The Abia State Government has revoked ENASCO’s land title and moved to reclaim all public assets amid shocking revelations of allege shareholding fraud and financial misconduct. Full story inside.
Shocking revelations uncover allege shareholding fraud, financial mismanagement, and corporate cover-up in shoe factory project initiated under Ikpeazu.
In a dramatic move that has sent shockwaves across Abia State and Nigeria’s industrial investment circles, the Abia State Government (ABSG) has revoked the land title of the embattled Enyimba Automated Shoe Company (ENASCO) and commenced the recovery of all state assets and resources allegedly misappropriated in the project.
This decision, announced through a press release signed by Chief Press Secretary Ukoha Njoku Ukoha, followed a sweeping regulatory, financial, and operational audit conducted by globally renowned Big Four auditing firms, which uncovered alarming levels of governance failure, asset diversion, and fraudulent restructuring of ownership.
ENASCO: A Dream Gone Wrong
ENASCO was launched in 2020 by the administration of former Governor Okezie Ikpeazu with grand promises of turning Abia into the footwear capital of Africa. The project saw the importation of high-grade Turkish equipment with an annual production capacity of 2 million pairs of shoes. However, the dream appears to have been turned into a massive scandal.
The Abia State Government was the primary financier, contributing over ₦158.3 million in physical assets (land, buildings, machinery) and ₦41.85 million in cash—over 70% of total company contributions. Despite this heavy investment, the government holds zero shares in the company as recorded at the Corporate Affairs Commission (CAC).
How the Fraud Allegedly Unfolded
An audit revealed that by April 2025, shareholders listed at 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 Government, despite its dominant stake in the company’s capital base. The shareholding was allegedly manipulated shortly after Governor Alex Otti assumed office in July 2023, with no transparency or trace of state representation.
Massive Financial Rot and Governance Failure
The review also exposed:
Retained losses of ₦115.7 million as of October 2024
Over ₦88.9 million funded through “deposits for shares”
₦97.7 million used without proper documentation or accounting
No statutory audits, no tax compliance, and no board governance framework
ENASCO allegedly operated like a rogue entity, draining public investment while blocking state participation and oversight.
Failed Dialogue and Government’s Swift Response
On April 23, 2025, the Otti-led administration convened a stakeholders’ meeting to resolve the anomalies, but the meeting ended in deadlock as existing shareholders reportedly resisted any restructuring or inclusion of Abia State in the board or shareholding.
The government described their posture as “untenable and ridiculous” and vowed to protect Abia taxpayers’ investments.
GOVERNMENT ACTIONS TAKEN:
Revoked ENASCO’s land title immediately.
Reclaimed all physical and financial assets contributed by the state.
Initiated legal proceedings to recover all alleged misappropriated funds and assets.
ABSG reiterated its commitment to transparency and corporate accountability, stressing that only genuine investors who respect due process and governance frameworks will be allowed to operate in the state.
This saga raises serious questions about alleged institutional looting and boardroom coup tactics that stripped Abia of rightful ownership in one of its most promising industrial ventures.
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