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Nigeria: AFDB Leads  $263million Five-year Urbanization Funding in Abia state

The Africa Development Bank and Partners commits  $263.8 Million for Infrastructure Project in Abia State, south-eastern Nigeria. marking a significant stride in the state  urban development agenda with the Integrated Infrastructure Development Project.

The five-year project, a collaborative effort between the African Development Bank (AfDB), the Islamic Development Bank (IsDB), Nigeria’s Federal Government, and the Abia State government, aims to modernize urban infrastructure, enhance mobility, and foster inclusive, climate-resilient growth in the cities of Umuahia and Aba.

Statement released on Wednesday by the  AFDB noted the  project will  directly confronts longstanding infrastructure deficiencies in urban transport, erosion control, and waste management that have hampered mobility, public health, and economic productivity in Abia State. Over the next five years, it will see the rehabilitation of more than 248 kilometers of roads in Umuahia and Aba, the restoration of two critical erosion sites, and the catalysis of private sector investment in solid waste management through public-private partnerships.

Funding for this ambitious undertaking is robust and diversified. The African Development Bank is contributing $115 million, comprising $100 million from its ADB window and $15 million from the Canada-AfDB Climate Fund (CACF). The Islamic Development Bank is co-financing with a substantial $125 million, while the Federal Government of Nigeria is providing $23.8 million in counterpart funding.

Abia State, like many burgeoning regions, has grappled with mounting infrastructure challenges due to rapid urban expansion, environmental pressures, and historical underinvestment. Cities like Umuahia ( state capital)and Aba have faced aging road networks, persistent erosion threats, and overburdened waste management systems. This project signals a decisive shift towards an integrated, climate-resilient approach to urban development, designed to support inclusive growth and long-term sustainability.

Speaking on the latest development, Dr. Alex C. Otti, Governor of Abia State, emphasized the significance of the initiative for the State’s infrastructure renewal. He stated, “The fruits of development are richer when supported by partners who believe in your vision. We are focused on raising living standards, expanding access to education and healthcare, and driving economic productivity. Investor confidence is growing, public optimism is rising, and Abia is emerging as a destination of choice for opportunity and impact.”

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Beyond the physical infrastructure, the project is designed with a strong focus on job creation and skills development. It is anticipated to generate over 3,000 temporary jobs during the construction phase, with a commitment to reserving 30 percent of these for women. Furthermore, approximately 1,000 permanent jobs will be created during the operational phase, with a key feature being that 50 percent of these roles will be allocated to young people. These young individuals will receive training through the State Youth Road Maintenance Corps, a new cadre of local engineers drawn from all 17 Local Government Areas of Abia State.

Dr. Akande Oyebola, Assistant Director at the International Economic Relations Department of the Federal Ministry of Finance, reaffirmed the Nigerian Government’s commitment to the project, saying, “This initiative represents a significant milestone in our collective effort to drive economic growth, strengthen infrastructure, and improve the quality of life for the people of Abia State.” Dr. Abdul Kamara, Director General of the African Development Bank’s Nigeria Country Department, commended the leadership of both the federal and state governments. He remarked, “This project is rooted in partnership, ambition and long-term impact. At its core, this project is about lives, it is about reducing travel time by half, increasing incomes, improving access to schools and hospitals, and creating space for entrepreneurs, particularly women and youth, to thrive.”

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