Osogbo residents lost millions of Naira in food Ponzi scheme

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By Shina Abubakar, Osogbo

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There was panic in Osogbo, Osun State, on Monday after a food outlet allegedly operating an investment scheme shut its premises, leaving hundreds of customers worried about funds they had paid for food supplies.

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The outlet, Global Food Initiative, reportedly began operations in early August around the Odi-Olowo area of the state capital, offering food items to participants at prices said to be significantly below prevailing market rates.

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Participants were required to pay in advance for food items they would collect later, with some customers reportedly investing amounts ranging from N50,000 to as much as N50 million.

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The items reportedly included 50kg bags of rice and various sizes of vegetable oil, among other food products.

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However, concerns heightened after an anchor of a radio programme in the state described the scheme as fraudulent during a live broadcast and warned residents against participating.

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The development reportedly triggered panic among participants, who besieged the outlet on Monday, only to find the premises locked.

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More than 200 people reportedly gathered at the location, with several participants expressing concern over funds they had paid into the scheme.

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One trader was said to have invested N50 million in rice, while another participant, identified as Kafayat, reportedly claimed to have paid N1 million.

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Other customers displayed receipts for payments ranging from N50,000 to N250,000 and above as they demanded clarification on the status of their investments.

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Tension reportedly rose as some of the aggrieved participants threatened to damage the building housing the outlet’s warehouse, prompting the intervention of police operatives.

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As of the time of filing this report, some of the participants who arrived at the premises as early as 7:30am were still waiting, hoping that the operators would return and address their concerns.

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Confirming the development, the Osun State Police Command said it deployed personnel to the area after receiving information about a possible breakdown of law and order.

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A police spokesperson said the command became aware of the alleged scheme only after officers arrived at the scene to prevent a possible riot.

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“We were not aware of the scheme until we got to the area to curb breakdown of law and order that we heard of the scheme.

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“As of the time of speaking with you, we are still waiting for someone to report the incident and provide details to the police. However, we are monitoring the situation to avoid crisis,” the police said.

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