The Abia State Government has secured a $263.8 million financing package from the African Development Bank (AfDB), the Islamic Development Bank (IsDB), and the Federal Government of Nigeria to address major infrastructure gaps in road rehabilitation, erosion control, and waste management across the state’s two major cities, Aba and Umuahia.
This was disclosed in a statement released by the African Development Bank on Wednesday, following the official launch of the Abia State Integrated Infrastructure Development Project on July 11, 2025.
According to the Bank, the project aims to modernize urban infrastructure, improve mobility, and promote inclusive, climate-resilient development. The financing package includes $115 million from AfDB, comprising $100 million 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 Nigerian Federal Government is contributing $23.8 million in counterpart funding.
“The African Development Bank, in partnership with the Islamic Development Bank, Nigeria’s Federal Government and Abia State, has launched the Abia State Integrated Infrastructure Development Project on 11 July 2025. The project is a transformative $263.8 million initiative to modernize urban infrastructure, enhance mobility, and promote inclusive, climate-resilient development
“The project addresses critical infrastructure gaps in urban transport, erosion control and waste management, which have long constrained mobility, public health and economic productivity in the cities of Umuahia and Aba in Abia State.
“The African Development Bank is contributing $115 million to the project, including $100 million from its ADB window and $15 million from the Canada-AfDB Climate Fund (CACF). The Islamic Development Bank is co-financing with $125 million, while the Federal Government of Nigeria is providing $23.8 million in counterpart funding,” the statement read in part.
The initiative will see the rehabilitation of over 248 kilometers of roads in Umuahia and Aba, restoration of two erosion sites, and a push to attract private investment in solid waste management through public-private partnerships.
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AfDB said the project is designed to address persistent challenges caused by aging infrastructure, environmental degradation, and underinvestment in urban services. These have long constrained economic productivity, public health, and access to essential services in Abia’s fast-growing cities.
- The Bank also highlighted social components built into the project, including employment creation, skills development, and support for women and youth entrepreneurs. Over 3,000 temporary jobs are expected during the construction phase, with 1,000 permanent roles to follow—half of which are reserved for young people.
- Additionally, the project will feature training, HIV/AIDS awareness campaigns, resettlement support, and strengthened financial oversight systems.
Governor Alex Otti, who spoke at the launch event, described the project as a “defining moment” in Abia’s development journey, affirming his administration’s commitment to transparency, accountability, and improved service delivery.
The African Development Bank will provide technical support and closely monitor project implementation through its Nigeria Country Department and sector teams.
