Abia govt secures $125m loan from Islamic Bank

The Federal Executive Council has approved a $125 million loan facility from the Islamic Development Bank (IsDB) to support Abia State’s ambitious infrastructure drive.

Chief Press Secretary to Governor Alex Otti, Mr. Ukoha Njoku, confirmed the development in a statement issued Thursday in Umuahia, noting that the funds are earmarked for the state’s Integrated Infrastructure Development Project.

“This approval marks a major milestone in a project that has undergone extensive consultations and procedural steps. The fund is a critical component of the overall co-financing arrangement for the state’s ambitious infrastructure development drive. The project’s total cost is $263.80 million,” Ukoha stated.

He explained that, alongside the IsDB facility, $100 million would be sourced from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank, and $23.80 million as counterpart funding from the state government.

Describing the IsDB loan as pivotal, Ukoha said, “because its financing agreement must be signed for the project to proceed, given the integrated nature of the co-financing structure. The AfDB and Canada–Africa Development Bank financing agreements have already been concluded, with the AfDB loan agreement signed earlier this year.”

Under the project, about 126 kilometres of road will be built in Aba and 35.57 kilometres in Umuahia, including a key link road between the two cities and extensive erosion-control works. The development is expected to cut travel time across Abia’s busiest corridors, generate over 3,000 local jobs, curb greenhouse emissions, and attract private investment.

The initiative will be executed by the State Ministry of Works under the guidance of a State Steering Committee, with disbursements from IsDB made directly to contractors and consultants.

“This milestone follows sustained engagement and intergovernmental coordination. This approval is also a direct complement to the visionary infrastructural development agenda of the administration,” Ukoha added.

Governor Otti, according to the statement, expressed gratitude to President Bola Tinubu for his “trust and pragmatic leadership” and to the National Assembly for endorsing the borrowing plan. He also acknowledged the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, and other federal stakeholders, including the SGF, the Attorney General, and IsDB Vice President Dr. Mansur Muhktar.

Ukoha said Otti sees the project as a cornerstone of his administration’s effort to modernise the state’s transport network, rejuvenate urban centres and drive sustainable growth.

“The IsDB facility will strengthen these ongoing efforts, accelerating the pace of road reconstruction in Aba and Umuahia. It will also address critical erosion challenges, and lay the groundwork for an integrated transportation network that supports commerce, improves quality of life, and enhances Abia’s competitiveness,” Ukoha added.