AfDB Approves $115 Million Loan for Abia State Road Rehabilitation, Erosion control Project

The Board of Directors of the African Development Bank Group (AfDB) has given the green light for a loan of $115 million to support a significant road rehabilitation project in Abia State.

The project aims to revamp roads, implement erosion control infrastructure, and establish solid waste management facilities in Umuahia (the state capital) and Aba (the commercial hub).

Financing for the project, with an estimated total cost of $263.80 million, will be sourced from various entities. The African Development Bank will provide a loan of $100 million, the Canada–African Development Bank Climate Fund (CACF) will contribute $15 million, and the Islamic Development Bank will offer a co-financing loan of $125 million. Additionally, the Abia State government will contribute $23.80 million as counterpart funding, covering compensation for affected individuals and the implementation of a Resettlement Action Plan.

The project aims to rehabilitate a total of 248.46 km of roads, with 58.03 km in Umuahia and 190.43 km in Aba, to asphaltic concrete standards across varying cross-sections. Furthermore, it will address erosion sites in both cities and conduct preparatory studies for private sector involvement in solid waste management. The initiative also includes capacity building, project management, and the development of social infrastructure such as school rehabilitation, sanitation facilities in schools, community markets, and hospitals.

Umuahia and Aba, with estimated populations of 553,000 and 814,000 respectively (2022 estimates), face significant infrastructure challenges due to historical underinvestment and rapid urbanization.

The situation is worsened by gully erosion and the accumulation of solid waste on roads. The project aims to alleviate these issues, benefiting the combined population of 1.37 million by reducing travel time, lowering vehicle operating costs, and decreasing transport expenses.

Additionally, the project will generate approximately 3,000 temporary jobs during the construction phase, with 30 percent reserved for women. In the operational phase, it will create around 1,000 permanent jobs, primarily benefiting the youth, who will account for 50 percent of the workforce. The State Youth Road Maintenance Corps, comprising young engineers from Abia’s 17 Local Government Areas, will train these individuals in contract management for road maintenance.

Lamin Barrow, the Director General of the African Development Bank’s Nigeria Country Department, emphasized that the project would enhance resilience and provide urban infrastructure services, including economic and social amenities, to Umuahia and Aba. By improving access to such amenities, the project aims to build sustainable and livable cities.

The statement further noted that the African Development Bank’s portfolio in Nigeria consists of 48 operations worth $4.2 billion. Of these, 90 percent pertain to national (Federal and States) operations, comprising 41 projects totaling $3.79 billion. The remaining 10 percent corresponds to multinational operations, which include seven projects amounting to $0.41 billion.

The bank’s portfolio consists of 24 Sovereign Operations (56 percent of total commitments, amounting to $2.36 billion) and 24 Non-Sovereign Operations (44 percent of total commitments, totaling $1.84 billion).