The Board of Directors of the African Development Bank (AfDB) has given its approval for a loan of $115 million to support a significant road rehabilitation project in Abia State, Nigeria, according to a statement issued by the Nigeria Country Department of the bank. The project aims to address the rehabilitation of roads, erosion control infrastructure, and the establishment of solid waste management facilities in Umuahia (the state capital) and Aba (the commercial hub).
The project, with a total estimated cost of $263.80 million, will be financed through a $100 million loan from AfDB, a $15 million loan from the Canada-AfDB Climate Fund (CACF), and a co-financing loan of $125 million from the Islamic Development Bank (IDB). Additionally, the Abia State government will contribute $23.80 million in counterpart funding for compensation to affected individuals and the implementation of a Resettlement Action Plan.
Expected to be completed by 2029, the project encompasses a total of 248.46 kilometers of road. This includes 58.03 kilometers of roads in Umuahia and 190.43 kilometers of roads in Aba, which will undergo rehabilitation to asphaltic concrete standards at varying cross-sections. The project will also reinstate erosion sites in both cities and conduct preparatory studies for private sector involvement in solid waste management. Moreover, it will involve capacity building, project management, and the development of social infrastructure, such as the rehabilitation of schools and the provision of sanitation facilities in schools, community markets, and hospitals.
Umuahia and Aba, with estimated populations of 553,000 and 814,000 respectively (2022 estimates), currently face significant infrastructure challenges due to decades of underinvestment and rapid urbanization. These challenges are exacerbated by gully erosion and the accumulation of solid waste on the roads. Upon completion, the project is expected to benefit the combined population of 1.37 million in these two cities by reducing travel time, vehicle operating costs, and overall transportation expenses.
Additionally, the project will create approximately 3,000 temporary jobs (30% for women) during the construction phase and around 1,000 permanent jobs during the operational phase. These permanent positions will particularly benefit the youth, who will comprise 50% of the project workforce. The State Youth Road Maintenance Corps, consisting of young Abia engineers from the state's 17 local government areas, will provide contract management training for road maintenance.
Mr. Lamin Barrow, the Director-General of AfDB's Nigeria Country Department, emphasized that the project will enhance resilience by providing urban infrastructure services, along with economic and social amenities, to the cities. He stated, "The results from implementation of the project will help expand access to economic and social amenities in the two cities, and thereby contribute to building sustainable and liveable cities."
AfDB's portfolio in Nigeria comprises 48 operations worth $4.2 billion. Of the total portfolio, national (federal and state) operations account for 90% with 41 projects amounting to $3.79 billion, while multinational operations constitute 10% with seven projects amounting to $0.41 billion. The portfolio includes 24 Sovereign Operations, which account for $2.36 billion (56% of total commitments), and 24 Non-Sovereign Operations, amounting to $1.84 billion (44% of total commitments).
