18th August 2025, NewsOrient, Opinion, Column, Governance And Development, Business And Economy, News
By Emeka Nwosu, PhD.

A few days ago, it was announced that the Federal Government has approved $125 million Islamic Development Bank (IsDB) facility for Abia State Integrated Infrastructure Development Project (ABSIIDP). The approval was given by the Federal Executive Council (FEC) at its meeting held on Wednesday, August 13, 2025.

The approval is considered a major breakthrough in the quest by Governor Alex Otti to secure significant funding for the various landmark projects initiated by his administration. In a press statement, the Chief Press Secretary to the Governor, Mr. Ukoha Njoku noted that the approval of the loan facility “marks a major milestone in a project that has undergone extensive consultations and procedural steps and is a critical component of the overall co-financing arrangement for the State`s ambitious infrastructure development drive.”

The total funds under the Integrated Infrastructure Development project is put at $263.8 million, comprising the following:
$125 million from the IsDB; $110 from the African Development Bank (AfDB); $15 million from the Canada-Africa Development Bank; and $23.50 million counterpart funding from the Abia State Government.

The facility from the IsDB is particularly considered significant because its financing agreement must be signed for the project to proceed, given the integrated nature of the co-financing structure. The IsDB facility is to finance critical projects which include the construction of 126 Kilometers of roads in Aba, and 35.57 Kilometers in Umuahia, including a link road between the two cities. The facility also covers critical erosion control works within the project sites.

Securing such a significant facility is not a small feat. It took a lot of hard work, perseverance and networking to pull it through. It is also a positive vote on the integrity, credibility and prudent character of the Otti administration. The Federal Government`s approval of the loan facility is a clear affirmation of confidence in the performance of Dr. Otti who has shown a strong determination to transform Abia into a modern economy.

From the great works the Otti administration has done so far in the State, there is no doubt whatsoever that the IsDB facility will be effectively utilized to build enduring infrastructure. The administration has since established a reputation for efficient and prudent management of scarce resources. It is clear to the approving authorities that the loan can never be mismanaged or diverted like was the norm in the past.

Governor Otti thanked President Bola Tinubu and other individuals and agencies who played one role or the other in making the facility possible, including the National Assembly for approving the borrowing plan. Similarly, he extended his appreciation to the Honourable Minister of Finance, Mr. Wale Edun and Secretary to the Government of the Federation (SGF), Senator George Akume for their roles in facilitating the process. He singled out the Vice President of IsDB, Dr. Mansur Muhktar, who not only reached out in November 2023, but saw to it that internal approvals within the Bank were received on the request for the facility.

Otti expressed confidence that the landmark projects to be funded with the IsDB facility would complement his administrations ongoing infrastructural development initiatives aimed at modernizing Abias transportation network, revitalizing urban centres, and positioning the State as a remarkable centre for economic development and growth.

The expected dividends from the earmarked projects covered by the loan facility include the reduction in travel time in Abia`s busiest urban corridors, creation of 3,000 direct jobs for local residents, reduction in greenhouse emissions, improvement of access to social services, and attraction of private sector investments among many other positives.

Dispassionate political observers are hardly surprised at this heartwarming development in Abia under Otti`s watch. As a financial guru and key player in the banking sector before his emergence as Governor, Otti, undoubtedly, understands the international economic terrain very well and knows how to navigate his way to achieve results. He deserves commendation for his indomitable efforts.

However, having gone through the projected plans under the facility, I believe that the allocation of only 35.7 Kilometers of road network to Umuahia is grossly insufficient. As the State capital, Umuahia deserves more than that. The Governor may, therefore, have to reconsider this proposal and allocate more kilometers of road to Umuahia. This may be an opportunity for the government to open up the adjoining communities in Umuahia which will lead to the expansion of the city to cater for the growing population. It will certainly go a long way in bringing development to the satellite villages.

May Abia continue to prevail!

Dr. Nwosu, a Public Policy Analyst, writes from Umuahia.
Email: cdnwosu2@gmail.com

~ Published By NewsOrient Network

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