Abia Government Revokes ENASCO Land Title, Moves to Reclaim Assets from Shareholders Over Alleged Mismanagement

Abia State Government has revoked the land title granted to Enyimba Automated Shoe Company (ENASCO) and is taking steps to reclaim all public assets and funds contributed to the company, following findings of financial mismanagement, shareholding discrepancies, and poor corporate governance.

According to a statement issued by the Chief Press Secretary to the Governor, Ukoha Njoku Ukoha, the decision followed a comprehensive regulatory, financial, and operational review conducted by one of the Big Four professional services firms.

The report revealed that despite the Abia State Government’s substantial investment over ₦158 million in land, buildings, and equipment, and ₦41.8 million in cash ENASCO’s records at the Corporate Affairs Commission (CAC) did not reflect the state as a shareholder.

As of April 3, 2025, the shareholders listed at the CAC include Nwakile John Chidi with 445,900 shares, Udeagbala John Chinyelu with 219,600 shares, Nwaogu Chinenye with 111,500 shares, Sam Hart with 111,500 shares, and Macauley Atasie with 111,500 shares.

The government described this structure as a deliberate attempt to exclude the state from ownership, despite being the principal financier of the company.

The review also exposed a decline in ENASCO’s financial performance, with retained losses amounting to ₦115.7 million and deposits for shares rising to ₦88.9 million.

Furthermore, there was evidence of ₦97.7 million spent without proper documentation, absence of a corporate governance framework, lack of statutory audits, and non-compliance with tax obligations.

Efforts to resolve these issues at a stakeholders’ meeting convened by the government on April 23, 2025, proved unsuccessful, as the shareholders reportedly refused to restructure the ownership or allow the appointment of government-nominated directors.

In response, the Abia State Government announced the immediate revocation of the land title, the recovery of all state-contributed assets, and the commencement of legal proceedings to recover any misappropriated funds.