Nigerians Question Legitimacy of $100m Enugu Water Project Deal with ‘Austrian Firm’, Bust Gov. Mbah

The Enugu State Government, under Governor Peter Mbah, announced a $100 million partnership with Wande Nexus, which was described as an Austrian firm. The agreement is reportedly for the Sustainable Last Mile Connectivity and Advanced Metering Infrastructure (AMI) Project. The deal was signed on Monday at the Government House, Enugu, in the presence of Austrian Ambassador to Nigeria, Thomas Schlesinger.

Governor Mbah said the project will modernise Enugu’s water infrastructure, increase daily water production to 200 million litres and expand pipeline connections to households. He claimed the deal resulted from months of negotiations, culminating in an agreement that enables immediate fund disbursement for water system improvements.

The government pointed out its key project partners, saying that Wande Nexus will oversee project management and ensure global standards. OSTAP International Water Consulting will provide technical oversight, while Nwankwo Scott & Associates (NSA) will act as the EPC contractor.

However, the announcement has been met with criticism. Observers have contradicted the governor’s claims that Wande Nexus is a legitimate Austrian firm bringing in Foreign Direct Investment (FDI). Mikael Bernard, a popular commentator on social issues, alleges that Wande Nexus is a Special Purpose Vehicle (SPV)  created for questionable purposes. An SPV is a separate legal entity created for a specific project, often to isolate financial risk from the parent company. In this case, however, no parent company is known.

Bernard noted that Wande Nexus was established only months ago and lacks proper registration in Austria. He questioned how an unregistered entity could fund a $100 million project.

A check by West Africa Weekly shows that while the firm claims to have a liaison office in Austria, there is barely any data about its status and operations. The firm’s only website was created 5 months ago and contains only generic information.

Further scrutiny has been directed at NSA, an architectural firm that observers argue lacks water project experience. Bernard also pointed out that the NSA’s office in Enugu is shared with other businesses and questioned its capacity to undertake such a large project. He further revealed that OSTAP’s last financial filings showed assets of just €34,000. He argued that neither of the three partners could fund or execute this deal.

Other observers also raised similar concerns about the project’s financing. Responding to the conversation, the Governor’s Senior Special Assistant on Media, Dan Nwome, dismissed the claims.He insisted the deal involves a foreign direct investment (FDI) from Austria, channelled through the Central Bank of Nigeria.

I looked up all the members of the firm, none of them look like they’ve seen $100k. Even the place they claim as office is also used by several other companies. Website was registered at the same period as the Wande Nexus SPV.

The only European company you put there is Ostap, and they don’t finance projects. You even wrote that they’d be providing only oversight, and not funds. So who are the people financing it? Is it the company on Nza Street or Peter Mbah or is this another ploy to loot the treasury? Bernard asked Nwome. 

Another social media user, Chris Ani, cited Wande Nexus’s sparse online presence, including a newly created YouTube channel with minimal content, as evidence of its lack of credibility. The inconsistencies in the project’s presentation raise serious concerns. West Africa Weekly noted that despite several rash comments, the Media assistant failed to signpost concerned citizens to an existing parent company in Austria.

Residents are now questioning the agreement’s legitimacy and demanding clarity on the actual source of the $100 million investment. Governor Mbah has yet to respond directly to the allegations.

Read More:

EFCC Withholds Name of Owner Behind Forfeited Abuja Estate with 753 Apartments

Tax Reform: Consider National Impact and Regional Sustainability – Obi

Senate Suspends Action on Tinubu’s Tax Reform Bill Following Public Backlash

About The Author

Confidence Ubani

author

See author's posts