Osogbo Food Bonanza Turns Nightmare as Discount Vendor Vanishes With Customers’ Millions

Osogbo Food Bonanza Turns Nightmare as Discount Vendor Vanishes With Customers’ Millions

Panic erupted in Osogbo, Osun State, on Monday after a food distribution outlet offering heavily discounted food items suddenly shut its premises, leaving hundreds of customers stranded and worried over millions of naira reportedly paid in advance for supplies.

The outlet, identified as Global Food Initiative, was located in the Odi-Olowo area of Osogbo, opposite the former NEPA office.

The business had reportedly attracted customers with unusually low prices for essential food commodities, including rice, cooking oil, spaghetti, semovita and other food items.

Customers were required to pay in advance and return after about a week to collect their purchases.

According to reports from the area, a 50kg bag of rice was being sold for about N27,000, far below the prevailing market price. Radio Nigeria reported that 25 litres of cooking oil was offered for N30,000, while a pack of spaghetti was sold for about N10,000.

The attractive prices reportedly drew traders and other residents from Osogbo and neighbouring communities, with some customers placing orders in large quantities for resale or personal events.

But the seemingly lucrative arrangement turned into anxiety on Monday when customers arrived at the premises expecting to collect their goods and found the outlet locked.

READ ALSO:

• Lagos Club Robbery: Police Arrest Suspect After N5m Bounty
• APC Sweeps Enugu LG Election, Wins All 17 Chairmanship, 260 Councillorship Seats
• Passenger Dies After Jumping From Moving Bus In Lagos

Attempts to reach the operators by telephone reportedly failed, leaving customers gathered around the premises demanding answers and seeking the return of their money.

PUNCH reported that one customer, identified as Mistura, said she paid N300,000 for 11 bags of rice at N27,000 per bag. Another customer, Olamide, said she paid N1.2 million for various food items intended for a family wedding.

The newspaper also reported that some participants displayed evidence of much larger payments, with one woman reportedly claiming to have paid N35 million, while another man allegedly presented a receipt showing N10 million.

Vanguard similarly reported that customers presented receipts for payments ranging from tens of thousands of naira to much larger sums, while one trader was alleged to have committed as much as N50 million to the scheme. These figures are claims by participants and have not been independently established as the total amount involved.

Tension reportedly rose at the premises as some angry customers threatened to damage the building housing the outlet’s warehouse.

The development prompted the deployment of policemen to the area to prevent a breakdown of law and order.

The spokesperson for the Osun State Police Command, Abiodun Ojelabi, confirmed the deployment, saying the police became aware of the situation after arriving at the scene to control the growing tension.

According to him, the command had not yet received a formal complaint from affected customers at the time of his statement, but officers were monitoring the situation.

He said the police had discovered at the scene that Global Food Initiative had been collecting money from people with promises of supplying subsidised food items after advance payment.

The incident has revived concerns over schemes that use exceptionally low prices to attract large numbers of customers before collecting advance payments.

For many of those affected, what initially appeared to be an opportunity to beat the rising cost of food has suddenly become a desperate search for their money and answers.

The Osogbo incident also bears similarities to reports of an earlier case in Auchi, Edo State, in July 2025, where a man reportedly sold 50kg bags of rice for N20,000, attracted more than 1,000 pre-orders and allegedly disappeared after collecting advance payments. Reports at the time put the alleged losses at more than N20 million. However, those figures were based largely on social-media reports and were not accompanied by an official police confirmation in the reports reviewed.

The latest development has therefore triggered renewed calls for residents to exercise caution before making large advance payments for commodities being offered at prices substantially below prevailing market rates.

As of the latest reports, the operators of Global Food Initiative had not publicly explained the closure or disclosed when the business would reopen, while affected customers continued to await clarification and possible recovery of their funds.

Osogbo Food Bonanza Turns Nightmare as Discount Vendor Vanishes With Customers’ Millions