The Abia State Government has cancelled the Certificate of Occupancy for Abia Hotels, Umuahia, and taken back the property from Investment Guarantee Limited, saying the company failed to meet the terms of a 2013 Development Lease Agreement.
In a statement released by the Chief Press Secretary to the Governor, Ctz. Ukoha Njoku Ukoha, said the company had agreed to upgrade and redevelop the hotel into a 3-star Protea-standard facility and manage it for 25 years, but did not do so.
“The Abia State Government has revoked the Certificate of Occupancy and taken back Abia Hotels, Umuahia, from Investment Guarantee Limited because the company failed to meet the conditions of the 2013 agreement,” the statement said.
Ukoha explained that 12 years after signing the agreement, the company had not upgraded or redeveloped the hotel as promised. He added that the firm also violated several other parts of the contract, which led the government to end the lease.
“In the agreement, the company committed to turning the hotel into a 3-star Protea-standard facility and running it for 25 years. But after 12 years, it has not met these standards and has broken other terms of the contract,” he said.
Ukoha noted that even though the government revoked the lease, it still paid compensation to the company for expenses it had incurred, in line with the administration’s investor-friendly policies.
“This compensation was to support the investor and allow the State to put the hotel to proper use,” he added.
He reaffirmed the government’s commitment to making sure State-owned assets are properly used for the benefit of citizens.
“The Abia State Government remains committed to creating a good environment for businesses while ensuring that State assets are used in the best interest of its people,” Ukoha stated.
