The Federal Executive Council (FEC) has approved a $125 million loan from the Islamic Development Bank (IsDB) to fund Abia State’s ambitious Integrated Infrastructure Development Project.
This was announced in a statement issued Thursday by the Chief Press Secretary to Governor Alex Otti, Mr. Ukoha Ukoha, describing the development as a major breakthrough for the state’s infrastructural agenda.
According to the statement, the IsDB facility forms a critical part of a larger $263.8 million co-financing arrangement that also includes $100 million from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank, and $23.8 million in counterpart funding from the Abia State Government.
“This approval marks a key milestone in a project that has gone through extensive consultations and procedural processes. It is central to the state’s mission to overhaul its infrastructure,” the statement said.
The IsDB loan will fund the construction of over 126 kilometres of roads in Aba, and 35.57 kilometres in Umuahia, including a strategic link road between both cities.
The project will also include erosion control infrastructure across critical sites.
When completed, the infrastructure is expected to:
Reduce travel time across major urban corridors,
Create over 3,000 jobs for residents,
Cut greenhouse gas emissions,
Improve access to social services, and
Attract new private sector investment.
The Abia State Ministry of Works will execute the project, under the guidance of a State Steering Committee, which will provide policy direction and oversee implementation via a State Project Implementation Unit (SPIU).
Procurement for IsDB-funded aspects will follow the bank’s strict procurement rules, and disbursements will be made directly to contractors and consultants, ensuring transparency and efficiency.
The approval also validates Governor Otti’s infrastructural vision, which has emphasized road modernization, urban renewal, and sustainable development since he assumed office.
“This facility will accelerate road reconstruction efforts in Aba and Umuahia, address erosion challenges, and lay the foundation for an integrated transportation system that boosts commerce and improves quality of life,” the statement added.
Governor Otti expressed deep appreciation to President Bola Tinubu for his leadership and support, the National Assembly for approving the borrowing plan, and Finance Minister Wale Edun for finalizing the financing arrangements.
He also acknowledged the roles of the Secretary to the Government of the Federation, Attorney General of the Federation, and IsDB Vice President, Dr. Mansur Mukhtar, for pushing the process through.
“This project will complement our administration’s ongoing efforts to transform Abia into a hub of sustainable economic growth,” the governor said.
