Abia State revokes C of O and reclaims Abia Hotels over breach of development agreement, compensates lessee, and reaffirms commitment to investor-friendly policies.
The Abia State Government has officially revoked the Certificate of Occupancy (C of O) and taken full possession of Abia Hotels, Umuahia, after Investment Guarantee Limited the company leasing the facility failed to meet the terms of its 2013 Development Lease Agreement.
According to the government, the lessee had committed to upgrading and transforming the hotel into a modern 3-Star Protea-standard facility, to be managed for a 25-year lease period. Twelve years after signing the agreement, the company reportedly failed to redevelop the hotel to the agreed standard and breached several other key provisions.
In response to the prolonged non-compliance, the Abia State Government exercised its right to terminate the lease and reclaim the state-owned asset. Despite the breaches, the government emphasized its commitment to maintaining an investor-friendly environment. As part of this commitment, compensation was paid to Investment Guarantee Limited to offset costs already incurred in the partial development of the hotel complex.
The government explained that the decision to reclaim Abia Hotels was necessary to ensure that strategic public assets are effectively utilized for the benefit of the people of Abia State. It reaffirmed that its policies remain focused on promoting business growth while safeguarding state resources.
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The announcement was made by Ctz. Ukoha Njoku Ukoha, Chief Press Secretary to the Governor of Abia State, on November 16, 2025.
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