‘Austrian Investment’: The Truth About Enugu Governor’s $100M Water Project Deal

On Monday, December 2, 2024, Governor Peter Mbah of Enugu State announced a $100 million (₦168.7 billion) foreign direct investment in water infrastructure. The project is expected to benefit over 1.5 million residents of Enugu City. It reportedly involves partnerships with Wande Nexus, Ostap International Water Consulting—an Austrian firm—and Nwankwo Scott & Associates (NSA).

The governor and his Senior Special Assistant on Media, Dan Nwomeh, claimed that Wande Nexus, “an Austrian firm”, would oversee the state’s proposed $100 million water project titled “Sustainable Last Mile Connectivity and Advanced Metering Infrastructure (AMI)”.

Wande Nexus: An  Austrian Firm or Smoke and Mirrors?

The Enugu State Government said Wande Nexus would lead the AMI project’s design, financing, construction, and operation, with support from its partners. However, it is important to note that Wande Nexus is merely a Special Purpose Vehicle (SPV) created on May 29, 2024. The entity is registered with Nigeria’s Corporate Affairs Commission (CAC) under RC Number 7527303. Its headquarters are at Suite 322, Ambeez Plaza, Zone 5, Wuse, Abuja, Nigeria. A brochure available from the firm’s website states there is a branch office at 70 Nza Street, Independence Layout, Enugu, Enugu State, Nigeria. Notably, the project’s Nigerian partner, Nwankwo Scott & Associates, share the same address!

The Shadiness of the ‘Austrian Investment’

Contradicting himself, the governor has presented Wande Nexus as both a foreign firm/investor and an SPV.

Dr Ugochukwu Ugbor, who previously served as an adjunct in knowledge diplomacy at the International University of Vienna, Austria, owns a 90 per cent stake in Wande Nexus. One Ugwu Nwabueze Oliver holds the remaining 10 per cent.

In a joint statement with Ugbor, the state government said the project will be built under the Build-Own-Operate-Transfer (BOOT) model. This means a private entity (Wande Nexus, in this case) will build, own, and operate the infrastructure for a set period. During this time, it will generate revenue from the project. After the agreed period, ownership and operation will be transferred to the government or a public entity. The statement also said funding for the project will primarily come from European investors.

It should be noted that neither an Austrian parent company nor a specific European investor was named.

This $100M Water Project announcement has been met with public scrutiny. Many question the capability of Wande Nexus to deliver on such a large-scale project, given its establishment just six months ago and the absence of a registered, foreign parent company. While the firm claims to have a liaison office in Austria, there is barely any data about its status and operations. Conclusively, Wande Nexus is not an Austrian firm but a Nigerian SPV that was recently registered! No parent company or source of funding is available either.

OSTAP International Water Consulting

Ostap International Water Consulting, also known as ÖSTAP Engineering & Consulting GmbH, was named as another critical partner in the AMI project. Austrian investor DI Christoph Gierlinger chairs the firm and specialises in urban water and waste management. Ostap claims to have been in operation since 1971 but was certified by TÜV Austria in 2019,

Although OSTAP’s role in the Enugu AMI project is to provide technical oversight, the firm has received its share of criticism. An X platform user, Mikael Bernard, shared a paid document revealing the company’s total assets amount to just €34,000 (₦60.2 million), with liabilities exceeding €39,000 (₦69 million). These figures show that Ostap does not have the financial capacity to contribute to the $100 million investment.

Nwankwo Scott & Associates, NSA

Nwankwo Scott & Associates has an equally perplexing profile. The company’s corporate appearance on CAC shows it was registered twice – first on May 17, 1983, and later on November 15, 2021. NSA, an architectural company, had its website [nwankw0scott.com] registered on May 25, 2024, 4 days before Wande Nexus registered with the CAC. Meanwhile, NSA’s branch office is a shared building at 70 Nza Street, Independence Layout P. O. Box 1069, Enugu State. Again, what this means is that both Wande Nexus and NSA share branch address.

Findings reveal inconsistencies in the presentation of Wande Nexus and also show that neither of the project’s named partners possess the necessary liquidity. The source of the $100 million FDI into Enugu’s water project is thus shrouded in mystery, which is concerning.

Transparency Questions That Need Answers

Given the growing public scrutiny surrounding the AMI project, the Enugu State Government needs to address the following:

1. Why is Wande Nexus, a local SPV created six months ago, being posed as an international investor? If there is indeed a parent company, where in Austria is it situated?
2. Why does Wande Nexus have the exact same branch address as its purported partner, Nwankwo Scott Associates?
3. Where exactly is the announced $100 million investment coming from? Who are the investors?
4. What is the nature of the bilateral cooperation between Enugu State and Austria?
5. What are the specific terms of the agreement signed with the local and international partners? What does each partner stand to gain and for how long?
6. What is the hope for the 1.5 million residents promised access to potable and clean water in Enugu City?
7. Given that previous water projects – particularly the water galleries built in Enugu State – are barely functional, is this yet another unsustainable scheme?

Read More:

• Breaking: Tsunami Warnings Issued Following 7.0-Magnitude Earthquake off Northern California Coast
• JUST IN: Abuja-Bound Max Air Flight Makes Emergency Landing After Engine Catches Fire

About The Author

Confidence Ubani

author

See author's posts

Mayowa Durosinmi

author

M. Durosinmi is a West Africa Weekly investigative reporter covering Politics, Human Rights, Health, and Security in West Africa and the Sahel Region

See author's posts