Chowdeck has introduced a new Vendor Badges system and strengthened its verification process following a major onboarding failure that exposed weaknesses in its restaurant approval system.

The changes come after a Techpoint investigation revealed that a fake restaurant listing was able to be created and even process an order using falsified details. The incident has intensified scrutiny on how rapidly expanding food delivery platforms in Nigeria vet merchants.

According to Chowdeck CEO Femi Aluko, the reforms are part of a broader effort to rebuild user trust and improve transparency as the company scales operations. The investigation, conducted in May 2026, showed that a reporter successfully registered a vendor account using a fabricated address, fake tax details, and images taken from an existing Lagos restaurant.

Despite initial rejection due to mismatched Corporate Affairs Commission (CAC) information, the account was still allowed to proceed under restricted conditions that later enabled it to process an order.

Chowdeck has since clarified that while its standard onboarding process targets fully registered businesses, it occasionally grants limited access to small vendors still formalizing documentation. The findings, however, highlighted how such exceptions could be exploited for impersonation and fraud.

New Vendor Badge System Introduced to Improve Transparency

In response, Chowdeck has rolled out a three-tier Vendor Badges system to give customers clearer visibility into how each vendor operates. “Verified” vendors represent fully approved businesses that have passed all compliance checks and are fully integrated into the platform.

“Awaiting Verification” applies to businesses still undergoing onboarding and operating under strict limitations until approval is completed. The third category, “Shopper,” refers to non-direct vendors where Chowdeck assigns a trained shopper to purchase items on behalf of customers before delivery.

The company has also significantly expanded its verification requirements for direct partners. Vendors are now required to submit CAC registration documents, Tax Identification Numbers (TIN), ownership details, operational addresses, and verified banking information.

These details are cross-checked using third-party verification systems such as Mono and SmileID to confirm authenticity. In addition, Chowdeck has strengthened ongoing monitoring mechanisms to detect impersonation, fraud, and suspicious activity, with penalties ranging from account suspension to legal referral in severe cases.

CEO Femi Aluko stated that the updated system reflects lessons learned from earlier onboarding gaps, noting that while previous policies supported small businesses, they also created exploitable loopholes.

The introduction of Vendor Badges is intended to improve accountability and help users better understand the status of each business on the platform. The issue also reflects the challenges in Nigeria’s food delivery sector, where regulatory oversight remains fragmented between agencies such as the Federal Competition and Consumer Protection Commission (FCCPC) and the National Agency for Food and Drug Administration and Control (NAFDAC).

As demand for delivery services grows, Chowdeck’s overhaul signals a wider industry shift toward stricter verification and transparency standards.