Nigerian HR software company, Bento Africa has temporarily halted its operations following the resignation of its co-founder and CEO, Ebunoluwa Okunbanjo.
In a recent email to investors, Okunbanjo announced his departure, expressing intentions to pursue a new venture with Ada AI, an artificial intelligence-driven sales assistant.
This leadership change occurs amidst serious allegations against Bento Africa concerning the non-remittance of Pay-As-You-Earn (PAYE) deductions for certain clients.
Notably, Akintunde Sultan, co-founder of AltSchool, accused the company of failing to remit PAYE taxes and pensions, while allegedly issuing falsified receipts indicating compliance. In response to these claims, the Lagos Inland Revenue Service (LIRS) has initiated an investigation into the company’s practices.
In his communication to investors, Okunbanjo attributed his resignation to challenges within Bento’s business model. He acknowledged that despite attempts to refine their approach, the existing model was not yielding the desired results.
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He further speculated that if African nations were to adopt Western taxation and remittance frameworks, companies like Bento could achieve significant success.
This is not the first instance of Okunbanjo stepping down from his leadership role. In 2022, following reports highlighting a toxic work environment under his management, he was suspended and removed from all personnel-related decisions by the company’s Board of Directors.
The board emphasized their commitment to fostering a psychologically safe workplace and initiated an active investigation into the company’s culture.
The recent allegations regarding PAYE remittance appear to have expedited Okunbanjo’s decision to resign, casting concerns over the company’s governance. Despite claims of processing over $40 million in payroll since its establishment, Bento Africa now faces significant scrutiny.
With Okunbanjo’s departure, the company’s board is tasked with identifying a suitable successor. This transition also presents potential acquisition opportunities for competitors in the HR technology sector.
Given that Nigeria’s labor market is predominantly informal, the demand for HR tech solutions may be limited, suggesting that industry consolidation could be a strategic path forward.
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