautionary tale for employees and HR managers, emphasizing the importance of actively monitoring pension and tax payments. For Bento, the scandal has damaged its reputation, and the company must work to regain the trust of its clients and the industry at large.