The Abia State Government has appreciated President Bola Ahmed Tinubu, the National Assembly, relevant federal agencies, the VP Islamic Development Bank, IsDB, Dr. Mansur Muhktar and other stakeholders for the roles they played in approving the borrowing plan for the long-awaited USD 125 Million IsDB financing facility for the Abia State Integrated Infrastructure Development Project.
The Government in a release endorsed by the Chief Press Secretary to Abia Governor, Ukoha Njoku Ukoha, noted that this landmark project will complement his administration’s ongoing infrastructural development initiatives, aimed at modernizing Abia’s transportation network, revitalizing urban centres, and positioning the State as a hub for sustainable economic growth.
According to the USD 125 Million Islamic Development Bank (IsDB) financing facility approved by the Federal Executive Council (FEC) at its meeting on Wednesday, August 13, 2025 is a major milestone in a project that has undergone extensive consultations and procedural steps, and is a critical component of the overall co-financing arrangement for the State’s ambitious infrastructure development drive.
The project’s total cost of USD 263.80 million, comprises: USD 125 million from the Islamic Development Bank [ IsDB]; USD 100 million from the African Development Bank (AfDB); USD 15 million from the Canada–Africa Development Bank; and USD 23.80 million counterpart funding from the Abia State Government.
Abia government states that the IsDB facility is particularly significant because its financing agreement must be signed for the project to proceed, given the integrated nature of the co-financing structure. The AfDB and Canada–Africa Development Bank financing agreements have already been concluded, with the AfDB loan agreement signed earlier this year.
Under the project, the IsDB financing will support the construction of approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia, including a link road between the two cities, as well as critical erosion control works within the project sites.
The project on realization will reduce travel time in Abia’s busiest urban corridors; create over 3,000 jobs for local residents; reduce greenhouse gas emissions; improve access to social services; and attract private sector investment.
The project which is owned by the Abia State Government will be executed through the State Ministry of Works, under the supervision of the State Steering Committee that will provide policy direction to the State Project Implementation Unit (SPIU) and all stakeholders.
Abia government describes the approval as a direct complement to the visionary infrastructural development agenda of the Dr Otti led administration that has made the modernization of Abia’s road networks, the revitalization of urban centres, and the integration of sustainable development principles a cornerstone of his administration.
