Lack of capacity in MDAs hindering PPP drive, says Udo Udoma

The Federal Government has condemned a lack of capacity among most staff members of Ministries, Departments and Agencies (MDAs), saying the development hinders the effective take-off and sustenance of Public Private Partnership (PPP) needed to end economic recession.

The Minister of Budget and National Planning, Senator Udoma Udo Udoma made the condemnation yesterday in Abuja at a seminar by the ministry and the Infrastructure Bank on improved private sector investment in infrastructure and capacity building in MDAs.

Udoma, who was represented by the ministry’s Director of Administration, Mr. Christ Ezeilo, argued that laudable projects should be prepared for public consideration, in order to attract private investment, saying, however, that it requires time, money and technical know-how.

“To get this right, it means that MDAs must have officers that possess adequate knowledge and skill sets in different areas of PPP competencies, including feasibility studies, financial restructuring, procurement, contractual agreements, and environmental impact assessment,” Udoma said.

He added that the National Integrated Infrastructure Master Plan (NIIMP) recognised the critical role of the private sector in the financing and delivery of priority projects of $166 billion for the first five years, out of which 48 per cent of this amount is expected to be provided by the private sector.

The Managing Director of The Infrastructure Bank, Mr. Adekunle Oyinloye said that investment in capital infrastructure and public utilities were a reliable tool for ending the economic recession.

He stated that NIIMP stipulated that Nigeria would need an average of $25 billion per annum for the next five years to sustain a robust economic growth.

According to Oyinloye, the private sector remains willing to work with the government in strategic ways to fund the infrastructure deficit through skillful transaction structuring that comprehensively addressed the project risks faced by promoters, as well as assuring the return on capital invested.