Nigeria: African Development Bank approves $115 million loan to Abia State for road rehabilitation, erosion control and solid waste management | African Development Bank Group

The board of directors of the African Development Bank Group has approved a $115 million loan to support a major road construction project in Nigeria’s Abia state. The project includes rehabilitation of roads, erosion control infrastructure and preparation of solid waste management facilities in the state capital, Umuahia, and commercial hub, Aba.

Funding for the project, estimated at a total cost of $263.80 million, will come through a $100 million loan from the African Development Bank; a $15 million Canada-African Development Bank Climate Fund (CACF) loan; and a $125 million co-financing loan from the Islamic Development Bank. The Abia State government will provide $23.80 million in counterpart funding to compensate people affected by the project and implement a resettlement action plan.

Under the project, which is expected to be completed by 2029, a total of 248.46 km of road – 58.03 km of roads in Umuahia and 190.43 km of roads in Aba – will be restored to asphalt concrete standards with different cross-sections. Erosion sites in Umuahia and Aba will be restored, as well as preliminary studies for private sector participation in solid waste management for the two cities. The project also includes capacity building, project management and social infrastructure development, such as rehabilitating schools and providing sanitation services in schools, community markets and hospitals.

With an estimated population of 553,000 and 814,000 respectively (2022 estimates), Umuahia, the state capital of Abia, and Aba, the commercial hub, currently face serious infrastructure challenges due to decades of underinvestment amid rapid urbanization. The situation is exacerbated by gully erosion and the emergence of huge piles of solid waste on the roads.

Upon completion, the 1.37 million residents of these two cities will benefit from shorter travel times, lower vehicle operating costs and lower transportation costs. The project will also create 3,000 temporary jobs (30% for women) in the construction phase and about 1,000 permanent jobs during the operational phase. The permanent jobs will mainly benefit young people, who will make up 50% of the project. They will be trained in contract management by the State Youth Road Maintenance Corps for road maintenance, a group of young Abia engineers drawn from the state’s 17 Local Government Areas.

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

Barrow said: “The results of the implementation of the project will help increase access to economic and social amenities in the two cities, thereby contributing to building sustainable and liveable cities.”

The African Development Bank’s portfolio in Nigeria includes 48 operations valued at $4.2 billion. National (federal and state) operations account for 90% of the portfolio, with 41 projects worth $3.79 billion, while multinational operations make up 10%, with 7 projects worth $0.41 billion. There are 24 Sovereign Operations ($2.36 billion or 56% of total pledges) and 24 Non-Sovereign Operations ($1.84 billion or 44%).