‎PRESS RELEASE

‎For Immediate Release

‎16 August 2025

‎CHARS-Africa WELCOMES ABIA’s $125m IsDB LOAN APPROVAL — URGES TRANSPARENCY, LEGAL COMPLIANCE, AND FISCAL

‎PRUDENCE

‎The African Centre for Human Rights Advancement and Resource Support (CHARS-Africa) commends the Federal Executive Council’s approval of the long-awaited USD 125 million Islamic Development Bank (IsDB) financing facility for the Abia State Integrated Infrastructure Development Project (ABSIID), announced on August 13, 2025. This facility forms part of a broader USD 263.80 million co-financing arrangement that includes:

‎✓ USD 100 million from the African Development Bank (AfDB)

‎✓ USD 15 million from the Canada–Africa Development Bank

‎✓ USD 23.80 million in counterpart funding from the Abia State Government

‎CHARS-Africa recognizes this as a strategic milestone in the State’s urban modernization drive — the promise to upgrade 126 km of roads in Aba, 35.57 km in Umuahia, improvement of link roads between both cities, and execution of critical erosion control works.

‎Our commendations

‎✓ Integrated multi-lender structure: This aligns with global best-practice development financing, ensuring synergy and efficient use of the funds.

‎✓ Socio-economic potential: Projected to create 3,000+ jobs, reduce travel time, improve access to services, and cut greenhouse gas emissions.

‎✓ Strong intergovernmental coordination: The earlier conclusion of AfDB and Canada–Africa Development Bank agreements demonstrates procedural competence.

‎Concerns and Red Flags

‎While applauding the vision, CHARS-Africa warns that without robust safeguards, this loan could suffer from historical governance pitfalls in Abia State:

‎1. Procurement integrity risks — Past audits, including a 2023 KPMG review, revealed ₦31.8 billion in contracts were awarded to inactive companies, violating the Companies and Allied Matters Act (CAMA 2020) and procurement laws.

‎2. Opacity in land acquisitions and costs — Other major projects in Abia have faced conflicting land size claims, absence of Environmental Impact Assessments (EIAs), disregard for court orders, and non-inclusive consultations.

‎3. Weak financial disclosure culture — Public concerns persist over the non-disclosure of project costs and opaque use of ₦800 billion in 23 months.

‎Legal Obligations

‎CHARS-Africa urges full compliance with:

‎✓ Abia State Public Procurement Laws — to ensure open, competitive, and transparent procurement process.

‎✓ Companies and Allied Matters Act (CAMA 2020) — Sections 417–424 on eligibility of active companies.

‎✓ Freedom of Information Act (FOI 2011) — granting citizens access to procurement and project records.

‎✓ Environmental Impact Assessment Act, Cap E12 LFN 2004 — requiring comprehensive EIAs before project commencement.

‎Fiscal Responsibility Act – For Fiscal discipline

‎Recommendations to the Abia State Government

‎1. Enforce procurement compliance — Only award contracts to active, duly registered companies; publish all tender and award details.

‎2. Mandate EIAs and open land records — Publish environmental studies, geocoded maps, and compensation frameworks.

‎3. Create public transparency tools — Launch an online ABSIID dashboard with real-time updates on spending, contractors, and progress.

‎4. Respect for rule of law — No work on disputed land or litigated sites without court order.

‎5. Adopt milestone-based disbursement — Release funds only after verified project stages have been completed, or as agreed by law.

‎6. Set up a grievance redress system — Enable communities to report issues via hotlines, online portals, and liaison offices.

‎A Call for Vigilance

‎“Vision must be matched with vigilance,” CHARS-Africa in committing to this project states that, “This project is an opportunity for Abia State to set a national benchmark for transparency, accountability, citizen participation, and fiscal responsibility in externally financed infrastructure. If managed openly and lawfully, ABSIID can transform lives, restore trust, and make Abia a model for sustainable urban growth.”

‎Signed:

‎Amaka Biachi, Esq.

‎CHARS-Africa

‎charsafrica.ng@gmail.com

‎+234(0)703-553-2707.

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