How Nigerians lost over N.9bn to logistics investment scam

After five years of waiting to have a child after her marriage, Mrs Adaora Okoro finally saved money to explore In vitro fertilisation (IVF) as counselled by her doctors. But the process would take some months. So, instead of keeping the over N1.5 million her husband gave her for the procedure, she decided to invest it in a logistics company called Greywolf Logistics. To her, it felt like the most sensible thing to do at the time as she was approached by a friend who told her how she had been earning N60,000 every month as Returns on Investment (ROI) after paying N500,000 for a motorcycle which the company used to engage dispatch riders for logistics purposes.

Mindful of an investment scam that has plunged millions of Nigerians into debt and suffering, Adaora made a discreet inquiry from dispatch riders on whether they could really make N60,000 in a month.

She said, “Some of them said they remitted N15,000 weekly to their employees. So, I felt since Greywolf had the customers, it wouldn’t be difficult for them to achieve.”

After the assurance, Adaora deposited the N1.5m for three motorcycles into the Zenith Bank account of the company bearing the name, Fespan Travels and Tours, in January, 2023. She was told that after payment she had to give the company a one-month grace period to search for a rider after which her ROI would be paid the following month.

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She said, “So, the first ROI I received was in March; I received N180,000, but when it was time to receive the next payment in April, things went awry. I did not get any money. I called Felicia (a staff of the company). She said I should wait as they were having problems. Since then it was one story or the other. Then she stopped picking my phone calls or responding to my messages.”

Like Mrs Adaora, it is similar tales of agony for the nearly 400 subscribers who keyed into such an investment scheme with the hope of making supplementary income to support their families’ financial needs.

Company unregistered

According to the Nigeria Deposit Insurance Company (NDIC), Nigerians have lost more than N912bn to various Ponzi schemes and related frauds across the country in the last 23 years.

Daily Trust investigation revealed that while Greywolf looks like a good investment to put money in, a check on the website of the Corporate Affairs Commission (CAC) showed that the company is not registered.

However, a further check on the affiliate company, Fespan Travels and Tours, where most of the subscriber’s paid money into, revealed that Fespan is a registered company since 2009 and it’s headed by one Felicia Aituajeme Iriogbe who was the managing director.

It is also identified as a Private Unlimited Company.

The receipts shared by some of the victims with Daily Trust showed that the account of Fespan was used for payments while the document of agreement had the logo of Fespan and Greywolf on it.

Similarly, the Facebook page of Fespan had fliers promoting investment in Greywolf Logistics.

A check on the social media handles of Greywolf indicated that the company also received money for vans and Sienna buses purportedly for the same logistics scheme.

How firm lures victims

Several posts on Fespan’s social media handles showed the company employed different strategies to lure Nigerians. Promotional videos were deployed in some instances in addition to the use of various kinds of gifts to encourage investors to invest in more than three of their products. The gifts included motorcycles, fully paid holiday trips, refrigerators and ovens. The fliers also showed that the company collected N3.4m for an ROI of N350,000 in 24 months.

It also encouraged that anyone who brought eight persons that bought motorcycles would get N100,000 in a month; for a Sienna, it was N250,000. while vans attracted N300,000.

‘How I lost N7m’

It was through the process of referral that Phillip Otigbo invested in the company after a friend wooed and informed him on how many people were earning good money from the purchase of motorcycles, buses and Sienna.

Otigbo explained that, “My friend told me that it was a logistics company that engaged in waybills and all that. I am not based in Abuja, but asked my friend to investigate the company well before putting my money into it.

“The paper works looked so real so I subscribed for 14 motorcycles amounting to N7m. My ROI was N420,000 per month. I got N2.1m in ROI and then it stopped.”

He lamented that, “I have moved out of my own house because it is under a threat due to the loan I collected. We have done everything to see how the company can refund our money. We engaged the EFCC, police and army but nothing has been done. What I heard is that the company has collected several millions from people that the owners are using to bribe officials of the agencies that are investigating the case.”

It was through the same referral that David Mbazor joined the platform.

He said, “A very close friend introduced me to Greywolf. Since the offer came from him, I didn’t hesitate. I went in and made some payments. I bought three bikes, paying N1.5m. It started for a few months and I got paid for about six months. After that the whole thing went crashing and my friend was in a serious predicament because I was not the only person he referred.”

Mr Onyebuchi and his associates are some of those most hit by the investment scam. They collectively invested N109m with the hope of receiving N13m monthly in 2021.

In a petition by his lawyers cited by Daily Trust and copied to the Inspector of Police (IGP), he stated that Felicia Aituajeme Iriogbe conspired with one Chidozie Heart to dupe them of their savings.

The petition reads in part: “Six months after they collected money from various people, their office was closed down and their phone numbers switched off permanently till date.”

The complainants appealed to the IG to direct FIB-IRT for a speedy investigation, conclusion and prosecution having profiled and tracked down some of those involved.

Police mum

According to Onyeabuchi’s testimony, on May 8, 2023, one of the victims called him that Heart was detained at the FIB-IRT for a similar offence but was later released but his international passport retained. 

When Daily Trust reached out to Phase 4 Police Division, Kubwa, Abuja, the officer who had been handling the case, Ambi Mathew, declined comment.

Also, When Daily Trust reached out to the Intelligence Response Team (IRT) of the Force Intelligence Department, an officer, Garba Bashir, said Daily Trust would require a letter from the Force Headquarters for him to comment on the case.