Reported by Ariajegbe Sylvia Esezobor
There was palpable tension in Osogbo, the Osun State capital, on Monday following the sudden disappearance of operators of a cheap food initiative known as Global Food Initiative, as hundreds of residents who had deposited various sums to buy discounted food items rued their losses and called for the recovery of their money.
The company, located in the Odi-Olowo area of Osogbo, opposite the NEPA Office at Omokayode Shopping Complex, began operations in early August 2026, according to Vanguard. It offered food items to participants at prices significantly below prevailing market rates, requiring customers to pay in advance for items they would collect about a week later. A flier circulated around strategic locations in Osogbo, sighted by The Guardian, advertised a 50kg bag of rice for N27,000, 25 litres of Kings Oil for N30,000, 5 litres of Golden Terra groundnut oil for N8,000, and a packet of Golden Penny spaghetti for N10,000, among other products.
The scheme initially appeared to deliver on its promises. Some early customers received their items within the stipulated seven-day period, a development that attracted hundreds of other residents, including businessmen and wholesale traders, to invest larger sums. One trader was said to have invested N50 million in rice, while another participant, identified as Kafayat, reportedly paid N1 million. Customers displayed receipts for payments ranging from N50,000 to N250,000 and above as they demanded clarification on the status of their investments.
However, the scheme began to unravel on Sunday, September 27, when a presenter on a private radio station in Osogbo warned residents against the initiative during a live broadcast, describing it as fraudulent. The warning triggered panic among participants, who besieged the outlet on Monday morning, only to find the premises locked and the operators nowhere to be found. More than 200 people reportedly gathered at the location, with some threatening to damage the building housing the outlet's warehouse, prompting the intervention of police operatives.
Mistura, a resident who spoke with PUNCH Online, said she deposited N300,000 into the scheme to purchase 11 bags of rice at N27,000 per bag. The 11 bags would have cost her N605,000 at the current market price of N55,000 per bag. "I got here this morning and met a crowd waiting to be attended to. But the operators were nowhere to be found," she said. "I was warned, but I never thought they would run away this early."
Another investor, Olamide, said she paid N1.2 million for various food items to be used for the upcoming wedding ceremony of her stepdaughter. She explained that she made the payment through an account number 5287459667, bearing the name Global Food Initiative and domiciled in an online microfinance bank, the previous Monday. "The items I paid for were to be used for the wedding ceremony of my stepdaughter," she said. "Before I paid the last sum of N1.2m into the scheme last Monday, I had earlier collected two gallons of five litres of groundnut oil from the operators. I paid N30,000 for each. But it costs far more in the market. I am in a serious mess here."
Another investor, who spoke on condition of anonymity, said the operators commenced operations more than three weeks ago and told those investing that the initiative would run for six months. She said the panic created by the radio presenter caused the operators to flee when they saw the huge crowd that stormed their office on Monday. "The operators actually reported here on Monday, but when they saw the agitated crowd, they ran away," she said. "A woman deposited N35m for various food items, another man showed us a receipt of N10m. Some hoodlums had attempted to break into the storeroom of the operators, but police personnel were deployed to stop them."
The Osun State Police Command Public Relations Officer, Abiodun Ojelabi, said operatives were deployed to the scene to prevent 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," he said. "It was there that we began to identify that a company identified as Global Food Initiative has been collecting people's money, promising to subsidise food items while they pay in advance." The police spokesperson confirmed that the command became aware of the scheme only after officers arrived at the scene. "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," he said. "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."
Premium Times reported that as of the time of filing its report, the operators were unreachable, while the circumstances surrounding the closure remained unclear. A resident, Adabanija Sulaiman, who is not a victim, said the affected customers were planning a protest to demand the recovery of their money. He likened the business model to schemes in which operators persuade people to part with small amounts of money with promises of receiving larger returns. "It is like those people that will say you should come and invest with small money and get a large amount of money," he said. "They're selling their food stuff at low prices, so many people have paid for them to buy it at low prices and resell at the normal prices. Now they have scammed them and run away with their money."
The scheme bears the hallmarks of a classic Ponzi arrangement, in which early investors are paid with funds from later investors, creating an illusion of legitimacy that attracts increasingly larger sums until the operators disappear. The discounted prices advertised by Global Food Initiative were far below prevailing market rates, a red flag that some residents overlooked because early customers received their orders. The requirement that payments be made in advance, with collection delayed by a week, gave the operators a window to accumulate funds before disappearing. The involvement of an online microfinance bank account also complicated the ability of victims to trace their money, as such accounts are often opened with minimal documentation and can be abandoned quickly.
The Osun State Government has not yet issued a formal statement on the incident. In March 2026, the Osun State Police Command clarified the circumstances surrounding the arrest of one Soladoye Fasanjo Keji over an alleged N8.5 million Ramadan food package fraud, in which funds meant for the procurement and distribution of Ramadan food packages to vulnerable residents were allegedly diverted. The government has previously warned residents against participating in unregulated investment schemes, and the latest incident underscores the need for stronger public awareness and consumer protection measures.
For the hundreds of residents who deposited their savings, wedding budgets and business capital into the scheme, the disappearance of Global Food Initiative represents a devastating financial blow. Some had invested sums that took years to accumulate, and others had borrowed money to participate in what they believed was a legitimate opportunity to buy food at affordable prices amid rising inflation. The police have urged victims to come forward and report the incident formally, as the command cannot commence a full investigation without a formal complaint. As Ojelabi put it, the police are monitoring the situation to avoid crisis, but the recovery of the funds will depend on whether victims provide the information needed to identify and trace the operators. For now, the operators remain at large, their phone numbers unreachable, and the residents of Osogbo are left to count the cost of a scheme that promised cheap food and delivered only loss.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters News | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments