•Eyes $100b consistent yearly spending till 2043 to bridge gap

The Federal Government has unveiled a new template to guide the delivery of public infrastructure estimated at $2.3 trillion (N3.15 quadrillion) under a public-private partnership (PPP) programme.

The Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Dr Jobson Ewalefoh, at the unveiling of the new template, said the shortfall could be better addressed through a PPP model.

Ewalefoh said the gap could only be effectively addressed through consistent yearly spending of $100 billion over 16 years.

He admitted that the government alone could not provide the needed resources.

Hence, he said a new PPP model agreement developed by the Federal Government would accelerate infrastructure development, reduce transaction delays and improve investor confidence in Nigeria’s concession programme.

The new framework was presented yesterday in Abuja at a stakeholders’ engagement session on the ‘Nigeria model: PPP Arrangement’.

Ewalefoh described the agreement as a major reform designed to establish a consistent contractual framework for PPP projects across ministries, departments and agencies (MDAs) of the Federal Government.

He said the initiative was developed to address long-standing challenges associated with project-by-project negotiations that often prolong concession processes, create uncertainty for investors and increase the risk of disputes.

According to Ewalefoh, Nigeria currently faces an infrastructure deficit estimated at $2.3 trillion and requires yearly investments of about $100 billion to bridge the gap by 2043.

He noted that government resources alone would be insufficient to meet the country’s infrastructure financing needs, making private sector participation critical to the delivery of roads, railways, power infrastructure, healthcare facilities, water systems and digital infrastructure.

“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,” he said.

The ICRC boss explained that the Model PPP Agreement was developed over two years through consultations with legal experts, transaction advisers, development partners, lenders and government agencies. The Federal Ministry of Justice also played a key role in reviewing and strengthening the document to ensure compliance with Nigerian laws and constitutional provisions.

He said the agreement established a standard reference point for PPP transactions, while allowing sufficient flexibility for sector-specific and project-specific adjustments.

Among its key provisions are detailed frameworks for risk allocation, lender protections, dispute resolution, force majeure, changes in law, insurance obligations and termination compensation.

The template also introduces direct agreements that grant lenders step-in rights in distressed projects before termination becomes necessary, a feature widely regarded as essential for securing long-term infrastructure financing.

Ewalefoh said the dispute resolution mechanism prioritises consultation and negotiation, followed by confidential intervention by the ICRC where necessary, before arbitration under the Arbitration and Mediation Act 2023.

He added that the framework incorporates contract management and performance monitoring mechanisms, including key performance indicators, reporting requirements, audit rights and periodic project reviews.

According to him, the standardisation of PPP contracts is expected to shorten negotiation timelines, lower transaction costs and improve the bankability of infrastructure projects.
He said the framework would also strengthen Nigeria’s attractiveness to domestic and international investors by providing greater certainty in contractual arrangements and project governance.

The ICRC chief linked the initiative to ongoing efforts to attract long-term infrastructure capital following Nigeria’s removal from the Financial Action Task Force (FATF) grey list.

He argued that stronger contractual standards would help unlock funding from pension funds, Sukuk issuances, green bonds and other alternative financing sources that depend on predictable legal and commercial frameworks.

Ewalefoh urged MDAs to study the agreement carefully, engage competent legal and financial advisers when adapting it to specific projects and submit all modified agreements to the ICRC for statutory review.

He described the Model PPP Agreement as a living document that would continue to evolve in response to lessons from future projects, legal developments and emerging international best practices.

The immediate past Director-General of ICRC, Mike Ohiani, in his remarks, said the absence of standardised PPP documentation had contributed to delays, increased negotiation costs and weakened investor confidence in some transactions.

The Solicitor-General of the Federation, Beatrice Jedy-Agba, disclosed that the review exercises have resulted in clearer, stronger, and more effective accountability for the public of non-TLPP infrastructure policies.

She highlighted that the Federal Ministry of Justice is now more involved in mitigating, scrutinising the debt and structuring robust risk resolution mechanisms to ensure that the federal government litigation solves defaults and loss allocation.

The new framework is expected to serve as the baseline contractual document for future federal PPP projects, supporting the government’s broader strategy of leveraging private sector investment to address Nigeria’s infrastructure deficit.