The Abia State Government has this evening announced the payment of N450 million to Investment Guarantee Limited, effectively terminating the controversial 25-year redevelopment lease for Abia Hotels Limited, Umuahia, after alleging 12 years of non-performance by the private partner.
In a statement released by the Chief Press Secretary to the Governor, Ctz. Njoku Ukoha, the government said it has retaken full possession of the property and will immediately commence fresh redevelopment plans.
What Happened?
The state government disclosed that the agreement, signed in 2013, required Investment Guarantee Limited to upgrade the hotel to a 3-star Protea standard within two years, source funding, submit development plans, and pay N3 million annually in royalties.
According to the government, none of these obligations were met over a 12-year period.
Claims and Counterclaims
When confronted, the company claimed—through correspondences dating back to 2014—that it had been granted a 10-year moratorium on royalty payments and had invested over N900 million in the stalled project.
But a fresh valuation by Jide Taiwo & Co. on August 22, 2025, put the value of the property at N708.9 million, prompting the government to demand proof of the alleged investment.
High-Level Negotiations
To avoid a prolonged legal battle, the government said it opened negotiations with the firm. The company’s Managing Director reportedly appointed a legal representative, Barr. Martin Uchehara Okoroafor, on health grounds.
After several meetings involving federal lawmaker Hon. Obi Aguocha and Hon. Lookman Ukara, both sides agreed to a N450 million compensation to terminate the lease.
On October 30, 2025, the legal representative formally requested payment into the Managing Director’s Keystone Bank account. The bank confirmed receipt shortly afterward.
Government Moves In
“The transaction is now concluded. The Abia State Government has fully reclaimed Abia Hotels Limited and will proceed with its redevelopment,” the CPS said.
He added that the Otti administration settled the matter “in good faith” to protect the state’s investment climate while enforcing accountability.
What’s Next?
Government officials say a new redevelopment framework for the iconic hotel will be unveiled soon.
