Heat the olive oil in a large pot over medium heat. Add the diced onion and cook until it softens, about 5 minutes. Stir in the minced garlic and cook for 1 minute more.
Add the smoked paprika and cumin to the pot. Stir for 30 seconds until the spices smell fragrant.
Pour in the rinsed lentils, diced tomatoes, vegetable broth, chopped roasted red peppers, and bay leaf. Bring the mixture to a boil.
Reduce the heat to low, cover the pot, and simmer for 25 to 30 minutes until the lentils are tender but still hold their shape.
Remove the bay leaf. Taste and season with salt and black pepper. Ladle the stew into bowls and top each serving with chopped parsley. Serve with lemon wedges on the side.