26th April 2025, NewsOrient, News, Business And Economy, Governance And Development, Law And Society
Posted By Samuel Egburonu, Editor

Abia State Government has explained why it revoked the land title previously granted to the Enyimba Automated Shoe Company (ENASCO) and why the government is set to reclaim all state-owned assets and resources committed to the company.

The State government gave the explanation in a press release it issued on Friday through the Chief Press Secretary to the Governor, Ukoha Njoku Ukoha.

In the statement, Ukoha said the decision “followed a comprehensive audit and review conducted by one of the Big Four global consulting firms.”

According to him, “the review exposed widespread financial irregularities, governance failures, and a deliberate attempt to exclude the state from ownership despite its significant contributions.”

ENASCO, established in 2020 during the administration of former Governor Okezie Ikpeazu, was designed to boost Abia’s leather and footwear industry with a production target of two million shoes annually.

The Abia State Government contributed more than 70% of the total investment in the company—over N158 million in assets and N41.8 million in cash.

“However, the audit revealed that the state was not listed as a shareholder in records at the Corporate Affairs Commission (CAC), raising concerns about misappropriation. Current CAC documents list private individuals—Nwakile John Chidi, Udeagbala John Chinyelu, Nwaogu Chinenye, Sam Hart, and Macauley Atasie—as the only shareholders.

ENASCO was also found to have recorded declining revenues, retained losses of N115.7 million as of October 2024, and poor financial practices including unverified expenses totaling N97.7 million.

A stakeholders’ meeting held on April 23, 2025, aimed at resolving the ownership concerns, ended in a stalemate, with existing shareholders reportedly rejecting the government’s request to restructure the shareholding and appoint representatives to the board.”

Condemning the development as “untenable and ridiculous,” the government announced the following actions:
(1) Revocation of ENASCO’s land title; (2) Repossession of all state-contributed assets;
(3) Legal action to recover misappropriated funds.”

The statement also spoke of Governor Alex Otti’s commitment to transparency, accountability, and the protection of public interest, while assuring that genuine investors who operate within the bounds of integrity and sound corporate governance will continue to be welcomed in the state.

~ Published By NewsOrient Network

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