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

Tension rose in Osogbo, Osun State, on Tuesday as residents broke into a warehouse owned by the Global Food Initiative, a cheap food scheme. The incident followed a previous protest at the organization's facility in the Odi-Olowo area of the state capital, where customers who had paid for items like rice, vegetable oil, and other foodstuffs gathered after the operators failed to deliver as promised.

According to residents, the scheme offered food commodities at prices below market rates, requiring buyers to pay in advance with the expectation of collection later.

One customer, Mistura, paid N300,000 for 11 bags of rice at N27,000 per bag, noting that the same amount would have cost about N605,000 at current market prices. Another customer, Olamide, paid N1.2m for various food items intended for her stepdaughter's wedding. A resident reported that a radio presenter had warned about the scheme, causing customers to rush to the warehouse.

An anonymous investor stated that the scheme had been running for three weeks, with customers depositing large sums of money, including N35m and N10m.

Police were deployed to the area on Monday to prevent a breakdown of law and order after some customers attempted to break into the organization's storeroom. The Osun State Police Public Relations Officer, Abiodun Ojelabi, said the deployment aimed to maintain order but noted no reports from the affected individuals. He added that police were monitoring the situation and awaited detailed information from the affected parties.

By Tuesday afternoon, residents returned to the area, removing food items from the warehouse despite heavy rainfall. The situation became chaotic, with looters allegedly wielding axes, knives, and other dangerous objects. Police officers initially struggled to control the crowd but later fired gunshots to disperse the residents. Several people were injured during the incident as security personnel continued efforts to restore order.