A sense of unease has gripped Osogbo, the capital of Osun State, following reports that a Ponzi-style food investment scheme, Global Food Initiative, has crashed. The scheme, which began operating in the state in early August 2026, aimed to provide subsidized food items to its subscribers. Subscribers were required to pay for their desired food items, with the initial price subsidized by half of the open market price.
According to a casual staff member of the scheme, who wished to remain anonymous, subscribers would pay for their desired items and collect them after eight days of investment. However, the situation took a turn on Monday when subscribers thronged the outlet in the Odi-Olowo area of Osogbo, following a report that the initiative was fraudulent. This led to aggressive subscribers mobbing staff, demanding either their money or foodstuffs.
One of the subscribers, Rukayat, expressed her concerns, stating that she had invested N1 million in the previous week and collected foodstuffs after eight days, but made another N2 million investment that was due on Wednesday. She demanded that the scheme provide her with her money. Another subscriber, Adewale Adegbite, said he had planned to invest but was fortunate to have avoided the chaos.
The scene outside the outlet was chaotic, with a large crowd gathered and six police patrol vans stationed to maintain law and order. The Osun State Police Command, through its spokesperson, DSP Abiodun Ojelabi, confirmed that officers were deployed to the scene to prevent a riot and property damage. The police had received information that the situation was becoming violent.
According to DSP Ojelabi, the police had not received any formal reports about the scheme, but they intervened to calm the situation and prevent further escalation. The police are still waiting for someone to provide proper information about the transaction between the company and the victims.
The Global Food Initiative's collapse has raised concerns about the proliferation of Ponzi schemes in Nigeria. Many Nigerians have fallen victim to such schemes, which often promise unusually high returns with little or no risk. The incident has also highlighted the need for regulatory bodies to monitor and crack down on such schemes.
The incident has left many subscribers counting their losses and calling for action to be taken against those responsible for the scheme. The police are yet to make any arrests or provide further information about the investigation.
Key points
- The Osun State Police Command deployed officers to the scene to prevent a riot and property damage.
- The scheme, Global Food Initiative, had been operating in the state since early August 2026.
- Subscribers were required to pay for their desired food items, with the initial price subsidized by half of the open market price.
