In a significant move towards bolstering socio-economic growth and sustainability in Nigeria, the Nigerian government has secured $125 million from the Islamic Development Bank (IsDB) for the Abia State Integrated Infrastructure Development Project.
This allocation forms part of a broader $225 million funding approval aimed at propelling new development ventures, showcasing IsDB’s commitment to advancing critical infrastructure in emerging economies.
The approval came during the IsDB’s 354th meeting of the Board of Executive Directors, presided over by the esteemed H.E. Dr Muhammad Al Jasser, President and Group Chairman of IsDB. The meeting deliberated on pivotal projects aimed at fortifying socio-economic growth and sustainability in critical sectors, ultimately greenlighting funding for the Abia State project among others.
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The $125 million allocation for Nigeria is strategically poised to address key challenges facing the region’s infrastructure. It aims to significantly reduce travel times and costs on major roadways, concurrently enhancing market accessibility and social services for the local populace.
Emphasizing inclusivity, the project promises to bolster mobility for all residents, prioritizing safe and accessible transport options, notably for vulnerable community segments.
The statement released by IsDB read, “Nigeria secured a US$125 million financing package to contribute to the Abia State Integrated Infrastructure Development Project. The project aims to reduce travel times and costs along key roads, while also improving access to markets and social services for local communities. Additionally, the project will enhance overall mobility by ensuring safe and accessible transportation for all residents, including vulnerable groups.”
In addition to the Abia State project, IsDB also approved a $100 million investment in Malaysia’s Pengerang Energy Complex Project (PEC) under its Public Private Partnership program. This investment underscores IsDB’s commitment to fostering economic expansion and job creation, particularly in crucial sectors such as energy and petrochemicals.
Abia State has a robust budget of N567,240,095,972 for the year 2024, with capital expenditure accounting for 84% of the total budget. However, the budget comes with a deficit of more than N401 billion, which the state government said will be covered by new borrowings estimated at over N385 billion. Of this amount, half will be sourced externally, with the remaining acquired domestically.
On June 30, 2023, the African Development Bank Group’s Board of Directors approved a loan of $115 million to Abia State for a comprehensive road rehabilitation project. This collaborative effort, valued at a total of $263.80 million, underscores the collective commitment to enhancing infrastructure and fostering sustainable development in the state.
Governor Alex Otti, since taking office, has spearheaded various infrastructural development projects aimed at enhancing the living standards of Abia State residents. These initiatives include the overhaul of road networks, the establishment of erosion control mechanisms, and increased funding for health and education.
The projects, valued at millions of dollars, underline a shift from previous administrations, underscoring Otti’s dedication to improving infrastructure and fostering socio-economic growth in Abia State.
The IsDB’s allocation of $125 million for the Abia State Integrated Infrastructure Development Project represents a pivotal step towards addressing critical infrastructure needs in Nigeria. This strategic investment not only enhances connectivity and accessibility but also fosters socio-economic development, ultimately improving the quality of life for communities in the region.