ABIA STATE GOVERNMENT REVOKES C OF O, TAKES OVER ABIA HOTELS UMUAHIA AFTER FAILED REDEVELOPMENT AGREEMENT

The Abia State Government has officially revoked the Certificate of Occupancy (C of O) and taken back full possession of Abia Hotels, Umuahia, from its lessee, Investment Guarantee Limited, over what it described as a breach of contractual obligations and failure to meet agreed redevelopment standards.

According to an official announcement, the action follows the inability of Investment Guarantee Limited to fulfill the terms of the Development Lease Agreement executed with the State Government in 2013. Under the agreement, the company was required to upgrade and redevelop the state-owned hospitality facility into a 3-Star Protea Standard Hotel and subsequently manage it for a 25-year lease duration.

Twelve years after the agreement was sealed, the government disclosed that there was no significant progress towards the promised upgrade and redevelopment of the hotel. The company was also accused of defaulting on other key conditions required to justify continued possession of the public asset, prompting the revocation and repossession directive.

In what the government described as a demonstration of fairness and continued support for private sector investment, compensation was offered and paid to Investment Guarantee Limited to cover its development expenses on the hotel property, despite the agreement breach. The compensation, the government noted, aligns with its pro-investment and business-friendly posture.

The State Government reaffirmed its unwavering commitment to promoting a conducive environment for private investors while ensuring that state-owned assets are efficiently utilized for public benefit and sustainable development.

The announcement was signed by Ctz. Ukoha Njoku Ukoha, Chief Press Secretary to the Executive Governor of Abia State, and dated November 16, 2025.