Key Projects of Nigeria

Development of Katampe project

The Katampe District Project served as the pilot for the accelerated development of urban districts across the Federal Capital Territory (FCT) and was operated by the FCT Administration in partnership with Deanshanger Project Ltd. The project involved the provision of integrated civil infrastructure and the development of 777 hectares of land within the district. The project cost N61 billion and used the build–operate–transfer model of PPP.

The Lagos Urban Transport Project

The Lagos Urban Transport Project is a public–private partnership that was approved in 2010, receiving its funding from the Nigerian Government and the International Development Association. Its goal is to improve the transport sector in the Lagos metropolitan area and improve the efficiency of the public transport network. Evidence since the beginning of the project shows that significant impact is being made, with 220,000 passengers using buses daily. More than 500,000 jobs have been created as a result of the project.

Private Sector Health Alliance of Nigeria

Created by a coalition of private sector business leaders and the corporate community, and launched by Bill Gates, the Private Sector Health Alliance of Nigeria (PHN) was created to function as a platform to accelerate Nigeria’s progress in achieving three of the Millennium Development. In partnership with UNICEF, PHN has assembled 20 public and private sector bodies to launch the Nutrition Market Shaping Private Sector Engagement in Nigeria. The aim of the initiative is to mobilise the private sector so that by 2016 Nigeria will have local ready to use therapeutic foods producers that meet standards of international quality.

Each state in Nigeria is responsible for its own investment projects, although many state projects are financed with the support of a guarantee by the government.

Public-Private Partnerships

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.