Residents of Osogbo, the Osun State capital, were left worried after a major food distribution company suddenly shut down and the phone lines of its suppliers were disconnected.
The company had attracted hundreds of customers by selling food items such as rice, cooking oil, spaghetti and semovita at prices far below the market rate. Customers were required to pay in advance.
Under the deal, buyers paid N25,000 and were promised a bag of rice two weeks later. A bag of rice currently sells for between N55,000 and N60,000 in Osogbo.
The cheap prices soon drew hundreds of people from across the city.
But on Monday, frantic customers gathered at the company’s premises in Odi-Olowo after its operations suddenly stopped without warning.
Investigations showed that some local traders had also put large sums into the scheme. They bought food items in bulk, hoping to resell them at retail prices and make profits.
With the premises locked, frustration and grief spread among those gathered outside. Many customers were left struggling to understand what had happened, with fears growing that their advance payments and life savings may have been lost.
