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Abia Secures $263.8 Million Infrastructure Funding from AfDB, IsDB

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Abia State has secured a major boost to its infrastructure plans, with $263.8 million in funding committed by the African Development Bank and the Islamic Development Bank. The initiative, launched on July 11, 2025, is part of a broader partnership involving the Federal Government of Nigeria and the Abia State Government.

According to a press statement released by the AfDB, the fund will be used to rehabilitate over 248 kilometres of urban roads and modernise infrastructure in the cities of Umuahia and Aba. The project is officially known as the Abia State Integrated Infrastructure Development Project.

The AfDB is contributing $115 million, of which $100 million comes from its ADB window and $15 million from the Canada-AfDB Climate Fund. The Islamic Development Bank is co-financing with $125 million, while the Federal Government has committed $23.8 million as counterpart funding.

The project is designed to address long-standing issues in urban transportation, erosion control, and waste management. These challenges have for years affected mobility, economic productivity, and public health in Abia’s urban centres. The new investment aims to change that through modern, climate-resilient infrastructure.

Abia Governor Alex Otti described the initiative as a defining moment for the state’s development. Speaking at the launch event, Otti said the project reflects the growing confidence of development partners in Abia’s leadership and long-term vision. He noted that the government is focused on improving living standards, boosting access to education and healthcare, and unlocking new economic opportunities.

The AfDB explained that the project is not just about fixing infrastructure but also about improving lives. It is expected to reduce travel time by half, improve access to schools and hospitals, and create new opportunities for local businesses. In addition to road construction, the plan includes restoring two erosion sites and encouraging private sector involvement in solid waste management.

The construction phase is expected to create over 3,000 temporary jobs, with 30 per cent reserved for women. About 1,000 permanent roles will be generated during the operational phase, half of which will go to young people. These youths will be trained through the State Youth Road Maintenance Corps, which draws engineers from all 17 local government areas in the state.

Dr Abdul Kamara, Director General of AfDB’s Nigeria Country Department, said the project is anchored on impact and inclusion. He emphasised that it is aimed at reducing poverty, raising household incomes, and improving everyday access to essential services.

Social safeguards and community support programs are also included in the project framework. These will cover training for youth and women entrepreneurs, resettlement support, public health awareness campaigns, and upgrades to financial and procurement systems.

Dr Akande Oyebola, Assistant Director at the International Economic Relations Department of the Federal Ministry of Finance, described the investment as a significant step in Nigeria’s push for inclusive economic growth. He said the partnership demonstrates a shared commitment to national development goals.

The Abia State Commissioner for Works, Otumchere Oti, assured stakeholders that the project will be implemented transparently and monitored closely. He said the government is determined to deliver value through strict oversight and clear accountability.

The African Development Bank confirmed that it will continue to provide technical support, capacity building, and direct supervision through its country office and sector specialists. The project, it added, aligns with its broader commitment to Nigeria’s development priorities, especially in the areas of sustainable infrastructure and inclusive economic growth.

What to know

Q: What is the Abia State Infrastructure Project about?
A: It is a multi-million dollar project aimed at rebuilding roads, controlling erosion, and improving waste management in Umuahia and Aba.

Q: Who is funding the project?
A: The African Development Bank, Islamic Development Bank, Federal Government of Nigeria, and Abia State Government.

Q: How much is being invested?
A: A total of $263.8 million is being invested in the infrastructure plan.

Q: Which areas will benefit?
A: The cities of Umuahia and Aba are the main focus.

Q: How many jobs will be created?
A: Over 3,000 temporary jobs during construction and 1,000 permanent jobs post-completion.

Q: When was the project launched?
A: The project was launched on July 11, 2025. [/faq]

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