Osun: Tension as investors loot warehouse belonging to food Ponzi scheme

Tension escalated in Osogbo, Osun State, on Tuesday as residents looted a warehouse linked to the Global Food Initiative, a cheap food scheme whose operators reportedly disappeared after customers paid millions of naira for food items.

The development followed Monday’s uproar at the organisation’s facility in the Odi-Olowo area of the state capital, where residents who had paid for rice, vegetable oil and other foodstuffs upfront gathered after the operators reportedly failed to deliver the items as promised.

DAILY POST gathered that the scheme had attracted customers by offering food commodities at prices below prevailing market rates, with buyers required to pay in advance and wait for collection, according to residents who spoke about the development.

One of the customers, identified as Mistura, said she paid N300,000 for 11 bags of rice at N27,000 per bag, adding that the same quantity would have cost about N605,000 at the prevailing market price.

Another customer, Olamide, said she paid N1.2m for different food items, which she intended to use for her stepdaughter’s forthcoming wedding ceremony.

“I got here this morning and met a crowd waiting to be attended to, but the operators were nowhere to be found,” Olamide said.

She added that she had previously purchased two five-litre gallons of groundnut oil from the operators for N30,000 each before making the N1.2m payment.

Residents said panic had increased after a presenter on a private radio station in Osogbo reportedly warned people about the scheme, prompting customers to rush to the organisation’s premises.

An investor, who spoke on condition of anonymity, said the scheme had commenced operations about three weeks earlier and that customers were told it would run for six months.

“Some customers had deposited substantial amounts, including N35m and N10m, for various food items,” he said.

He disclosed that efforts were being made to get the operators to return to the premises.

On Monday, police personnel were reportedly deployed to the area after some people allegedly attempted to break into the organisation’s storeroom.

The Osun State Police Public Relations Officer, Abiodun Ojelabi, had said the deployment was aimed at preventing a breakdown of law and order.

“There has not been any report by those affected, but to avoid a breakdown of law and order, police officers have moved to the scene,” Ojelabi said.

He added that police officers had identified the company as Global Food Initiative and established that it had been collecting money from people while promising to subsidise food items for customers who paid in advance.

“We are still waiting for somebody to come and give us detailed information about the issue. We are monitoring the situation,” the police spokesperson said.

However, by Tuesday afternoon, residents returned to the area and began removing food items from the warehouse despite heavy rainfall in Osogbo.

Items reportedly taken away included bags of rice, vegetable oil and other food commodities stored at the facility.

A report from the scene said police officers initially deployed to control the crowd struggled to disperse the residents, with some looters allegedly brandishing axes, knives and other dangerous objects.

Later reports indicated that armed police officers fired gunshots in an attempt to disperse the crowd and stop further looting, while the activity reportedly continued despite the increased security presence.

Several people were reportedly injured during the incident, while security personnel continued efforts to restore order around the warehouse as of the time of filing the report.

Osun: Tension as investors loot warehouse belonging to food Ponzi scheme