Abia revokes contract with Investment Guarantee, re-acquires Abia Hotels, Umuahia

Abia State Government has announced the re-acquisition of Abia Hotels, Umuahia, after the revocation of the Certificate of Occupancy issued to Investment Guarantee Limited, a firm that has been managing the hotel since 2013.

The Abia State Government, in a statement signed by Ukoha Njoku Ukoha, chief press secretary to the State Governor, stated that the action became necessary after Investment Guarantee Limited failed to meet the terms of the Development Lease Agreement, which required the company to upgrade and redevelop Abia Hotels into a 3-Star Protea-standard facility within the agreed timeframe.

“Twelve years after the agreement was signed, the company reportedly failed to carry out the required redevelopment and was also in breach of other contractual obligations”.

Despite the breach, the Abia State Government stated that, in line with its investment-friendly stance, it offered and paid compensation to Investment Guarantee Limited, to cover the costs the company incurred.

This measure, the government said, was taken to support the investor, while enabling the State to reposition the hotel for its intended public use.

Reaffirming its commitment to fostering a conducive business environment, the Abia State Government emphasised that State-owned assets must be utilised effectively and in the best interest of citizens.