Osun residents lament as food scheme crashes

There was palpable tension in Osogbo, Osun State, on Monday, after operators of a cheap food scheme, Global Food Initiative, reportedly disappeared, leaving residents who had paid various sums for food items stranded.

Many of the residents, who had deposited money for the purchase of food items at prices below prevailing market rates, gathered at the organisation’s office in the Odi-Olowo area of Osogbo, waiting for the operators to open for business.

A resident, identified simply as Mistura, told PUNCH Metro that she deposited N300,000 last Wednesday to purchase 11 bags of rice at N27,000 per bag.

Mistura said the items were usually due for collection one week after payment, adding that the 11 bags of rice would have cost her N605,000 at the prevailing market price of N55,000 per bag.

Another investor, Olamide, said she paid N1.2m for various food items she intended to use for the forthcoming wedding ceremony of her stepdaughter.

She said she paid the money into a designated account in the name of Global Food Initiative with an online microfinance bank last Monday.

“I got here this morning and met a crowd waiting to be attended to, but the operators were nowhere to be found. I was warned, but I never thought they would run away this early. The items I paid for were to be used for my stepdaughter’s wedding ceremony.

“Before I paid the last N1.2m into the scheme last Monday, I had earlier collected two five-litre gallons of groundnut oil from the operators. I paid N30,000 for each, but they cost far more in the market. I am in a serious mess here,” she said.

Another investor, who spoke on condition of anonymity, said the scheme commenced operations about three weeks ago and that the operators told investors it would run for six months.

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She said panic reportedly followed a warning by a presenter on a private radio station in Osogbo on Sunday, with the presenter allegedly cautioning residents against the scheme.

According to her, the operators initially reported to their office on Monday but fled after seeing the large crowd that had gathered to collect their food items.

“The operators actually reported here on Monday, but when they saw the agitated crowd, they ran away. A radio presenter on a private radio station in Osogbo caused panic when he warned residents against the scheme.

“The agitated crowd that stormed this place early today forced the operators to run away. A woman deposited N35m for various food items, while another man showed us a receipt for N10m.

“Some hoodlums attempted to break into the operators’ storeroom, but police personnel were deployed to stop them. We are still waiting for the operators to come back and resume operations,” she said.

When contacted, the Osun State Police Public Relations Officer, Abiodun Ojelabi, said operatives had been deployed to the scene to prevent a breakdown of law and order.

Ojelabi said, “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.

“It was there that we began to identify that a company identified as Global Food Initiative had been collecting people’s money, promising to subsidise food items while they paid in advance.

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