Abia State Reclaims Abia Hotels, Citing Breach of Development Agreement

The Abia State Government has officially revoked the Certificate of Occupancy and reclaimed Abia Hotels, Umuahia, from Investment Guarantee Limited. The action follows the company’s failure to meet the terms of the Development Lease Agreement signed with the State Government in 2013.

Under the agreement, Investment Guarantee Limited was obliged to upgrade and redevelop the hotel into a 3-Star Protea Standard facility and manage it for 25 years. After 12 years, the company has not achieved the required redevelopment and is in breach of several conditions of the lease, prompting the government to terminate the agreement.

Demonstrating its investor-friendly approach, the Abia State Government provided compensation to Investment Guarantee Limited to cover costs already incurred in developing the hotel complex. This move was intended to support the investor while enabling the government to take full control of the facility for its intended purpose.

The State Government reaffirmed its commitment to fostering a business-friendly environment while ensuring that state assets are effectively utilized for the benefit of Abia citizens.