The Abia State Government has taken back full control of Abia Hotels in Umuahia following more than a decade of inactivity and repeated violations of contractual terms by Investment Guarantee Limited.
According to afnews.ng, Authorities say the revocation of the hotel’s Certificate of Occupancy became necessary to safeguard state assets and ensure the long-neglected property is finally put to productive use.
According to a public announcement issued on Sunday by the Chief Press Secretary to the Governor, Ctz. Ukoha Njoku Ukoha, the Abia Hotels revocation followed a long record of non-compliance with the 2013 Development Lease Agreement, which mandated the company to upgrade the hotel to a 3-Star Protea Standard and manage it for 25 years.
However, more than a decade later, government officials say not a single part of the hotel met the agreed standard, leaving one of the state’s most strategic hospitality assets dilapidated, underutilized, and far below its economic potential.
Investigations by the state revealed that Investment Guarantee Limited had failed to deliver any meaningful redevelopment of the Abia Hotels facility. The hotel, which should have been transformed into a modern, revenue-generating Protea-standard establishment, remained in near-abandoned condition.
Government sources insist that multiple reminders and interventions yielded no progress, prompting the decision to act.
Beyond the failure to upgrade the hotel, the company reportedly breached other key terms of the agreement, worsening concerns about the viability of the partnership and the potential long-term loss to the state.
The government noted that Abia Hotels—one of the state’s historic and economic landmarks—could no longer be left in the hands of a lessee that demonstrated no capacity, commitment, or willingness to meet its obligations.
In what the state describes as a demonstration of its investor-friendly posture, the government offered and paid compensation to Investment Guarantee Limited for costs associated with the development attempt, despite the multiple breaches.
Officials say the gesture was intended not only to end the stagnation around the facility but also to pave way for fresh redevelopment plans that would unlock the hotel’s full value for the people of Abia State.
The Otti-led administration reiterated that public assets would no longer be allowed to rot away or be controlled by entities that fail to meet contractual obligations.
“The Abia State Government remains committed to creating a conducive environment for businesses to thrive while ensuring that state assets are utilized in the best interest of its citizens,” the statement added.
The revocation is seen by analysts as a major step in the state’s broader reforms targeting dormant assets, abandoned projects, and non-performing facilities across Abia.
