The Abia State Government has officially revoked the land title and taken back ownership of the Enyimba Automated Shoe Company, following a series of troubling findings.
In a statement released Friday morning by Ukoha Njoku Ukoha, Chief Press Secretary to Governor Alex Otti, the government revealed that it would also move to recover all assets and resources it contributed to the company.
The statement noted that the decision came after a thorough regulatory, financial, and operational review by top-tier professional service firms, which uncovered alarming discrepancies and issues tied to corporate governance within ENASCO.
Established in 2020 during the tenure of former Governor Okezie Ikpeazu, ENASCO was set up to boost Abia’s leather industry.
The company, which imported equipment from Turkey, had aimed to produce two million pairs of shoes annually for both local and international markets.
“Abia contributed significantly to the company’s assets, including land, buildings, and equipment, with a total asset contribution estimated at one hundred and fifty eight million, three hundred and fifteen thousand, eight hundred and nine Naira, sixty kobo,” the statement said.
It added that as of November 2024, records from the Corporate Affairs Commission did not list the Abia State Government as either a shareholder or a beneficial owner, despite its major investments.
“Subsequent changes were made to the shareholding structure in July 2023, shortly after Governor Alex Otti took office.
“Yet, ABSG was still not mentioned as a shareholder in any publicly available records at CAC,” the government further disclosed.
