The Abia State Government has moved forcefully to reclaim one of the State’s key assets—Abia Hotels, Umuahia after 12 years of what officials describe as consistent failure by Investment Guarantee Limited to honor its redevelopment obligations.
In 2013, the company entered into a 25-year Development Lease Agreement with a bold promise: transform Abia Hotels into a 3-Star Protea-standard facility and manage it on behalf of the State. More than a decade later, the Government says not only was the hotel not upgraded, but several core terms of the agreement were completely neglected.
Government sources say the State had exercised patience for years, issued reminders, and provided opportunities for compliance, but the company “persistently failed to deliver,” leaving the once-promising project abandoned and far below agreed standards. This prompted the State to revoke the Certificate of Occupancy and take back possession of the property.
In what observers describe as an unusual show of fairness in such matters, the Government still offered and paid compensation to Investment Guarantee Limited to cover verified costs incurred during the stalled redevelopment. According to officials, this aligns with the administration’s investment-friendly posture, even when enforcing accountability.
The recovery of Abia Hotels is being viewed as part of a broader shake-up aimed at ending the era of investors securing State assets only to leave them underutilized or abandoned for years.
The Abia State Government insists that while it welcomes genuine investors, it will no longer tolerate deals that deprive citizens of critical infrastructure or tie down public property without tangible progress.
Ctz. Ukoha Njoku Ukoha
Chief Press Secretary to the Executive Governor, Abia State
November 16, 2025
