Public Private Partnerships of Nigeria
The Public Enterprises (Privatisation and Commercialisation) Act 1999 established a legal basis for privatisation and commercialisation in Nigeria and set up the National Council on Privatization (NCP) to determine political, economic and social objectives for the privatisation and commercialisation of public enterprises.
The NCP functions within the Bureau of Public Enterprises holds overall responsibility for implementing Nigerian policy on privatisation and commercialisation provided for by the Act.
Nigeria is open to public–private partnering in fields including leasing, franchising, concessions, equity and joint venture participation. Many states are focusing on facilitating PPP projects, with Lagos State estimating that 70 per cent of its ongoing and planned projects will be in PPP format.
The PPP Initiative Project aims to increase private investment into the PPP infrastructure market and the core infrastructure sectors. The project encompasses capacity-building for ministries, departments and agencies, and technical support for regulatory reform. It also offers support for project preparation and advisory services to develop commercially viable PPP transactions. Infrastructure financing is available for projects via the Viability Gap Facility and financial intermediary loan facility. The project is scheduled to end in 2017.
The Infrastructure Concession Regulatory Commission (ICRC) is Nigeria’s main PPP unit with a key objective to foster investment in the country’s national infrastructure through private sector funding. The ICRC assists the federal government and its ministries and development agencies in implementing and establishing effective PPP processes. Its main objectives include:
- Developing a transparent, efficient and equitable process for managing all aspects of PPP project implementation and monitoring, and applying this process consistently to all relevant projects
- Ensuring the efficient execution of any concession agreements or contracts entered into by the government
- Ensuring compliance with the ICRC Act
The ICRC is also responsible for power generation and transmission/distribution networks, as well as roads and bridges; ports, railways; logistics hubs; gas and petroleum infrastructure; water supply; water treatment and distribution; solid waste management; educational facilities; transport systems; housing and health care facilities.