Farmforte™ launched Agropartnerships in 2018 to bridge the considerable gap between farmers and the financing which farmers need to expand their business, and the model was to enable people to engage in profitable/low-risk investments in farms or trade commodities seamlessly
Three years later, one report stated the company, led by co-founders and co-CEOs, Osazuwa Osayi and Uyi Osayimwense, had witnessed immense growth.
“It currently has over 44,500 users, recording 6,542 new users alone since the beginning of 2021 (a 14.7% growth in user base in the first two months of 2021),” the report stated. “Agropartnerships has successfully sold 419,219 units on its platform and boasts an average of 12 hours for a farm/commodity cycle to get sold out,” it added.
Fast forward to August 2021, Farmforte, through its investment subsidiary, Forest Capital, announced the acquisition of Kayvee Microfinance Bank, which was registered with the CAC in 2017.
“We’re absolutely delighted to announce our milestone acquisition of Kayvee Microfinance Bank to help us create synergy between socio-economic empowerment, agriculture, and the finance sector. This is a major starting point in our bid to bridge access to requisite financing across the agriculture value chain.
“By carefully identifying investment opportunities which have the potential for strong socio-economic impact, Forest will look to cover small and medium scale farmers, infrastructure development, supply chain operations, distributors, wholesalers, retailers, and Ag. Tech-driven startups,” Farm Forte, whose last post was October 2021, wrote on Instagram.
By this time, Farmforte – Agropartnerships by default – had become the darling of many Nigerians and government officials spread the company’s gospel as far as they could.
The Governor of Edo, Godwin Obaseki, when Farmforte Agro & Allied Solutions Ltd unveiled a new Cashew Processing Facility in Benin on November 27, 2021, stated that “the government will continue to support the private sector to enable them create more job opportunities, expand into new markets and reduce risk. With this new facility, Farmforte is adding value and encouraging farmers to increase the harvesting of cashew nuts and fruits, enabling Edo State to become the number one cashew producer in Nigeria.”
Speaking on the acquisition, Osazuwa Osayi, Farmforte’s co-Chief Executive Officer, said: “This new processing facility is in line with our long-term commitment to continuously create sustainable outcomes in the agri-value chain. We believe that this facility will enable us to increase cashew nut processing capacity and export less raw commodity; thereby increasing Nigeria’s access to the global market.”
But, 2021/22 proved to be the year of question marks for Agropartnerships.
In December 2021, Agropartnerships claimed there was a challenge with the ‘Cashew 04 cycle’ that disrupted payment activities. But by January 2022, Nairametrics reported that a host of the investors (with 1-5 units of cashew investment) that the platform promised payment within a stipulated 3 to 7 days got nothing.
Agropartnerships responded to the outcry from investors in January 21, 2022, citing global supply chain disruptions, and the COVID-19 effect.
In the letter to ‘Agropartners,’ the company stated that there would be a town hall meeting where “robust updates on outstanding concerns and questions” will be shared.
In particular, we will be providing definite timelines for all cycle payments, and sharing our future plans for the business, We are working on new timelines for all pending and outstanding payouts. We do not want to give unrealistic expectations, and so we ask for your patience as we make these critical decisions.
Agropartnerships in a joint statement signed by co-CEOS, Osazuwa Osayi and Uyi Osayimwense
By February 2022, Agropartnerships shared a video by co-CEO, Uyi Osayimwense who said the team was working on two pertinent questions: “How did we get here?” and “How do we ensure it does not repeat itself?”
Osayimwense kept apologising all through the over three-minute video and said the company was taking corrective measures to ensure the situation does not repeat itself.
He further tried to downplay the length and extent of damage by suggesting the crisis had characterised only the “past few weeks” but in reality, investors had started complaining since 2021.
The company, during a stakeholders meeting, which also featured the presentation of a consolidated payout plan, said payouts will resume in July 2022.
Osayimwense said the payout strategy presented would enable the business to fully return to healthy financial standing.
“We have spent a huge amount of time since the last webinar with our team of experts, speaking with employees, contractors, institutional investors, agencies, technical partners, and some agropartners,” Osayimwense said.
“I can assure you that everyone has worked tirelessly with us and our internal teams to fully analyse the situation – past and future maturing cycles, operations, future cash flows, risks, and opportunities.
“It is based on the outcome of this deep assessment that we have come up with the most viable way out of the present challenges.”
Also speaking on the payout schedule, Osazuwa Osayi said: “To this end, we have halted all payouts from February 18. While we plan to begin interest payments in July 2022, all payments will be made in three batches; July 2022, October 2022, and February 2023.”
But in March 2022, the Securities and Exchange Commission (SEC) sealed the company’s offices for allegedly engaging in illegal investment activities.
SEC accused the company of carrying out capital market activities without a license.
In a mail sent to its investors, Agropartnerships said its bank accounts were placed on hold since its offices were sealed.
“Since our last communication, we have been working diligently to ensure our obligations to you are met. As you may have read in the media, on March 14, 2022, our offices were sealed and a hold was placed on our bank accounts,” the mail read.
“We assure you that Agropartnerships operates with the highest ethical standards and are cooperating with various regulatory bodies to ensure all ongoing assessments proceed smoothly.
“As an organisation built on integrity, we appreciate and support the mandate of all regulators in Nigeria and are confident that all concerns will be critically examined and promptly resolved.
“In the meantime, with an understanding of the urgency for payouts, we will continue to work intensely, doing all we can to ensure every pending issue is settled, after which, schedules would reflect on your dashboard and shortly after, payments will commence.”
By August 2022, it was obvious that Agropartnerships was not going to resume payouts to its investors.
By this time, Farmforte had incorporated another company, Farmforte Global AG (Farmforte Global SA) (Farmforte Global Ltd), in Zug, Switzerland on May 6, 2022.
The management includes Osazuwa Osayi, Uyi Osayimwense, and Prince Henry Ovo Erimodafe.
This is suggestive of an investor fund diversion from Farmforte Agro to Farmforte Global AG. And, when the SEC shut down its office, the company found a window for a full exit.
The company never shared a document – or sent an email – to investors showing its books and how much ‘global supply chain or COVID-19’ had affected its finances.
You would argue that they were already planning an exit from the Nigerian market and had it all lined up by May 2022. Farmforte, incorporated in 2014, is, however, still registered as a company on CAC’s website. Meanwhile, the Agropartnerships website is offline.
In December 2022, Agropartners’ complaints had piled up to a long list of investors accusing the company of holding on to their money. And, the Federal Competition and Consumer Protection Commission (FCCPC) replied to a complaint, but, there is no indication that they did more to get Agropartnerships to pay investors.
When we reached out to former employees, one returned with the response saying: “In all honesty, they shrouded that part of the business in secrecy so much, there are only a very few people who can tell.”
The former employee was responding to a question on non-payouts to investors and if the company was making any efforts to address the situation.
They shut down in 2022 and they didn’t relay any message, we stopped receiving salaries for months, heard rumours like everybody else from the news and then one day some people came and sealed the building.
“But they ruined lives shaa, like mine…Not been able to get a decent job since. Anybody hearing you associating with them just runs away.”
By June 2023, the light at the end of the tunnel dimmed completely for investors.
Customers’ complaints to Farmforte’s Agropartnerships
Agropartnerships has a 2.8 rating on the App Store influenced by complaints from investors.
One of the reviews is from a user in December 2021 who wrote: “I invested via your app and now pay day is over 10 days now and you have refused to pay me! Pay me my hard-earned money, Farmforte and Agropartnership. You have already caused I and my family untold hardship this Yuletide season. Pay me my money!!!!!“
If Agropartnerships was ever on Playstore, it is no longer available.
The last post – April 22, 2022 – on Agropartnerships’ Instagram page asked its followers to ‘unfollow the page and report on Instagram’ a page which was supposedly impersonating its own, but the comment section is filled with complaints.
A user, @angy_fresh who claimed to have invested ₦5 million, wrote: “These people have wrecked me… All the money I saved up in my plenty years of working gone on this investment. I invested to have another source of income as people encouraged and you guys went with it 😢😢😢. Ah, you guys will not have peace of mind…“
When we reached out, @angy_fresh responded saying the Agropartnerships app stopped working, and all efforts to try to reach the company have failed.
“I started working in a bank in 2012 as a contract employee because I have an HND, so I don’t earn much, I had always wanted to invest in something else so I could have another source of income. But since I didn’t know how to go about it, I kept saving up. In 2020, a colleague of mine told me about @agropartnerships. He said they are reliable and their return rate is good. By 2021, I had already saved up to ₦5 million because I am so heavy on savings.
“In October 2021, I decided to invest ₦2.5 million first in potatoes, and when I saw how responsive they were, I decided to invest the remaining ₦2.5 million in December 2021. I was seeing the return on investment in the app and when I tried to withdraw, the application wouldn’t let me. I reached out to them via calls, emails and messages but nothing changed.
“Now the app is not working, WhatsApp messages are not delivering, calls are not going through, and emails not working as well. The Instagram page is only on display but not active because no one responds… I’m so lost and I cry every day that I wake up.”
Another user, @olaledey, wrote:
It’s been over 2 years since I have been scammed by you guys of 6 million naira!!!! Why are you guys quiet?!!! Please I need my money back!!!
It is the same story on Facebook, and Agropartnerships has failed to respond to any of the complaints.
“The app is not even opening on my phone, when are we going to get paid. You stopped replying mails, you are planning another payout plan I guess, since your July is not yielding any positive result,” a user wrote on Facebook in July 2022.
The founders have not responded to an email sent for them to respond to the allegations of fraud as of press time.
This story is reminiscent of Oluwole Azeez Saheed, founder of FarmKonnect Agribusiness Nigeria Limited, who was wanted for investment fraud worth over ₦50 million.
This followed a petition by Chive GPS to place FarmKonnect founder on Interpol global red notice for obtaining money by false pretence and investment fraud.
Are customers’ funds protected?
Leadway Assurance listed Farmforte Agro as one of its partners, where the insurance company stated on its website that “Leadway Assurance helps to provide a range of Agricultural Insurance protection to their farmers leveraging its range of agricultural insurance policies in its portfolio.”
In an email response to how much investors are covered in the insurance policy, the company said:
We are unable to recover any funds from the stated Agritech platform [Farmforte Agro]. This is because our contractual obligation is only limited to the insurance of the Agricultural projects of the Agritech platform brought to Leadway for Insurance covers. Unfortunately, we are not under any contractual obligation to the individual investors under the platform.
Leadway Assurance’ response to Technext
Leadway asked customers to lodge complaints with the SEC – who shut the offices of Farmforte – or read the FAQ document.
On its FAQ page, the SEC only states that “Prospective investors should avoid any investment they do not understand. Find out how and in what product your money will be invested. Where the promised rate of returns is abnormal e.g. above 20% per annum, the genuineness of the investment is in question. Ensure that the guarantee of your returns is not based on recruiting new investors.“
The SEC does not recognise Farmforte or Agropartnerships, and so, may not be able to help recover customer’s funds.
But investors can take the following steps:
- Report the incident: The investors should immediately report the case to the appropriate law enforcement agencies, such as the police or the Economic and Financial Crimes Commission (EFCC). They should provide all relevant details and evidence of their investments and alleged fraudulent activities of the platform. It has to go beyond social media.
- Gather evidence: It is crucial to gather as much evidence as possible to support their case. This may include transaction records, communication with the founders/customer service team, and any other documentation related to their investments.
- Consult with legal counsel: Seeking advice from a lawyer experienced in financial fraud and investment disputes is highly recommended. A lawyer can guide the investors on the legal options available to them and help them understand their rights and potential courses of action.
- Contact regulatory authorities: Investors can reach out to relevant regulatory bodies in Nigeria, such as the Securities and Exchange Commission (SEC) if the investment platform falls under their jurisdiction. These authorities may have procedures in place to address such issues and can provide guidance on the next steps.
- Raise awareness and join forces: Investors who have been defrauded can collaborate with others who have faced similar situations. By joining forces, they can raise awareness of the scam, share information, and potentially take collective legal action against the founder and the investment platform.
- Pursue civil litigation: Depending on the circumstances, the affected investors may choose to pursue civil litigation against the founder and the investment platform. A lawyer can assist in initiating legal proceedings and seeking compensation for their losses.
- Be cautious of recovery scams: Unfortunately, in the aftermath of financial fraud, individuals may fall victim to recovery scams. They should exercise caution and avoid engaging with individuals or organisations that promise to recover their funds in exchange for upfront fees. It is advisable to consult with trusted legal professionals or authorities before taking any action regarding fund recovery.
It is essential for affected investors to act swiftly, gather evidence, and seek professional advice to maximise their chances of recovering their funds or pursuing justice in such cases.
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