Abia State Governor, Dr Alex Otti, has hailed the Federal Executive Council’s approval of a $125 million Islamic Development Bank (IsDB) facility for the Abia State Integrated Infrastructure Development Project (ABSIID), describing it as “a direct complement to the visionary infrastructural development agenda” of his administration.
The approval, granted at FEC’s meeting on Wednesday, 13 August 2025, forms part of a $263.80 million co-financing package aimed at modernising Abia’s road networks, tackling erosion challenges, and revitalising its urban centres.
The financing arrangement comprises $125 million from the IsDB, $100 million from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank, and $23.80 million in counterpart funding from the Abia State Government.
While the AfDB and Canada–Africa Development Bank agreements have been finalised— with the AfDB loan signed earlier this year, the IsDB facility is considered essential to unlocking the full funding for the project, given the integrated structure of the financing.
Under the IsDB-backed component, the project will deliver approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia, including a link road between the two cities, alongside critical erosion control works.
According to the Abia State Government, once completed, the project will: reduce travel time in Abia’s busiest corridors, create over 3,000 jobs for local residents, reduce greenhouse gas emissions, improve access to social services and attract private sector investment.
Governor Otti in a press statement signed by his Chief Press Secretary, Ukoha Njoku Ukoha, expressed gratitude to President Bola Ahmed Tinubu “for his trust and pragmatic leadership”, the National Assembly “for approving the borrowing plan”, and the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, “for his leadership in concluding the financing process”.
He also thanked the Secretary to the Government of the Federation, the Attorney General of the Federation, and the Vice President of the IsDB, Dr Mansur Muhktar, “who not only reached out in November 2023, but saw to it that internal approvals were received on the request for the facility”, as well as other stakeholders involved.
“This landmark project will complement my administration’s ongoing infrastructural development initiatives, aimed at modernising Abia’s transportation network, revitalising urban centres, and positioning the State as a hub for sustainable economic growth”, Gov Otti said.
The project will be executed through the State Ministry of Works under the supervision of a State Steering Committee, which will guide the State Project Implementation Unit (SPIU) and other stakeholders. Procurement for the IsDB-financed components will follow the Bank’s guidelines, with payments made directly to contractors and consultants.
