Amidst Allegations of Sharp Practices, Nigerian Farmers Union Claim over 10m of its Members Use Tingo

As Tingo Mobile, a leading fintech solutions provider in Nigeria, faces allegations of sharp practices by Hindenburg Research, the All Farmers Association of Nigeria (AFAN) has come forward to assert that over ten million of its members actively utilize the Tingo Mobile smartphone application. This application, it says, enables farmers to conduct their business transactions seamlessly from the comfort of their homes, revolutionizing the way they operate.

Dr. Farouk Rabiu Mudi, the National President of AFAN
Dr. Farouk Rabiu Mudi, the National President of AFAN

In a statement released on June 7, Dr. Farouk Rabiu Mudi, the National President of AFAN, expressed his satisfaction with the progress made in the partnership between AFAN and Tingo Mobile. The collaboration between Tingo Group and AFAN involved deals on the supply and storage of agricultural produce, particularly rice and wheat, as Tingo Mobile aimed to expand its export business.

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Dr. Mudi’s statement highlighted the significant adoption of Tingo Mobile’s smartphone and fintech applications, including the Nwassa platform, among AFAN members. The statement read, “As of today, AFAN reports that an estimated 11 million of its members have adopted Tingo Mobile’s smartphone and fintech applications, including the Nwassa platform, as part of their daily operations.”

This widespread adoption is seen as a positive step towards achieving AFAN’s objective of granting its members access to advanced mobile technology and financial services. Dr. Mudi emphasized the partnership’s potential to enable AFAN members to grow by embracing digital technology, particularly following the implementation of the cashless policy announced by the Central Bank of Nigeria in 2007.

Furthermore, Tingo Mobile has recently launched a state-of-the-art food processing facility in Delta state, with the aim of serving the Nigerian and West African market. This development further strengthens the collaboration between AFAN and Tingo Group, as some AFAN members have already started providing their produce for processing to Tingo Foods Plc, an affiliate of Tingo Mobile.

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Dr. Mudi expressed his optimism for continued growth and improved utilization of Tingo’s products and services, stating, “We are encouraged by the progress we have seen through our partnership with Tingo Mobile. The use of digital technology among our members is growing, and some of our farmers have started to engage with Tingo Foods Plc. We remain hopeful for more growth and improved utilization of the products and services offered by Tingo and its group of companies.”

While Tingo Mobile faces allegations from Hindenburg Research, it has taken steps to address the situation. The company has engaged White & Case LLP, a leading international law firm, to conduct an independent review concerning the allegations outlined in Hindenburg’s report. This review, which will be reported to Tingo Mobile’s independent directors, aims to provide clarity and ensure transparency, the company says. 

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Tingo Mobile has firmly denied the allegations and misinformation contained in the Hindenburg report, highlighting Hindenburg’s disclosed economic incentive as a short seller to negatively influence the company’s share price. In the interest of shareholders and to protect its integrity, Tingo Mobile has chosen to refrain from commenting further on Hindenburg’s allegations until the independent review by White & Case LLP has been completed.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard