In a surprising twist, Ebun Okubanjo, the CEO of Bento Africa, has stepped down amidst mounting scrutiny from the Economic and Financial Crimes Commission (EFCC) and the Lagos Inland Revenue Service (LIRS). His resignation was communicated to investors via a confidential email, where Okubanjo stated, “If Africa adopts the Western style of taxation and remittances—these companies are gold mines. I use Gusto in the U.S. not because I want to, but because I have to. Until that happens—scale will be a challenge.” Alongside his resignation, Okubanjo announced the release of his equity and debt holdings back to the company in what appears to be an effort to sever ties and allow for a fresh start.
The email, viewed as lacking accountability, deflected blame onto systemic inefficiencies rather than addressing the allegations of mismanagement and delayed remittances under his leadership. Despite his departure, questions remain about whether Okubanjo could face criminal liability or if the fallout will primarily be handled as a civil matter.
The resignation follows a series of allegations and growing public backlash surrounding Bento Africa’s handling of PAYE taxes and pensions. Earlier, we reported on the accusations made by the CTO of AltSchool Africa, who alleged Bento Africa was collecting PAYE taxes but remitting only a fraction to regulatory authorities. You can read our detailed coverage here.
Additionally, Okubanjo’s direct response to these allegations, which we covered in a follow-up article, sparked further questions about his leadership and accountability. Read more about his reply and the ongoing developments here.
Regulatory Investigations and Their Implications
The EFCC and LIRS probes underscore the growing focus on compliance and accountability within Nigeria’s tech ecosystem. The investigations are centered on allegations of unremitted taxes, delayed pension contributions, and potential financial mismanagement.
Should these investigations uncover fraudulent activities or intentional non-compliance, Okubanjo and other executives could potentially face criminal charges. Conversely, if the findings point to systemic lapses or negligence, the resolution may take the form of civil penalties and fines. Either outcome will have a significant impact on investor confidence and could set a precedent for how startups address similar challenges.
Bawo Egbakhumeh, the newly appointed CEO and Registrar of the Compliance Institute, Nigeria, highlighted the gravity of the situation:
“Regulatory compliance isn’t just a legal requirement; it’s a cornerstone of trust and sustainability. The ongoing investigations into Bento Africa are a wake-up call for all startups to establish and maintain robust governance frameworks.”
What’s Next for Bento Africa?
Bento Africa is expected to announce an interim leadership team in the coming days. This transition period will focus on stabilizing the company and addressing operational and reputational challenges. Key priorities for the company include:
- Compliance Overhaul: Strengthening financial and operational transparency to address regulatory concerns.
- Stakeholder Engagement: Rebuilding trust with clients, employees, and investors through open communication and visible reforms.
- Strategic Partnerships: Exploring collaborations and funding opportunities to ensure business continuity.
The new leadership team will need to act swiftly to mitigate potential fallout and restore the company’s standing in the industry.
Broader Implications for Nigeria’s Tech Sector
The challenges faced by Bento Africa highlight the urgent need for governance reforms within the tech ecosystem. As the sector continues to attract significant investments, ensuring transparency and accountability will be critical to sustaining growth and investor confidence.
For investors, the situation raises questions about due diligence and risk management when funding Nigerian startups. If the investigations lead to significant financial penalties or criminal proceedings, Bento Africa’s valuation and operations could be at risk, making investors more cautious about committing capital to startups without robust compliance measures.
Egbakhumeh reiterated the importance of compliance:
“This isn’t just about Bento Africa—it’s a cautionary tale for the entire ecosystem. Startups that integrate compliance and governance into their DNA will define the future of Nigeria’s tech industry.”
A New Chapter or an Ongoing Crisis?
Okubanjo’s resignation and the release of his equity and debt mark the end of a significant chapter for Bento Africa. However, the full implications of this move and the ongoing investigations remain uncertain. Whether the fallout leads to criminal charges, civil penalties, or broader regulatory reforms, the coming months will be pivotal in shaping both Bento Africa’s future and the trajectory of Nigeria’s tech ecosystem.
For now, the industry is watching closely and awaiting the next developments in this high-profile case.
