Stephen Ukandu, Umuahia
Abia State Governor, Dr. Alex Otti, has assured residents that there is no cause for alarm over the $125 million loan secured by the state from the Islamic Development Bank (IsDB).
Responding to a question during a media parley in Umuahia on Friday night, Otti dismissed insinuations that the loan had religious undertones, stressing that it was strictly for developmental purposes.
The governor pledged to utilize the funds judiciously on designated projects, noting that his administration was known for transparency and prudent resource management.
“You are worried about the $125 million loan because it is coming from the Islamic Development Bank? I don’t think there is any need for worry. Money doesn’t have colour—whether it comes from heaven or hell. What matters is using it for the right purpose, and that is exactly what we will do,” Otti said.
He added that the Commissioner for Finance would, in the coming days, provide full details of the loan facility.
“The conditions are very generous. When I reviewed them, I was utterly surprised. The only real concern is the exchange rate fluctuations. For example, if this money had been borrowed before May 2023, the rate was under ₦500 to the dollar. Today, it is much higher,” he explained.
On complaints by some workers and pensioners about salary or pension delays, the governor advised them to liaise with relevant agencies and the Commissioner for Finance to resolve issues, assuring that funds for payments were intact.
FG’s Approval of Loan
The Federal Executive Council had on Wednesday approved the $125 million IsDB financing facility for the Abia State Integrated Infrastructure Development Project.
In a statement by his Chief Press Secretary, Kazie Uko, Governor Otti said the approval “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 project’s total cost is $263.8 million, comprising $125 million from the IsDB, $100 million from the African Development Bank (AfDB), $15 million from the Canada–Africa Development Bank, and $23.8 million as counterpart funding from the Abia State Government.
According to the state government, the IsDB facility is particularly significant because its financing agreement must be signed for the project to proceed, given the integrated nature of the co-financing structure.
Project Scope
The IsDB financing will cover: Construction of about 126 kilometres of road network in Aba; Construction of 35.57 kilometres of road in Umuahia, including a link road between both cities; Critical erosion control works in the project sites.
When completed, the project is expected to: Reduce travel time in Abia’s busiest urban corridors; Create over 3,000 jobs; Reduce greenhouse gas emissions; Improve access to social services; Attract private sector investment.
The project will be executed through the Abia State Ministry of Works, under the supervision of a State Steering Committee, while procurement and disbursements will follow IsDB guidelines, with payments made directly to contractors and consultants.
Federal Support
Governor Otti commended President Bola Tinubu and other federal leaders for facilitating the approval.
“We thank President Bola Tinubu for his trust and pragmatic leadership; the National Assembly for approving the borrowing plan; the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; the Secretary to the Government of the Federation; the Attorney General of the Federation; and the Vice President of IsDB, Dr. Mansur Mukhtar, who personally followed through on the process,” Otti said.
He added that the loan would significantly strengthen his administration’s ongoing infrastructural revolution aimed at modernizing Abia’s transport network, revitalising urban centres, and positioning the state as a hub for sustainable economic growth.
