Nigeria's Abia State Gets US$115 Million AfDB Loan

The funding will help to support the rehabilitation of 248.5km of roads.

By Liz Bains on
3rd July 2023

The African Development Bank (AfDB) has approved a US$115 million loan to Nigeria’s Abia State to support investment in road rehabilitation, erosion control and solid waste management.

A total of 248.5km of roads (58.03km in the state capital Umuahia and 190.43km in the commercial capital Aba) will be rehabilitated to asphaltic concrete standards at varying cross sections. Erosion sites in Umuahia and Aba will be reinstated and preparatory studies will be undertaken for private sector participation in solid waste management for the two cities. 

The project also includes capacity building, project management and development of social infrastructure, such as the rehabilitation of schools and the provision of sanitation facilities in schools, community markets and hospitals.

The total cost of the project, which is expected to be completed in 2029, is estimated at US$263.8 million. Additional funding will come from a US$125 million co-financing loan from the Islamic Development Bank and US$15 million from the Canada-African Development Bank Climate Fund (CACF).

The Abia State government will also provide US$23.80 million in counterpart funding for compensation to people affected by the project and implementation of a resettlement action plan.

With an estimated population of 553,000 and 814,000 respectively, Umuahia and Aba are experiencing serious infrastructure challenges following decades of underinvestment and rapid urbanisation. The situation is aggravated by gully erosion and the emergence of huge piles of solid waste on the roads.

The project is expected to create 3,000 temporary jobs during the construction phase, and about 1,000 permanent jobs during the operational phase. The permanent jobs will particularly benefit the youth, who will make up 50%. They will be trained in contract management by the State Youth Road Maintenance Corps.

Lamin Barrow, director general of the AfDB’s Nigeria Country Department, said the project will build resilience by providing the towns access to urban infrastructure services, including economic and social amenities.

Photo: Road construction in Nigeria (© Nsikak Ekong | Dreamstime)

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