Nigeria has introduced a unified Public-Private Partnership (PPP) model agreement aimed at attracting private investment and accelerating the delivery of critical infrastructure projects across the country.
The new framework, unveiled by the Infrastructure Concession Regulatory Commission (ICRC) in Abuja, is expected to help address Nigeria’s estimated $2.3 trillion infrastructure deficit while improving the efficiency of project development and execution.
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Speaking at a stakeholder engagement session, ICRC Director-General Jobson Ewalefoh said the country requires about $100 billion annually to close its infrastructure gap by 2043.
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He noted that the model agreement was designed to provide a standard structure for PPP transactions and encourage greater private sector participation.
According to him, PPP projects in Nigeria have largely been negotiated on a case-by-case basis since the enactment of the ICRC Act in 2005.
This approach, he said, often resulted in lengthy negotiations, inconsistent risk-sharing arrangements, higher transaction costs and uncertainty for investors.
The new framework seeks to establish a common baseline for negotiations while allowing flexibility for project-specific requirements.
Ewalefoh explained that the agreement was developed through consultations with government agencies, investors, legal practitioners, financial experts and development partners, and was benchmarked against global best practices.
Key provisions contained in the framework cover risk allocation, insurance obligations, force majeure events, dispute resolution mechanisms, lender protections, contract monitoring and anti-corruption measures.
The agreement also outlines procedures for handling changes in law and project performance obligations.
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Under the arrangement, disputes arising from concession agreements will follow a structured process that includes consultation, negotiation, possible intervention by the ICRC and arbitration in line with the Arbitration and Mediation Act 2023.
The commission believes the framework will strengthen accountability, improve contract management and shorten the time required to achieve financial close on major projects.
Ministries, Departments and Agencies have been encouraged to adopt the model while submitting any required modifications for statutory review.
The ICRC also stated that the framework could unlock additional financing sources, including pension funds, sukuk instruments, green bonds and blended finance facilities, providing new funding options for infrastructure development and supporting long-term economic growth.
