Residents and traders in Osogbo, the Osun State capital, have reportedly lost money after a foodstuff business that offered heavily discounted prices allegedly disappeared overnight after collecting advance payments from customers. The shop, located around Odi Olowo, opposite the NEPA office, reportedly became empty on the day hundreds of customers were expected to collect their orders.
Key Highlights
- Customers reportedly paid in advance for heavily discounted food items.
- A 50kg bag of rice was allegedly sold for between ₦20,000 and ₦30,000.
- Some customers reportedly paid as much as ₦5,000 to ₦7,000 for cartons of Indomie noodles.
- The business reportedly operated a seven-day advance-order system.
- Earlier customers allegedly received goods, helping to build confidence in the business.
- Customers reportedly found the shop empty on the scheduled collection day.
- Contact numbers linked to the operators were reportedly unreachable.
- Victims are calling on security agencies to investigate and recover their money.
How the Osogbo Food Scam Allegedly Happened
The business reportedly attracted customers by selling food items at prices significantly below prevailing market rates.
A 50kg bag of rice, which typically sold for between ₦60,000 and ₦70,000, was reportedly offered for as little as ₦20,000 to ₦30,000.
A carton of Indomie noodles reportedly sold for between ₦5,000 and ₦7,000, compared with an estimated market price of about ₦14,000.
Other food items, including Semovita, cooking oil, beans and spaghetti, were also reportedly offered at discounts of 50 per cent or more.
Customers Paid Before Collecting Food
The reported business model required customers to place and pay for their orders in advance.
Customers were reportedly told to wait about seven days before collecting their purchases.
The arrangement initially appeared credible to many participants because some earlier customers reportedly received their orders.
That experience reportedly encouraged more people to participate and helped build confidence in the scheme.
The business later intensified its promotional activities on social media, attracting customers from different parts of Osun State and beyond.
Shop Disappears on Scheduled Pickup Day
Trouble reportedly began when customers arrived at the Odi Olowo location on the scheduled collection day.
Instead of meeting the business operators and collecting their food items, customers reportedly found the shop empty.
Phone numbers associated with the operators were also reportedly unreachable.
The development reportedly triggered panic among customers who had already paid for their orders.
Some victims are said to be traders who pooled funds or borrowed money to purchase the discounted food items, intending to resell them at a profit.
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Customers Protest as Police Intervene
The situation reportedly escalated into protests as affected customers demanded explanations and the return of their money.
Police reportedly intervened as tensions increased.
Victims are now calling on law enforcement authorities to identify and trace those behind the business and investigate the circumstances surrounding the disappearance.
They are also seeking the recovery of the funds paid for orders that were not delivered.
Previous Food Scam Reportedly Linked to Odi Olowo
The latest incident has reportedly drawn comparisons with an earlier scheme in the same Odi Olowo area.
A business reportedly known as Hero’s Merchant or Hero’s Capital was previously accused of operating a similar discounted-foodstuff arrangement before allegedly disappearing with customers’ money.
The reported similarities have heightened concerns among residents about businesses offering unusually cheap food items in exchange for substantial advance payments.
However, the circumstances surrounding the current case and any connection with previous schemes would need to be established by investigators.
Similar Food-Related Scams Reported Elsewhere
Discounted foodstuff schemes have also been reported in other parts of Nigeria.
A reported case in Auchi involved the sale of bags of rice at heavily reduced prices under claims linked to government subsidies or palliatives. The operators were reportedly accused of disappearing with between ₦20 million and ₦30 million.
Such cases have raised concerns about fraudulent schemes exploiting Nigerians’ demand for affordable food during periods of economic pressure.
Economic Hardship Increases Demand for Cheap Food
The rising cost of living has made heavily discounted food offers particularly attractive to consumers and small-scale traders.
For households struggling with food prices, an opportunity to purchase essential commodities at 50 per cent or more below prevailing prices can appear financially compelling.
Traders may also be attracted by the prospect of buying at a low price and reselling the goods for a profit.
However, consumer advocates and security experts have repeatedly warned against making large advance payments to businesses without adequate verification.
Victims Demand Investigation and Recovery of Funds
Affected customers are calling on security agencies to investigate the reported disappearance and trace the individuals behind the business.
They are also urging authorities to determine whether bank accounts or other financial channels linked to the operators can be identified and investigated.
The victims want those responsible to be brought to justice if the allegations are established and are seeking the recovery of their funds.
Osogbo Food Scam Raises Fresh Consumer Alert
The reported Osogbo food scam highlights the risks consumers can face when businesses offer goods at prices substantially below prevailing market rates while requiring full payment before delivery.
Consumers are advised to verify a business’s ownership, physical presence, transaction history and reputation before committing substantial funds.
Where prices appear significantly lower than the prevailing market rate, customers should also consider whether the offer is commercially sustainable and seek independent verification before making advance payments.
As investigations into the Osogbo incident continue, affected residents remain hopeful that the operators will be identified and that efforts will be made to recover the money reportedly lost by customers.
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