Abia Govt Takes Back Abia Hotels Umuahia After 12 Years of Failed Agreement

The Abia State Government has officially revoked the Certificate of Occupancy of Abia Hotels, Umuahia, and taken back full possession of the property following what it described as a prolonged breach of contractual terms by the facility’s lessee, Investment Guarantee Limited.

According to a public statement issued on Sunday, November 16, 2025, by the Chief Press Secretary to the Governor, Ctz. Ukoha Njoku Ukoha and made available to ABN TV, the action became necessary after the company failed to deliver on the terms of the Development Lease Agreement it signed with the state government in 2013.

Under the agreement, the lessee was expected to redevelop and upgrade Abia Hotels to a 3-Star Protea Standard Hotel and manage it for a period of 25 years. However, 12 years after signing the contract, the government noted that the investor had failed to meet the agreed redevelopment benchmarks and had breached additional obligations contained in the lease.

“In view of the company’s inability to fulfill its commitments, the Abia State Government has revoked the Development Lease Agreement and repossessed the property,” the statement read.

Despite the revocation, the government explained that it acted in good faith and in line with its investor-friendly posture by compensating Investment Guarantee Limited for costs incurred during the period of engagement. The move, the statement added, was to ensure fairness and allow the government to reclaim and repurpose the facility without dispute.

The government emphasized that the takeover is consistent with its policy of ensuring that state assets are efficiently managed and utilized for the benefit of Abia citizens.

“The Abia State Government remains committed to creating an enabling environment for genuine investors while ensuring that public property is deployed responsibly and in the interest of the people,” the statement concluded.

The decision marks a major step in the government’s ongoing efforts to reposition and commercialize dormant public infrastructure across the state.