Tinubu Approves $125 Million Islamic Development Bank Facility for Abia State Infrastructure Project

The Abia State Government has secured a significant financial boost for its infrastructure renewal program following the Federal Executive Council’s (FEC) approval of a $125 million Islamic Development Bank (IsDB) facility. The approval, granted on Wednesday, August 13, 2025, marks a major milestone for the Abia State Integrated Infrastructure Development Project (ABSIID).

The total project cost is $263.80 million, with funding structured as follows:

• $125 million from the Islamic Development Bank (IsDB)
• $100 million from the African Development Bank (AfDB)
• $15 million from the Canada–Africa Development Bank
• $23.80 million in counterpart funding from the Abia State Government

While financing agreements for the AfDB and Canada–Africa Development Bank have already been concluded, the IsDB facility was critical for the project’s commencement due to its integrated co-financing design. The AfDB loan agreement was signed earlier this year.

The IsDB financing will fund the construction of about 126 kilometres of road in Aba, 35.57 kilometres in Umuahia, and a link road between the two cities. It will also cover critical erosion control works within project sites. When completed, the project is expected to:

• Reduce travel time in major urban corridors
• Create over 3,000 jobs for residents
• Cut greenhouse gas emissions
• Improve access to healthcare, education, and other social services
• Stimulate private sector investment

The project will be managed by the Abia State Ministry of Works under the oversight of a State Steering Committee, which will provide policy direction to the State Project Implementation Unit (SPIU). Procurement for civil works and consultancy will follow IsDB guidelines, with payments made directly to contractors and consultants.

Governor Alex Otti, OFR, expressed gratitude to President Bola Ahmed Tinubu for his trust and leadership, the National Assembly for approving the borrowing plan, and Minister of Finance Wale Edun for steering the financing process. He also acknowledged the contributions of the Secretary to the Government of the Federation, the Attorney General of the Federation, and IsDB Vice President Dr. Mansur Muhktar, who initiated discussions in November 2023 and ensured internal approvals were secured.

Governor Otti described the project as a cornerstone of his administration’s infrastructure agenda, aimed at modernizing road networks, revitalizing urban centres, and fostering sustainable economic growth. He emphasized that the IsDB facility will accelerate road reconstruction in Aba and Umuahia, address erosion challenges, and lay the foundation for an integrated transportation network to boost commerce and enhance the state’s competitiveness.