The Federal Government has unveiled a new Public-Private Partnership (PPP) framework aimed at accelerating the delivery of infrastructure projects and addressing Nigeria’s estimated $2.3 trillion infrastructure deficit.
The new model agreement, developed by the Infrastructure Concession Regulatory Commission (ICRC), is expected to serve as a standard contractual template for federal PPP projects, helping to reduce delays, lower transaction costs and improve investor confidence.
Speaking at a stakeholders’ engagement session on the “Nigeria Model: PPP Arrangement” in Abuja, the Director-General of the ICRC, Dr. Jobson Ewalefoh, said Nigeria requires annual infrastructure investments of about $100 billion over the next 16 years to bridge the country’s infrastructure gap by 2043.
According to him, government resources alone are insufficient to meet the country’s growing infrastructure needs, making private sector participation essential for the development of roads, railways, power facilities, healthcare infrastructure, water systems and digital networks.
“The reality is that no government budget can finance the scale of infrastructure required by a country of Nigeria’s size. Public-private partnerships are therefore central to achieving our development objectives,” Ewalefoh said.
He described the newly introduced PPP agreement as a major reform designed to create a consistent contractual framework across ministries, departments and agencies (MDAs), replacing the practice of negotiating agreements from scratch for every project.
According to the ICRC boss, the lack of standardised agreements has historically prolonged concession processes, increased uncertainty for investors and heightened the risk of disputes.
Ewalefoh disclosed that the framework was developed over a two-year period through extensive consultations with legal experts, transaction advisers, development partners, lenders and government institutions.
He added that the Federal Ministry of Justice played a critical role in reviewing the document to ensure compliance with Nigerian laws and constitutional requirements.
The model agreement provides a standard reference point for PPP transactions while allowing flexibility for project-specific and sector-specific adjustments.
Among its key features are detailed provisions on risk allocation, lender protections, force majeure events, changes in law, insurance obligations, dispute resolution mechanisms and termination compensation.
The framework also introduces direct agreements that grant lenders step-in rights when projects face distress, enabling financiers to intervene before project termination becomes necessary.
Industry stakeholders consider such provisions essential for attracting long-term infrastructure financing and improving project bankability.
Ewalefoh explained that the dispute resolution process prioritises consultation and negotiation among parties before escalating matters to confidential intervention by the ICRC and, where necessary, arbitration under the Arbitration and Mediation Act 2023.
The framework further incorporates performance monitoring and contract management systems, including key performance indicators, reporting obligations, audit rights and periodic project reviews.
According to the ICRC Director-General, standardising PPP contracts is expected to significantly reduce negotiation timelines and strengthen Nigeria’s appeal to both domestic and international investors.
He linked the initiative to broader government efforts aimed at attracting long-term infrastructure capital, particularly following Nigeria’s removal from the Financial Action Task Force (FATF) grey list.
Ewalefoh noted that stronger contractual standards would help unlock funding from pension funds, Sukuk issuances, green bonds and other alternative financing instruments that rely on predictable legal and commercial frameworks.
He urged ministries, departments and agencies to familiarise themselves with the agreement, engage qualified legal and financial advisers and submit modified versions of project agreements to the ICRC for statutory review.
Describing the framework as a “living document,” he said it would continue to evolve in response to lessons learned from future projects, legal developments and emerging international best practices.
Also speaking at the event, former ICRC Director-General, Mike Ohiani, said the absence of standardised PPP documentation had contributed to project delays, higher transaction costs and reduced investor confidence in some infrastructure concessions.
The Solicitor-General of the Federation, Beatrice Jedy-Agba, stated that the review process has strengthened accountability and enhanced the legal framework governing infrastructure partnerships.
She noted that the Federal Ministry of Justice is playing a more active role in debt risk assessment, contract scrutiny and the development of dispute resolution mechanisms to safeguard public interests and ensure effective project implementation.
The Federal Government expects the new PPP framework to become the baseline contractual document for future federal infrastructure projects, supporting efforts to leverage private sector investment in addressing Nigeria’s infrastructure challenges and driving long-term economic growth.
