By Obinna Uballa
Governor Alex Otti of Abia State has welcomed the approval of a $125 million financing facility from the Islamic Development Bank (IsDB) for the state’s Integrated Infrastructure Development Project, describing it as critical and a “landmark milestone” that will drive road reconstruction, tackle erosion, and boost economic growth in the state.
Recall that the Federal Executive Council (FEC) gave its nod to the loan during its meeting on Wednesday, August 13, 2025.
In a statement issued on Thursday by his Chief Press Secretary, Ukoha Ukoha, the governor said the IsDB financing forms part of a $263.80 million co-financing arrangement, which also includes $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.
Agreements for the AfDB and Canada–Africa Development Bank contributions have already been finalised, he added.
He noted that the IsDB loan is pivotal to kick-starting the project’s integrated funding structure, with the funds earmarked for the construction of about 126 kilometres of roads in Aba, 35.57 kilometres in Umuahia, and a key link road between the two cities. The financing will also address critical erosion control challenges in the project area.
“When completed, this project will not only cut travel time in our busiest urban corridors but will also create over 3,000 jobs, reduce greenhouse gas emissions, and improve access to social services, while attracting more private sector investment into Abia,” Otti said.
The governor assured that the project would be executed by the Abia State Ministry of Works under the oversight of a State Steering Committee, with procurement for the IsDB-funded components following the bank’s strict guidelines. Payments, he stressed, would be made directly to contractors and consultants to ensure transparency and efficiency.
