After Adani Group, Hindenburg Exposes Financial Discrepancies in Nigeria’s Tingo Group
Written by Sanjay Kumar
Following a scathing report from Hindenburg Research, shares of New Jersey-Tingo Group plummeted by more than 50 percent. Hindenburg Research labeled the company an “obvious scam” and exposed alleged falsifications in its financial records. The report shed light on significant inconsistencies and red flags within Tingo Group’s operations, including concerns about the CEO’s background, unverified business claims, and financial discrepancies.
Tingo Group, which maintains diversified business interests in mobile phones, food processing, and an online food marketplace primarily in Nigeria, operates across Africa, Southeast Asia, and the Middle East. Hindenburg Research, a US-based short seller, made grave accusations against the company and its founder, Dozy Mmobuosi.
Dozy Mmobuosi has often been portrayed by the media as a billionaire. Earlier this year, he attracted attention when he attempted to acquire the now-Premier League soccer team Sheffield United. However, he has now faced allegations of fabricating his achievements and personal history.
Hindenburg Research specifically pointed out that Mmobuosi had falsely claimed to have developed Nigeria’s first mobile payment app. The report stated, “We contacted the app’s actual creator, who called Dozy’s claims ‘a pure lie.'” This revelation further damaged Tingo Group’s credibility.
According to Hindenburg Research’s findings, Tingo Group declared that its mobile handset leasing, call, and data business generated $128 million in revenue last year. The company claimed that these services were provided through an agreement with Airtel in Nigeria. However, Hindenburg Research pointed out that the license type Tingo Group claimed to possess did not exist until June 2023.
As a result of these revelations, Tingo Group’s shares experienced a sharp decline of more than 55%, reaching $1.13 in early trading on Tuesday (June 6).
Hindenburg Research’s report raised serious doubts about Tingo Group’s financials and business operations. The company’s food unit, Tingo Foods, boasted of generating substantial revenues, despite the absence of any food processing facility of its own.
The report highlighted that a proposed food processing unit, which Tingo Group had claimed to have, turned out to be a stock image of an oil refinery. Additionally, the site showed no signs of progress, aside from a plaque and billboard.
“We think Tingo is a worthless and brazen fraud that should serve as a humiliating embarrassment for all involved,” stated Hindenburg Research in its report.
This report has the potential to trigger regulatory scrutiny and legal challenges, ultimately impacting Tingo Group’s future operations and stock performance significantly.
Tingo Group marks the fourth target of US-based short-seller Hindenburg Research this year, following their previous scrutiny of Adani Group, Jack Dorsey’s Block Inc, and Carl Icahn’s flagship firm, Icahn Enterprises.
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