Abia Secures $125 Million Islamic Development Bank Facility for Landmark Infrastructure Project

In a major boost to Abia State’s development agenda, the Federal Executive Council (FEC) has approved a $125 million financing facility from the Islamic Development Bank (IsDB) for the Abia State Integrated Infrastructure Development Project (ABSIID). The decision, made on Wednesday, August 13, 2025, paves the way for one of the state’s most ambitious infrastructure drives in recent years.

The ABSIID project carries a total price tag of $263.8 million, with funding structured through a multi-lender arrangement:

• $125 million from the Islamic Development Bank (IsDB)
• $100 million from the African Development Bank (AfDB)
• $15 million from the Canada–Africa Development Bank
• $23.8 million in counterpart funding from the Abia State Government

While agreements with the AfDB and Canada–Africa Development Bank were concluded earlier, the IsDB’s participation is considered pivotal due to the integrated nature of the financing plan. The facility will support over 160 kilometres of new and rehabilitated road networks—including 126 km in Aba, 35.57 km in Umuahia, and a strategic link road between the two cities. It will also fund critical erosion control measures.

Expected Impact

When completed, the project aims to:

• Reduce travel time along Abia’s busiest transport corridors
• Create more than 3,000 local jobs
• Cut greenhouse gas emissions
• Improve access to essential services
• Attract new private sector investment

The Abia State Ministry of Works will oversee execution through a State Project Implementation Unit (SPIU), guided by a State Steering Committee responsible for policy direction. Procurement and disbursement for the IsDB-funded components will follow the Bank’s strict guidelines, with payments going directly to contractors and consultants.

Part of a Larger Vision

The approval aligns with Governor Alex Otti’s broader infrastructural transformation strategy, which prioritizes modern road networks, urban renewal, and sustainable development. Since assuming office, Otti’s administration has pursued an aggressive push to revitalize Aba and Umuahia, tackle erosion threats, and improve the state’s connectivity to regional markets.

The governor expressed gratitude to President Bola Ahmed Tinubu, the National Assembly, the Minister of Finance Wale Edun, federal legal and administrative leaders, and IsDB Vice President Dr. Mansur Muhktar, among others, for their roles in making the facility a reality.

With financing now secured, the ABSIID is set to move from the planning phase into full implementation—ushering in what could be a transformative chapter for Abia State’s infrastructure and economy.