President Bola Ahmed Tinubu has approved a $125 million financing facility from the Islamic Development Bank (IsDB) for the Abia State Integrated Infrastructure Development Project (ABSIID), marking a major breakthrough in the state’s multi-billion-dollar infrastructure renewal drive.
The approval, granted at the Federal Executive Council (FEC) meeting on Wednesday, August 13, 2025, completes the final piece of a $263.80 million co-financing arrangement for the ambitious project. The funding structure includes $100 million from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank, and $23.80 million in counterpart funding from the Abia State Government.
Governor Alex Otti, OFR, described the IsDB facility as critical to the commencement of the project, noting that its signing is a key prerequisite for the integrated co-financing to proceed. He revealed that agreements with the AfDB and Canada–Africa Development Bank had already been concluded earlier this year.
Under the scheme, the IsDB funds will finance the construction of 126 kilometres of roads in Aba, 35.57 kilometres in Umuahia, and a link road between the two cities. It will also address critical erosion control needs in the project areas. When completed, the project is expected to reduce travel time in Abia’s busiest urban corridors significantly, create over 3,000 jobs, lower greenhouse gas emissions, enhance access to social services, and attract private sector investment.
The project will be executed by the State Ministry of Works under the guidance of a State Steering Committee, with procurement and disbursement carried out by IsDB guidelines, ensuring that payments are made directly to contractors and consultants.
Governor Otti expressed appreciation to President Tinubu for his “trust and pragmatic leadership,” the National Assembly for approving the borrowing plan, Minister of Finance Wale Edun for concluding the financing process, as well as the Secretary to the Government of the Federation, the Attorney General of the Federation, and IsDB Vice President Dr. Mansur Muhktar for their roles in facilitating the deal.
“This landmark project will accelerate road reconstruction in Aba and Umuahia, address erosion challenges, and lay the foundation for an integrated transportation network that will boost commerce, improve living standards, and position Abia as a competitive economic hub,” Otti stated.
The ABSIID forms part of the Otti administration’s broader vision to modernize infrastructure, revitalize urban centres, and drive sustainable economic growth in Abia State.
