The Abia State Government has formally withdrawn the Certificate of Occupancy for Abia Hotels, Umuahia, ending its 25-year lease arrangement with Investment Guarantee Limited over what officials described as persistent contractual violations.
The decision, announced on Sunday through a statement issued by the Chief Press Secretary to Governor Alex Otti, Ukoha Njoku Ukoha, signals a decisive shift in the state’s bid to restore public assets long trapped in underperforming private arrangements.
According to the statement, the private firm, which took over the hotel in 2013 under a Development Lease Agreement, committed to upgrading the facility into a three-star Protea-standard hotel and managing it for the duration of the lease. Twelve years on, however, the government said the company had failed to execute the promised redevelopment.
Officials further alleged that the firm breached several additional terms embedded in the lease agreement, raising concerns about its capacity to deliver on the transformation of the state-owned hospitality facility.
Despite the revocation, the government said it had compensated Investment Guarantee Limited for costs incurred during its stewardship of the property, describing the move as part of its commitment to fairness even in enforcing accountability.
The development has renewed conversations around the long-term leasing of public assets in Abia State, with stakeholders urging a more diligent approach to monitoring private partners tasked with managing government-owned facilities.
