The Abia State Authorities has revoked ENASCO’s land title and moved to reclaim all public property amid surprising revelations of allege shareholding fraud and {financial} misconduct. Full story inside.
Stunning revelations uncover allege shareholding fraud, {financial} mismanagement, and company cover-up in shoe manufacturing unit undertaking initiated beneath Ikpeazu.
In a dramatic transfer that has despatched shockwaves throughout Abia State and Nigeria’s industrial funding circles, the Abia State Authorities (ABSG) has revoked the land title of the embattled Enyimba Automated Shoe Firm (ENASCO) and commenced the restoration of all state property and sources allegedly misappropriated within the undertaking.
This choice, introduced by way of a press launch signed by Chief Press Secretary Ukoha Njoku Ukoha, adopted a sweeping regulatory, {financial}, and operational audit carried out by globally famend Huge 4 auditing corporations, which uncovered alarming ranges of governance failure, asset diversion, and fraudulent restructuring of possession.
ENASCO: A Dream Gone Unsuitable
ENASCO was launched in 2020 by the administration of former Governor Okezie Ikpeazu with grand guarantees of turning Abia into the footwear capital of Africa. The undertaking noticed the importation of high-grade Turkish tools with an annual manufacturing capability of two million pairs of footwear. Nevertheless, the dream seems to have been was an enormous scandal.
The Abia State Authorities was the first financier, contributing over ₦158.3 million in bodily property (land, buildings, equipment) and ₦41.85 million in money—over 70% of whole firm contributions. Regardless of this heavy funding, the federal government holds zero shares within the firm as recorded on the Company Affairs Fee (CAC).
How the Fraud Allegedly Unfolded
An audit revealed that by April 2025, shareholders listed on the CAC included:
Nwakile John Chidi – 445,900 shares
Udeagbala John Chinyelu – 219,600 shares
Nwaogu Chinenye – 111,500 shares
Sam Hart – 111,500 shares
Macauley Atasie – 111,500 shares
Shockingly, not a single share was credited to the Abia State Authorities, regardless of its dominant stake within the firm’s capital base. The shareholding was allegedly manipulated shortly after Governor Alex Otti assumed workplace in July 2023, with no transparency or hint of state illustration.
Huge {Financial} Rot and Governance Failure
The evaluation additionally uncovered:
Retained losses of ₦115.7 million as of October 2024
Over ₦88.9 million funded by way of “deposits for shares”
₦97.7 million used with out correct documentation or accounting
No statutory audits, no tax compliance, and no board governance framework
ENASCO allegedly operated like a rogue entity, draining public funding whereas blocking state participation and oversight.
Failed Dialogue and Authorities’s Swift Response
On April 23, 2025, the Otti-led administration convened a stakeholders’ assembly to resolve the anomalies, however the assembly led to impasse as current shareholders reportedly resisted any restructuring or inclusion of Abia State within the board or shareholding.
The federal government described their posture as “untenable and ridiculous” and vowed to guard Abia taxpayers’ investments.
GOVERNMENT ACTIONS TAKEN:
Revoked ENASCO’s land title instantly.
Reclaimed all bodily and {financial} property contributed by the state.
Initiated authorized proceedings to recuperate all alleged misappropriated funds and property.
ABSG reiterated its dedication to transparency and company accountability, stressing that solely real traders who respect due course of and governance frameworks can be allowed to function within the state.
This saga raises critical questions on alleged institutional looting and boardroom coup ways that stripped Abia of rightful possession in one in all its most promising industrial ventures.
