Tingo Group says Hindenburg report designed for gain, as Nigerian farmers reveal partnership with fintech

Tingo Group, a Nigerian fintech company, and the All Farmers Association of Nigeria (AFAN) has put a lie to allegations made against the firm by Hindenburg Research, a U.S. investment organisation.

Ripples Nigeria had reported earlier that Hindenburg Research alleged that Tingo Group cooked its books, but, Tingo said its accounting records are accurate and correct.

Tingo further stated that the company’s financial results are accurately reported within its financial statements and its SEC filings, adding that the firm remains in compliance with the laws of the territories in which it operates and maintains the highest standards of corporate governance.

In a statement addressing the allegations, Tingo described Hindenburg Research’s claims as misinforming, stating that it contains numerous errors of fact which Hindenburg intends to profit from as a ‘short investment’ firm.

A short investment firm, like Hindenburg, profits from the depreciation of a stock or asset. A short investor bets on a company’s value dropping in the future, unlike a ‘long investor’ who bets on a firm’s stock rising in the future.

“As disclosed by Hindenburg Research, the report represents their own opinion, and is designed to benefit a short position taken by them and their associates from which they stand to realize sizeable gains,” Tingo said.

In the statement, Tingo said the report by Hindenburg has misleading and libellous content and “appears to be a deliberate attempt to undermine the positive work that Tingo Group is undertaking across various worldwide markets.

“The Company can confirm that no attempt was made by Hindenberg Research to verify the allegations or otherwise make genuine inquiries concerning the information provided in the report prior to its release,” the firm noted.

Meanwhile, the All Farmers Association of Nigeria (AFAN) also addressed part of the Hindenburg report which claimed that the millions of farmers Tingo claimed to be working with are non-existent.

National president of the group, Dr Farouk Rabiu Mudi in the statement, said AFAN “as the umbrella organization for all farmers, agricultural cooperative and associations in Nigeria, has introduced approximately 11 Million new members to become end-users of Tingo mobile Smartphone and Fintech applications including, in particular, Tingo mobiles Nwassa platform”.

READ ALSO: Nigerian farmers now owing CBN over N1trn, as many refuse to repay

The group also stated that members of AFAN have been distributing their produce to Tingo Foods, a subsidiary of Tingo Group, for processing and exportation.

The letter further reads, “The purpose of this letter is to provide you a progress update concerning the lease and service agreement entered into by Afan and Tingo mobile limited on 14 December 2022.

“We are pleased to report that Afan,as the umbrella organization for all farmers, agricultural cooperative and associations in Nigeria, has introduced approximately 11 Million new members to become end-users of Tingo mobiles Smartphone and Fintech applications including, in particular, Tingo mobiles Nwassa platform.

“In addition to the use of Tingo mobile devices and Fintech apps, our members are also making their produce available for processing with Tingo foods plc, an affiliate of Tingo Mobile, to facilitate Domestic orders and or for Export.

“We look forward to continued growth and utilization by our membership base of the products and Services offered by Tingo and her group of companies,” the statement from AFAN reads.

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