Gov Otti Revokes, Reclaims Assets of ENASCO alegedly Used by Ikpeazu, Aides to Steal Abia State Funds
Umuahia, April 26, 2025 — In a sweeping move aimed at restoring accountability and transparency in the use of public resources, the Abia State Government under the leadership of Governor Alex Otti has revoked the land title granted to the Enyimba Automated Shoe Company (ENASCO) and initiated a formal process to reclaim all government-contributed assets and resources linked to the enterprise. The decision, government sources say, was driven by revelations of financial mismanagement, shareholding irregularities, and deliberate exclusion of the State from ownership structures despite substantial contributions.
This development is the latest in a series of reformist actions taken by the Otti-led administration to sanitize public investment channels allegedly exploited by political appointees and loyalists of former Governor Okezie Ikpeazu.
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ENASCO was conceptualized and founded in 2020 during the tenure of Governor Ikpeazu as part of a broader initiative to revive Abia State’s leather industry and position the State as the shoemaking capital of West Africa. The company reportedly imported high-grade shoemaking machinery from Turkey and boasted a projected annual production capacity of two million pairs of footwear.
According to official documentation and a forensic review commissioned by the current administration, the Abia State Government committed NGN158,315,809.60 in land, equipment, and infrastructure to the enterprise. In addition, a cash injection of NGN41,850,000.00 was made, bringing the government’s total contribution to over 70 percent of the enterprise’s known operational capital.
These contributions were touted as part of a public-private partnership aimed at creating employment, stimulating local production, and boosting exports. ENASCO was projected to absorb over 5,000 direct and indirect workers in its first five years.
But while the dream was compelling, the realities that have since emerged paint a different picture.
Governor Alex Otti, a former bank chief executive with a reputation for fiscal discipline, assumed office in May 2023 amid promises to plug leakages in public finance and unravel the truth behind key state investments. One of the immediate steps taken was the commissioning of a regulatory, financial, and operational review of state-linked projects by a consortium of Big Four professional services firms.
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Despite contributing the lion’s share of the company’s capital and assets, the Abia State Government was not listed as a shareholder or beneficial owner at the Corporate Affairs Commission (CAC) as of November 2024. This glaring omission persisted even after multiple amendments to the company’s shareholding structure were made in July 2023, weeks after Otti took office.
The most recent CAC filings as of April 3, 2025, list the shareholders as follows:
- 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
Not a single share was attributed to the Abia State Government—despite its substantial contribution.
This discrepancy, according to a senior government source, amounted to “willful misappropriation of public resources.”
Beyond ownership irregularities, the audit revealed a consistent pattern of financial mismanagement. ENASCO’s revenue has reportedly plummeted since its launch, with retained losses ballooning to NGN115.7 million by October 2024.
Critically, the company had become overly reliant on shareholder deposits to stay afloat, with deposits for shares swelling to NGN88.9 million. These funds, meant for capital expansion, were found to have been used to fund operational expenses without proper documentation, amounting to NGN97,720,294.51.
Worse still, ENASCO lacked basic corporate governance structures. There were no board charters, no record of statutory audits, and no compliance with tax obligations. This complete absence of oversight mechanisms provided fertile ground for alleged looting, sources say.
“There is no governance framework, no credible audit trail, and no justification for the expenditures made. ENASCO was essentially a shell created to siphon state funds under the guise of industrialization,” a government insider told this reporter.
In an effort to resolve the matter amicably, Governor Otti’s administration convened a high-level stakeholders’ meeting on April 23, 2025. The meeting brought together government representatives and private shareholders in ENASCO.
The central aim of the gathering was to push for a restructuring of the company’s shareholding and the inclusion of Abia State Government representatives on the Board of Directors. But the meeting ended in deadlock.
According to an official communique, “existing shareholders resisted all attempts to correct the shareholding structure or allow ABSG representation in the governance of the company.”
This stance, the government stated, was “untenable and ridiculous.”
“It is unacceptable that despite the overwhelming financial and asset contributions made by the Abia State Government to the company, the state does not hold a single share in ENASCO,” the communique noted.
Following the collapse of negotiations, the Abia State Government swung into action. On April 25, 2025, the administration issued an executive order revoking ENASCO’s land title and initiating legal proceedings to reclaim all state-contributed assets.
The three-point action plan includes:
- Revocation of the land title granted to ENASCO.
- Reclamation of all contributed assets, including land, buildings, and imported equipment.
- Legal action to recover funds or assets allegedly misappropriated.
The government also pledged to continue its drive to revive moribund industries and support businesses that operate with transparency and integrity.
Reactions to the revocation have been swift and divided.
Civil society organizations, especially those advocating for public sector accountability, have praised Governor Otti. Speaking to this reporter, Barr. Chinonye Udeh, Executive Director of Abia Watch, said:
“This is the kind of courageous leadership we need in Nigeria. For far too long, state investments have been turned into private empires by political cronies. ENASCO was a scandal waiting to happen, and it’s commendable that Governor Otti is tackling it head-on.”
But not everyone is pleased. Close associates of former Governor Ikpeazu have described the move as “politically motivated.”
A senior member of the previous administration who declined to be named alleged that the decision was “a witch-hunt aimed at discrediting Ikpeazu’s legacy.”
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“ENASCO was a bold initiative. If there are governance issues, they should be corrected, not politicized,” the source added.
The ENASCO saga adds to the growing list of projects and financial dealings under the Ikpeazu administration that are now being reviewed or reversed. Earlier this year, the Otti administration launched inquiries into questionable road contracts, abandoned healthcare centers, and stalled education projects.
While Ikpeazu has remained largely silent on these developments, insiders say he is preparing a formal response to what is perceived in his camp as a campaign to “rewrite history.”
However, the facts emerging from audits and on-ground investigations have made it difficult for many to defend what increasingly appears to be a pattern of asset diversion and disregard for due process.
With the revocation order now in force, security operatives are expected to seal off ENASCO facilities pending a court determination of ownership claims. The State Attorney General has confirmed that suit papers are being prepared to initiate recovery proceedings against the listed shareholders.
Meanwhile, Governor Otti has hinted that the reclaimed assets will be rechanneled into a new industrial project under tighter public-private partnership frameworks.
“Our government is not against private enterprise. We are against fraud masquerading as entrepreneurship,” he said during a press briefing in Umuahia.
“Abia people deserve to see the value of their taxes. They deserve honest leadership and accountable stewardship.”
The decision to revoke ENASCO’s land title and reclaim state assets marks a bold chapter in Abia’s governance history. It signals a willingness to confront past excesses and reset the terms of engagement between government and private investors.
It is also a test case for other states battling the ghosts of opaque joint ventures and abandoned public-private projects.
Whether Governor Otti’s action will lead to convictions, systemic reforms, or simply become another political footnote remains to be seen. But for now, one thing is clear: the days of unchecked impunity in Abia’s investment ecosystem are numbered.
