Osogbo is boiling as thousands of investors weep, shout and threaten to break down doors after the much-hyped Global Food Initiative — the food Ponzi scheme promising cheap rice — allegedly crashed.
What started last month as a “subsidised food” miracle has turned into a nightmare of lost millions.
The scheme, operating from its Odi-Olowo outlet in Osogbo, lured residents with an irresistible pitch: Pay half the market price for rice, oil, beans and other staples, wait eight days, and come pick up your food.
A casual staff who begged for anonymity explained: “Subscribers will pay for their desired food items that have been subsidised by half of their initial price at the open market. They pay now and come for pickup after eight days.”
For weeks, it worked. Early investors collected bags of rice and posted testimonies. That was the bait.
Radio Alarm Triggers Stampede
Hell broke loose on Monday morning after a presenter on a private radio station branded the Initiative a fraud.
By 6:30am, a mammoth crowd had besieged the Odi-Olowo office. Angry subscribers mobbed staff, banging gates, demanding food or refund.
“I had invested N1 million last week and I collected foodstuff eight days after, but I made another N2 million investment which will be due on Wednesday. Now we heard that it has crashed. They must provide my money!” cried Rukayat, one of the victims.
Another resident, Adewale Adegbite, said: “I wanted to invest this morning but I came here to see people breaking into their store in a bid to cart away foodstuff. I thank God I didn’t do it.”
When our correspondent visited, six police patrol vans were stationed at the outlet as officers struggled to prevent looting.
Police: No Official Complaint Yet
Osun Police spokesperson, Deputy Superintendent Abiodun Ojelabi, confirmed deployment to prevent riot.
“There have not been any reports, but to maintain peace and order, the police have to move into the scene to calm the situation and also avoid property damage. People will have to pay in advance and collect their goods after one week. We are still waiting for someone who will give proper information,” Ojelabi said.
Behind the food subsidy lies the classic Ponzi playbook — use new investors’ money to give old investors cheap rice until the cash dries up.
From MMM to Loom, to Chinmark, to this new rice trap, Osun residents have once again learned the hard way: when the food deal looks too sweet to be true, it will soon sour.
