FEC approves $125m Islamic Development Bank loan for Abia infrastructure project

The Abia State Government has confirmed the approval of a long-anticipated $125 million financing facility from the Islamic Development Bank (IsDB) for the Abia State Integrated Infrastructure Development Project.

According to a statement issued on Thursday by the Chief Press Secretary to Governor Alex Otti, Ukoha Ukoha, the Federal Executive Council (FEC) gave its nod to the loan during its meeting on Wednesday, August 13, 2025.

The statement described the approval as a major milestone in a project that has undergone extensive consultations and procedural steps. It is a key element in a broader co-financing arrangement valued at $263.80 million, comprising $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.

It noted that the IsDB facility is crucial to the project’s execution, as its signing will trigger the integrated co-financing structure. Agreements for the AfDB and Canada–Africa Development Bank contributions have already been concluded, with the AfDB loan signed earlier this year.

Under the plan, the IsDB financing will fund the construction of about 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 within the project area.

When completed, the initiative is expected to cut travel time in Abia’s busiest urban corridors, create over 3,000 local jobs, reduce greenhouse gas emissions, improve access to social services, and attract private sector investments.

The Abia State Ministry of Works will execute the project under the supervision of a State Steering Committee, which will provide policy direction to the State Project Implementation Unit (SPIU) and other stakeholders. Procurement for IsDB-funded components, covering civil works and consultancy services, will follow the bank’s procurement guidelines, with payments made directly to contractors and consultants.

The statement added that the approval aligns with Governor Otti’s development agenda, which prioritises modernising Abia’s road networks, revitalising urban centres, and embedding sustainable development principles into infrastructure planning.

Governor Otti expressed appreciation to President Bola Tinubu “for his trust and pragmatic leadership,” the National Assembly for approving the borrowing plan, and the Minister of Finance, Wale Edun, for finalising 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 IsDB, Dr. Mansur Muhktar, for their contributions, alongside other stakeholders.

“This landmark project will accelerate road reconstruction in Aba and Umuahia, tackle pressing erosion challenges, and lay the foundation for an integrated transportation network that supports commerce, improves quality of life, and enhances Abia’s competitiveness,” Otti said.

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