Tingo Group, a Nigerian agri-fintech company embroiled in financial issues, has stopped paying its employees and sent most of them home temporarily, after months of delayed salaries and broken promises from the company’s CEO.
The issue, impacting at least 50 Tingo employees, came into effect in March 2024 after a period of three months where employees weren’t paid their salaries.
In January, CEO Dozy Mmobuosi assured employees in a company-wide call that salaries would be settled within four weeks and appealed for their continued service.
These assurances came despite the Securities and Exchange Commission (SEC) filing charges against Tingo in December 2023 for allegedly fabricating its financial statements.
The SEC investigation revealed a discrepancy between Tingo’s reported financials and reality. While the company claimed to have cash reserves exceeding $461 million, its bank accounts held less than $50 million.
Adding to the confusion, some employees received pay raises just weeks after the SEC charges were filed. These raises ranged from 200% to 400%, according to a company executive.
In March, noting “present realities and uncertainties ahead,” Tingo informed staff via email that they would be sent home temporarily until the company could resume salary payments.
A high-ranking executive, speaking on condition of anonymity, confirmed the furloughs as a necessary step due to the company’s financial struggles. He elaborated that frozen assets and unpaid debts from vendors further exacerbated the situation.
Tingo Group has not responded to requests for comment regarding the unpaid salaries but instead invited media to a product launch event for its subsidiary, Tingo Foods. This upcoming launch of new beverages has left former employees questioning the company’s priorities.
This incident is the second round of staff reductions for Tingo in 2024. In February, approximately 40 contract workers were abruptly let go without receiving payment for services rendered.
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