Auchi Community Stunned by Elaborate Rice Ponzi Scheme Worth Over ₦20 Million
Auchi, Edo State – July 25, 2025
A sophisticated Ponzi scheme has left the Auchi community in Edo State reeling, as authorities investigate a fraudulent operation that defrauded over 1,000 residents of more than ₦20 million. The elaborate scam, uncovered this week, involved a fake rice distribution initiative purportedly backed by the Federal Government, exposing the vulnerability of communities grappling with Nigeria’s rising cost of living.
The scheme, orchestrated by an unidentified individual, began earlier this month when the suspect opened a shop in Auchi selling foodstuffs. Promising a groundbreaking deal, the operator advertised 50kg bags of rice at a steep discount—₦20,000 instead of the market price of ₦60,000—claiming it was part of a government-subsidized palliative empowerment program. To lend credibility, the scammer distributed professionally designed banners and flyers, complete with a non-existent Corporate Affairs Commission (CAC) number, and employed a team posing as government workers.
What started as a modest promotion quickly snowballed, with over 100 bags of rice sold within days. As demand surged, the suspect encouraged customers to pre-pay ₦20,000 each to reserve their bags, promising a fresh stock delivery from customs. The allure of affordable staples amid Nigeria’s food inflation, which reached 40.66% in May 2025 according to the National Bureau of Statistics, drew in not only local residents but also savvy traders looking to resell at a profit.
However, the scheme unraveled when the suspect and his team vanished after Wednesday, leaving behind an empty shop, switched-off phone lines, and a trail of furious victims. The scam’s sophistication is evident in its cash-only payment structure, a tactic that has complicated efforts to trace the perpetrators, as noted by the Economic and Financial Crimes Commission (EFCC) in a 2022 report highlighting the prevalence of such methods in 65% of successful Nigerian scams.
Yesterday, angered residents descended on the abandoned shop, destroying property and salvaging what little remained. The incident has sparked a broader conversation about the need for vigilance, with local leaders calling for enhanced public awareness campaigns to combat fraudulent schemes exploiting government initiatives.
The Auchi scam echoes a troubling trend, with the Nigeria Police Force reporting a 30% rise in fraud cases in Edo State over the past year. It also reflects the challenges of implementing genuine palliative programs, such as the federal government’s 2023 rice distribution effort, which has been hampered by corruption and poor oversight.
Authorities, including the EFCC, have launched an investigation, urging victims to come forward with evidence. “We are committed to tracking down those responsible and bringing them to justice,” said an EFCC spokesperson. Meanwhile, community leaders are working with local law enforcement to restore trust and prevent future incidents.
As Auchi recovers from this blow, the incident serves as a stark reminder of the ingenuity of scammers and the resilience of a community determined to rebuild. Residents are encouraged to verify the authenticity of such offers and report suspicious activities to the authorities
