Business

Abia State revokes ENASCO land title and reclaims assets over governance issues

Friday, 25 April 2025 8:53AM UTC

Following a comprehensive review revealing governance and ownership discrepancies, the Abia State government has revoked the land title of Enyimba Automated Shoe Company and is recovering all public assets invested, signalling a firm stance on industrial asset management.

The Abia State government has taken the decisive step to revoke the land title of Enyimba Automated Shoe Company (ENASCO) and reclaimed the associated property, signalling a major development in the state's management of its industrial assets. This action was announced in a statement issued on Friday morning by Ukoha Njoku Ukoha, Chief Press Secretary to Governor Alex Otti.

According to the statement, the government's decision followed a thorough regulatory, financial, and operational review of ENASCO conducted by reputed professional service firms. The review uncovered significant discrepancies and corporate governance issues within the company, prompting the government to intervene.

ENASCO was originally established in 2020 during the administration of former Governor Okezie Ikpeazu, with the ambition of advancing Abia’s leather industry by producing high-quality footwear for both local and international markets. The company was equipped with machinery imported from Turkey and had an anticipated annual production capacity of two million pairs of shoes.

The Abia State government invested substantially in ENASCO, providing assets such as land, buildings, and equipment, with the total contribution valued at approximately 158,315,809.60 Nigerian Naira. However, the statement highlighted a critical issue regarding the company's ownership structure. Despite these substantial contributions, the state was not recorded as a shareholder or beneficial owner in the shareholding records at the Corporate Affairs Commission (CAC) as of November 2024.

Further complicating matters, changes to the shareholding structure were made in July 2023, soon after Governor Alex Otti assumed office, yet the Abia State government remained absent from the publicly available shareholding records at CAC.

In addition to reclaiming ENASCO’s property, the state government declared it would recover all resources and assets it had contributed to the company. This move underscores the government's commitment to addressing governance lapses and securing public assets invested in industrial ventures.

The Daily Post Nigeria reports that this development marks a significant chapter in Abia State’s efforts to regulate and optimise its industrial enterprises under the current administration.

Source: Noah Wire Services

More on this

https://dailypost.ng/2025/04/25/abia-govt-revokes-land-documents-reclaims-shoe-companys-property/ - This article corroborates the Abia State government's decision to revoke the land title of Enyimba Automated Shoe Company (ENASCO) and reclaim its property. It highlights the state's efforts in managing industrial assets and addressing governance issues.
https://dailypost.ng/2025/03/27/land-documents-without-recertification-to-be-revoked-in-abia-as-enforcement-begins/ - This article provides context on the broader efforts by the Abia State government to revamp land ownership and management, emphasizing the importance of recertification and compliance with regulations for land titles.
https://www.youtube.com/watch?v=WATjPOwulDg - This video supports the information about the enforcement timeline concerning property recertification in Abia State, highlighting the government's stance on non-compliance.
https://www.instagram.com/kepukeputv/p/DH24YSMgJtB/ - This Instagram post documents the enforcement action against land documents lacking recertification in Abia State, aligning with the broader regulatory actions taken by the state.
https://www.corporateaffairs.gov.ng/ - This URL refers to the official website of the Corporate Affairs Commission (CAC), which would contain records of shareholding structures. While it doesn't directly address ENASCO, it provides the framework for checking company ownerships in Nigeria.
https://www.noahwire.com - This source is mentioned in the original text as the provider of the news about ENASCO, potentially offering more detailed insights into the company's activities and the state's regulatory efforts.
https://news.google.com/rss/articles/CBMingFBVV95cUxNeHIwRFRkanV4X1BUcTdYWHdlOE9UNi1palRoRW5zM2RncVJvY1ozMGI1MHczY3BncVJ4bGdhNkdrT0xqUDRLak5IZnBFVVR4WTdES3NNSVppSWNnNWxOX0VXTGJmMTE2UENZWGZQVHBpV2hsYXQtWEhhbWwyeExTckhlUlpoY1hUYUtIb1FPUGdFWlRueC1OcHZWYXpqdw?oc=5&hl=en-US&gl=US&ceid=US:en - Please view link - unable to able to access data

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative involves recent events and updates, specifically mentioning actions taken by the current administration under Governor Alex Otti. However, no specific details are provided about when the statement was issued beyond it being on a Friday morning, which could indicate a lack of precise information about the timing.

Quotes check

Score: 0

Notes: No direct quotes were found in the provided text to verify.

Source reliability

Score: 6

Notes: The narrative originates from a news report, but the original publication source is not explicitly stated beyond mentioning 'The Daily Post Nigeria'. This platform is known, but not as prominent as major international news outlets like Reuters or the BBC.

Plausability check

Score: 8

Notes: The claims seem plausible given the context of government actions in managing industrial assets and addressing corporate governance issues. However, without specific details about the review process or direct evidence supporting the claims, the assessment relies on the general plausibility of similar government actions.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative appears to be relatively fresh and involves plausible actions by the government. However, the lack of specific timing details and the absence of direct quotes limit the confidence in the overall accuracy. The source reliability is moderate due to the origin from a known but not top-tier news platform.

Abia State
ENASCO
industrial assets
corporate governance
government intervention