FEC Approves $125m IsDB Loan for Abia’s Infrastructure Development

Abia State Government has received approval from the Federal Executive Council (FEC) for a $125 million loan from the Islamic Development Bank (IsDB) to fund its Integrated Infrastructure Development Project.

The announcement was made by Mr. Ukoha Njoku, Chief Press Secretary to Governor Alex Otti, in a statement released to journalists in Umuahia on Thursday, following the FEC’s meeting on August 13, 2025.

Njoku described the approval as a pivotal step for the state’s infrastructure ambitions, noting that the IsDB loan is part of a broader $263.8 million project financing package.

“This is a critical milestone after extensive consultations and procedural efforts,” he said.

The funding includes $100 million from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank, and a $23.8 million counterpart contribution from the Abia State Government.

The IsDB facility is vital to the project’s progress, as its financing agreement must be signed to unlock the integrated co-financing structure.

“The AfDB and Canada–Africa Development Bank agreements are already in place, with the AfDB loan signed earlier this year,” Njoku explained.

He highlighted that the IsDB funds will support the construction of approximately 126 kilometers of roads in Aba and 35.57 kilometers in Umuahia, including a link road connecting the two cities and critical erosion control measures.

The project is expected to significantly reduce travel times in Abia’s busiest urban corridors, create over 3,000 jobs, lower greenhouse gas emissions, improve access to social services, and attract private sector investment.

“This initiative will transform transportation, boost commerce, and enhance the quality of life for Abians,” Njoku said.

Managed by the Abia State Ministry of Works under the supervision of a State Steering Committee, the project will adhere to IsDB procurement guidelines, with funds disbursed directly to contractors and consultants.

Njoku emphasized the project’s alignment with Governor Otti’s vision for modernizing Abia’s road network, revitalizing urban centers, and embedding sustainable development principles.

“The IsDB loan will accelerate road reconstruction in Aba and Umuahia, address erosion challenges, and establish an integrated transport network to drive economic growth,” he added.

Governor Otti expressed gratitude to President Bola Tinubu for his support and pragmatic leadership, as well as to the National Assembly for approving the borrowing plan.

“I deeply appreciate the Minister of Finance, Mr. Wale Edun, the Secretary to the Government of the Federation, the Attorney General, and Dr. Mansur Muhtar, Vice President of IsDB, for their roles in securing this facility,” Otti said

He noted that the project complements his administration’s ongoing efforts to modernize Abia’s infrastructure and position the state as a hub for sustainable economic development.