•Abia Governor Alex Otti hails $125m Islamic Development Bank loan approval, unlocking roads, erosion control, and job creation.
The coast is now clear for the Abia State Government to access the long-awaited loan facility of $125 million from the Islamic Development Bank (IsDB), in order to execute the state’s integrated infrastructure development (ABSIID) projects.
The loan approval was made known in a press release statement issued by Mr. Ukoha Njoku Ukoha, the Chief Press Secretary to Governor Alex Otti.
He said that the “government is pleased” to announce the loan approval by the Federal Executive Council (FEC) at its meeting on Wednesday, August 13, 2025.
“This approval marks 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,” he said.
According to Governor Otti’s spokesman, the total cost of implementing the ABSIID projects “is USD 263.80 million” would be co-financed by international financial institutions and the Abia government.
The breakdown shows that IsDB would provide USD 125 million, USD 100 million from the African Development Bank (AfDB), USD 15 million from the Canada-Africa Development Bank (CADB), while Abia would put in counterpart funding to the tune of USD 23.80 million.
Ukoha noted 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”.
He said that the AfDB and CADB financing agreements had 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,” Ukoha said.
He listed the benefits that Abia would derive from implementing the projects, saying that travel time in Abia’s busiest urban corridors would be reduced and over 3,000 jobs would be created.
The CPS also stated that completion of the projects would reduce greenhouse gas emissions, improve access to social services, and attract private sector investment.
He pointed out that “the project is owned by the Abia State Government and will be executed through the State Ministry of Works, under the supervision of the State Steering Committee.”
The Committee would also provide policy direction to the State Project Implementation Unit (SPIU) and all stakeholders.
“Procurement for the IsDB-financed components, covering civil works and consultancy services, will follow the Bank’s procurement guidelines, with disbursements made directly to contractors and consultants,” Ukoha stated.
He noted that “this milestone” covered in its developmental strides came about following “sustained engagement and intergovernmental coordination” hence the loan approval “is also a direct complement to the visionary infrastructural development agenda of the administration.”
Said the CPS, “Since assuming office, the governor has made the modernisation of Abia’s road networks, the revitalisation of urban centres, and the integration of sustainable development principles a cornerstone of his administration.
“The IsDB facility will strengthen these ongoing efforts, accelerating the pace of road reconstruction in Aba and Umuahia, addressing critical erosion challenges, and laying the groundwork for an integrated transportation network that supports commerce, improves quality of life, and enhances the State’s competitiveness.”
Otti was said to have profusely thanked all those that made the loan approval possible, especially President Bola Ahmed Tinubu “for his trust and pragmatic leadership.”
He also expressed gratitude to the National Assembly, “for approving the borrowing plan”, Finance Minister and Coordinating Minister of the Economy, Mr. Wale Edun, “for his leadership in concluding the financing process.”
In addition, the highly elated Abia chief executive thanked the Secretary to the Government of the Federation, Senator George Akume, and Attorney General of the Federation, Chief Lateef Fagbemi, “for their roles in facilitating the process.
While expressing gratitude to the Vice President of IsDB, Dr. Mansur Muhktar, Otti noted that he “not only reached out in November 2023, but saw to it that internal approvals were received on the request for the facility.