A storm is brewing in Nigeria’s tech ecosystem as Sultan Akintunde, CTO of AltSchool Africa, has accused Bento Africa, a prominent payroll management company, of failing to remit full Pay-As-You-Earn (PAYE) taxes to the Federal Inland Revenue Service (FIRS). The allegations, made via a tweet on January 24, 2025, claim that Bento collected millions from startups using its platform but remitted as little as ₦100 monthly to the FIRS while falsifying transaction records.
The Allegations
Akintunde’s tweet specifically called on Nigerian startups using Bento’s services to verify their PAYE tax remittances with FIRS.
“We’ve stopped using them, but for the period we were using them, they were remitting ₦100 and faking transaction payment to FIRS,” Akintunde stated.
The post has since gone viral, amassing over 79,000 views and sparking a flurry of reactions from other startup founders and tech professionals. Some shared similar experiences, while others expressed concern about the implications of such allegations on the ecosystem.
Implications for Nigeria’s Startup Ecosystem
These allegations highlight a significant risk for startups relying on third-party service providers to manage critical functions like payroll and tax compliance. PAYE tax is a statutory requirement in Nigeria, and failure to remit the correct amounts could lead to severe penalties for both employers and service providers.
If true, the accusations against Bento Africa could shake the trust startups have in payroll platforms and raise questions about transparency and accountability within Nigeria’s tech ecosystem.
How Will FIRS Respond?
The Federal Inland Revenue Service (FIRS) plays a pivotal role in ensuring tax compliance in Nigeria. These allegations could prompt the agency to launch an investigation into Bento Africa’s operations and verify the tax remittances of all startups using the platform.
If discrepancies are found, FIRS may:
- Impose penalties on Bento Africa for any fraudulent practices.
- Hold startups liable for unpaid taxes, as businesses remain ultimately responsible for ensuring proper tax remittance.
- Introduce stricter oversight measures for payroll service providers, potentially mandating regular audits and compliance certifications.
Such regulatory scrutiny could have ripple effects across the tech sector, pushing service providers to enhance their transparency and operational standards.
Bento Africa’s Silence
As of now, Bento Africa has not issued a public statement addressing the allegations. The company, which has positioned itself as a leader in payroll solutions for startups, faces potential reputational damage. Its ability to retain existing clients and attract new ones could be jeopardized unless the company addresses these claims promptly and transparently.
What This Means for Startups
Startups are now urged to take proactive steps to verify the remittance of their taxes and conduct regular audits of their financial service providers. Failure to do so could expose them to significant legal and financial risks.
This incident also underscores the need for regulatory bodies like FIRS to enhance oversight of payroll service providers and enforce stricter compliance standards.
What’s Next?
Sultan Akintunde’s call to action may lead to broader scrutiny of payroll service providers in Nigeria. If further evidence supports his claims, it could trigger regulatory investigations and set a new precedent for compliance expectations in the sector.
This controversy serves as a wake-up call for startups to prioritize due diligence in all their business operations. Whether Bento Africa is guilty or not, the allegations have sparked a necessary conversation about trust, transparency, and accountability in Nigeria’s growing tech ecosystem.
Stay tuned as this story develops, with potential implications for both startups and payroll service providers across the region.
