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Economic development

Federal Government Approves $125 Million Islamic Development Bank Financing for Abia State Infrastructure Project

Strategic Insights

— 1 min read

The Federal Executive Council (FEC) meeting held on August 13, 2025, approved a $125 million Islamic Development Bank (IsDB) financing facility for the Abia State Integrated Infrastructure Development Project. This significant milestone is a critical component of the project's co-financing arrangement, which aims to drive the State's ambitious infrastructure development drive. The project's total cost is estimated to be $263.80 million, with the Abia State Government providing $23.80 million in counterpart funding. The IsDB financing will support the construction of approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia, as well as critical erosion control works.

Key Takeaways:

  • The Abia State Integrated Infrastructure Development Project has a total cost of $263.80 million, with the Islamic Development Bank (IsDB) contributing $125 million.
  • The project will cover the construction of approximately 126 kilometres of road network in Aba and 35.57 kilometres in Umuahia, as well as critical erosion control works.
  • The Abia State Government will provide $23.80 million in counterpart funding, while the African Development Bank (AfDB) and Canada-Africa Development Bank will provide $100 million and $15 million, respectively.
  • The project is expected to create over 3,000 jobs for local residents, reduce travel time in Abia's busiest urban corridors, and improve access to social services.
  • The project will also attract private sector investment and reduce greenhouse gas emissions.
  • 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.
  • Procurement for the IsDB-financed components will follow the Bank's procurement guidelines, with disbursements made directly to contractors and consultants.

Statistics:

  • $125 million: IsDB financing approved for the Abia State Integrated Infrastructure Development Project.
  • $263.80 million: Total cost of the project.
  • $23.80 million: Counterpart funding provided by the Abia State Government.
  • $100 million: Contribution from the African Development Bank (AfDB).
  • $15 million: Contribution from the Canada-Africa Development Bank.
  • 126 km: Length of road network to be constructed in Aba.
  • 35.57 km: Length of road network to be constructed in Umuahia.
  • 3,000+: Jobs expected to be created for local residents.
  • 2 cities: Aba and Umuahia to be connected by a link road.

Sources:

  • Ukoha Njoku Ukoha, Chief Press Secretary to the Executive Governor of Abia State. (August 13, 2025). Statement on the approval of the IsDB financing facility for the Abia State Integrated Infrastructure Development Project.

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