Federal Government has approved $125 million Islamic Development Bank (IsDB) financing facility for Abia State Integrated Infrastructure Development Project.
The approval was made during the Federal Executive Council (FEC) meeting held Wednesday, August 13, 2025, according to Ukoha Njoku Ukoha, chief press secretary to the Executive Governor of Abia State in a statement.
Ukoha, noted that the approval marks a major milestone in a project that has undergone extensive consultations and procedural steps, a critical component of the overall co-financing arrangement for the State’s ambitious infrastructure development drive.
He explained that the project’s total cost is $263.80 million, comprising $125 million from the Islamic Development Bank (IsDB), $100 million from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank; and $23.80 million counterpart funding from the Abia State Government.
He said that the IsDB facility is particularly significant, 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, the IsDB financing will support the construction of approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia, including a link road between the two cities, as well as critical erosion control works within the project sites”.
When completed, the project according to the statement, would reduce travel time in Abia’s busiest urban corridors, create over 3,000 jobs for local residents, reduce greenhouse gas emissions, improve access to social services; and attract private sector investment.
According to the statement, the project is owned by the Abia State Government and will be executed, through the State Ministry of Works, under the supervision of the State Steering Committee.
“The Steering Committee will provide policy direction to the State Project Implementation Unit (SPIU) and all stakeholders.
“Procurement for the IsDB-financed components, covering civil works and consultancy services, will follow the Bank’s procurement guidelines, with disbursements made directly to contractors and consultants.
“This approval is also a direct complement to the visionary infrastructural development agenda of the administration. Since assuming office, the Governor has made the modernization of Abia’s road networks, the revitalization of urban centres, and the integration of sustainable development principles a cornerstone of his administration”.
“The IsDB facility will strengthen these ongoing efforts, accelerating the pace of road reconstruction in Aba and Umuahia, addressing critical erosion challenges, and laying the groundwork for an integrated transportation network that supports commerce, improves quality of life, and enhances the State’s competitiveness”.
