Hundreds of traders and customers have reportedly been thrown into panic in Osogbo, Osun State, after a foodstuff business allegedly disappeared with customers’ money following months of selling food items at heavily discounted prices.

The store, located around Odi-Olowo, opposite the NEPA office, reportedly attracted customers by offering rice, beans, semovita, spaghetti, cooking oil and other food items at discounts of up to 80 per cent.

Rice Sold For As Low As ₦20,000

According to reports, a 50kg bag of rice that ordinarily sold for between ₦60,000 and ₦70,000 was offered for as low as ₦20,000 to ₦30,000.

A carton of Indomie noodles reportedly sold for between ₦5,000 and ₦7,000, compared with a prevailing price of about ₦14,000, depending on the quantity ordered.

Other food items were reportedly sold at discounts of at least 50 per cent.

Customers were, however, required to wait about seven days before collecting their orders.

Final Orders Spark Panic

The business reportedly intensified its activities on social media during its latest sales run, attracting hundreds of customers from different parts of Osun State.

Monday was reportedly scheduled as another collection day after the company had received a large number of pre-orders.

However, when customers arrived at the premises, they allegedly found the store empty.

Attempts to reach the operators by telephone reportedly failed, triggering panic among customers who had already paid for their orders.

The development subsequently attracted the attention of the police, with affected customers calling for an investigation and recovery of their funds.

Similar Incident Reported In Same Area

Spiceraadiong gathered that the latest incident has also triggered comparisons with an alleged previous food-related investment scam in the same Odi-Olowo area.

Residents reportedly recalled the controversial Hero’s Merchant/Hero’s Capital case, which was linked to foodstuff-related investments.

The similarities have heightened concerns among residents and traders over businesses offering unusually cheap food items or investment opportunities.

Similar Scam Reported In Auchi

A similar incident was also reportedly recorded in Auchi, Edo State, in July last year.

According to reports, an operator allegedly sold 50kg bags of rice for about ₦20,000, despite the prevailing price being around ₦60,000.

The operator reportedly attributed the cheap prices to a Federal Government subsidy and palliative programme.

He allegedly sold more than 100 bags on some days and collected money from more than 1,000 people before reportedly disappearing.

Victims were subsequently said to have discovered that they had collectively lost between ₦20 million and ₦30 million.

Police Investigation Awaited

The latest Osogbo incident has yet to be conclusively established as a Ponzi scheme or fraud case.

Affected customers are calling on the police and other relevant authorities to investigate the business, identify its operators and help recover the money paid by customers.

The incident also serves as another warning to consumers to exercise caution when confronted with unusually large discounts, particularly where substantial upfront payments are required before goods are delivered.