Enugu Govt Slams Sahara Reporters, Insists Smart City, Coal City Estate Not Private Firms, Rather SPVs
The Enugu State Government has dismissed allegations of land grabbing levelled against some of its officials, insisting that the New Enugu Smart City and Coal City Eastern Alliance Estate are government-backed Special Purpose Vehicles (SPVs) established to protect public interests, and not privately-owned companies.
The government’s reaction followed a report published by Sahara Reporters on July 14, 2026, which alleged that top government officials were beneficial shareholders in Coal City Eastern Alliance Limited and had acquired community and private lands through the company.
Those named in the report include the Secretary to the State Government, Prof. Chidiebere Onyia; the former Commissioner for Housing and current APC Chairman in the state, Dr. Martins Chukwunweike; former General Manager of the Enugu State Housing Development Corporation, Mr. Gerald Asogwa; and the Commissioner for Justice and Attorney General, Mr. Osinachi Nnajieze, who was formerly the Governor’s Legal Adviser.
However, in a statement made available to journalists in Enugu on Thursday, the Commissioner for Information and Communication, Dr. Malachy Agbo, described the allegations as false, misleading and a gross misunderstanding of the legal framework governing SPVs.
According to him, the officials mentioned in the publication merely serve as nominal shareholders and directors, representing the state’s interests as trustees in accordance with established legal and corporate governance principles.
He explained that the use of SPVs is an internationally recognised practice adopted by governments and private organisations to safeguard public assets and facilitate the execution of strategic projects.
“The report deliberately ignored the facts and sought to portray government officials serving on the boards of these state-owned entities as land grabbers and beneficiaries of the companies’ assets,” Agbo said.
He stressed that none of the officials received financial benefits from the companies, adding that they were not paid sitting allowances throughout their tenure on the boards.
The commissioner further noted that successive administrations had always appointed public officials to oversee similar state-owned companies, stressing that board memberships change with each administration without any transfer of ownership.
He described as “false and illogical” the claim that the Secretary to the State Government owned 30 per cent of the company, arguing that if such positions conferred personal ownership, previous office holders would have permanently retained the assets, leaving nothing for their successors.
“For emphasis, the current board members of these state-owned SPVs are nominal shareholders and directors whose sole responsibility is to represent the interests of Enugu State,” he stated.
Agbo also faulted the report for failing to recognise that several other state-owned companies, some established decades before the current administration, operate under the same arrangement, with government officials serving as trustees on their boards.
He added that many of the same officials serve on the boards of multiple state-owned entities, further demonstrating that their appointments are purely representative rather than proprietary.
The commissioner maintained that if the officials were indeed beneficial owners of the companies, as alleged, the state would have long lost ownership of its investments.
Responding to the report’s claim of investigative journalism, Agbo accused the publication of relying solely on information obtained from the Corporate Affairs Commission (CAC) portal without conducting proper verification.
He explained that a thorough investigation would have revealed that all the assets and liabilities of Coal City Eastern Alliance Estate Limited were transferred to the Enugu State Housing Development Corporation in 2024, which has since exercised full control over the company’s projects.
He also clarified that the New Enugu City Management Agency is a government agency, noting that the presence of public officials on its board is purely administrative and intended to provide governmental oversight rather than corporate ownership.
Agbo expressed disappointment that the publication failed to appreciate what he described as basic principles governing SPVs and corporate trusteeship.
He added that a diligent investigation would have prevented what he described as repeated corrections to the story following the discovery of what the government called significant factual inaccuracies.
The state government therefore maintained that the allegations of land grabbing and private ownership of government assets were unfounded, insisting that the officials named in the report acted solely in trust for the people of Enugu State in line with established legal and corporate governance procedures.
EDITOR
Sam Udekwe is a journalist working in the News and Current Affairs department, Enugu State Broadcasting Service (ESBS) Enugu. He is well trained in all genres of journalistic venture.
Mr Sam read Mass Communication, graduating all with Distinction in National Diploma, Higher National Diploma and Postgraduate Diploma at IMT, Enugu and Madonna University, Okija, Anambra state, as well as M.Sc Mass Communication at National Open University of Nigeria.
He is the immediate past NUJ Chairman, Enugu state.
samowailo@gmail.com
