August 14, 2025 – The Abia State Government has announced that the Federal Executive Council (FEC) has approved the long-awaited USD 125 million Islamic Development Bank (IsDB) financing facility for the Abia State Integrated Infrastructure Development Project.
The approval, which came at the FEC meeting of Wednesday, August 13, 2025, marks a major step in a project that has undergone detailed consultations and procedural steps. Officials say the project is a key part of the State’s overall co-financing arrangement for its ambitious infrastructure development programme.
The total cost of the project is USD 263.80 million, to be funded as follows:
1. USD 125 million from the Islamic Development Bank (IsDB)
2. USD 100 million from the African Development Bank (AfDB)
3. USD 15 million from the Canada–Africa Development Bank
4. USD 23.80 million counterpart funding from the Abia State Government
The IsDB facility is critical because its financing agreement must be signed for the project to move forward, given the interconnected nature of the co-financing structure. The AfDB and Canada–Africa Development Bank financing agreements are already in place, with the AfDB loan agreement signed earlier in 2025.
Under the project, IsDB funds will be used to construct about 126 kilometres of roads in Aba, 35.57 kilometres of roads in Umuahia, and a connecting road between the two cities. It will also address critical erosion control works in the project areas. Once completed, the project will:
1. Reduce travel time in Abia’s busiest urban corridors
2. Create over 3,000 jobs for local residents
3. Reduce greenhouse gas emissions
4. Improve access to social services
5. Attract private sector investment
The Abia State Government owns the project, which will be executed through the State Ministry of Works. Oversight will be provided by the State Steering Committee, which will guide the State Project Implementation Unit (SPIU) and all related stakeholders.
Procurement for IsDB-funded works and consultancy services will follow the Bank’s procurement rules, with payments made directly to contractors and consultants.
Officials noted that the FEC approval came after sustained engagement and coordination between different levels of government. They say the funding aligns with the administration’s vision of upgrading Abia’s road network, improving urban infrastructure, and incorporating sustainable development principles into major projects.
Governor Alex Otti, OFR, said the facility will fast-track road reconstruction in Aba and Umuahia, tackle erosion problems, and help create a more integrated transportation system to boost trade, enhance quality of life, and improve the State’s competitiveness. “This project will strengthen our ongoing efforts and accelerate the pace of infrastructural renewal in Abia,” the Governor said.
He expressed gratitude to key figures who made the approval possible:
1. President Bola Ahmed Tinubu for his trust and pragmatic leadership
2. The National Assembly for approving the borrowing plan
3. The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, for his leadership in concluding the financing process
4. The Secretary to the Government of the Federation and the Attorney General of the Federation for their roles in facilitating the process
5. The Vice President of the IsDB, Dr. Mansur Muhktar, who reached out in November 2023 and ensured internal approvals were obtained for the facility
6. All other stakeholders who contributed to the success
Governor Otti emphasised that the Abia State Integrated Infrastructure Development Project will work alongside other ongoing projects to modernise transportation, revitalise urban areas, and make Abia a hub for sustainable economic growth.
He said the State is committed to transparent project management and ensuring that the funding delivers tangible benefits to residents.