ICRC

At the recent PPP International Study Tour in Kigali, Rwanda, I had the opportunity to share insights on Nigeria’s Public-Private Partnership (PPP) framework, its institutional processes, and the principles that must guide the successful delivery of infrastructure through public-private collaboration. One point remains fundamental to how we must approach PPPs: the objective is not simply to build assets, but to deliver services that work, create value, and stand the test of time. PPPs provide an important pathway by combining public-sector objectives with private-sector investment, innovation, technical expertise, and operational efficiency. However, a successful PPP does not happen simply because government has signed an agreement with a private company. It requires deliberate planning, sound project preparation, transparent procurement, appropriate risk allocation, and a clear commitment to performance. There are several principles we cannot afford to compromise: 1. Bankability and affordability must go hand in hand. Good ideas alone do not attract financing. Projects must have credible business models, robust cash flows, realistic returns, and financial structures that can withstand scrutiny. At the same time, they must remain affordable and deliver value for the public. 2. Risk must be allocated to the party best able to manage it. The strength of a PPP lies in a well-structured partnership where responsibilities are clearly defined and each party is incentivised to perform. Transferring risk without considering the capacity to manage it does not create efficiency; it creates avoidable problems. 3. We must move beyond constructing assets to procuring services. Traditional public procurement often focuses on building infrastructure. A well-structured PPP looks at the entire lifecycle: design, construction, operation, maintenance, and service quality. The real measure of success is not merely whether an asset has been completed, but whether it continues to serve the people effectively. My message in Kigali was clear: a strong PPP framework must connect the interests of government, the capabilities of the private sector, and the needs of the people. When these interests are properly aligned, PPPs can help bridge infrastructure gaps, accelerate project delivery, improve service quality, and make better use of available resources. That is the standard we must continue to pursue as we strengthen PPP practice in Nigeria and across Africa.

Speaking as a panelist at the 32nd Nigerian Economic Summit yesterday, I established the importance of the law in PPP aggremrnts and emphasised that we must be careful not to rush to blame the law every time we encounter challenges in delivering Public-Private Partnership (PPP) infrastructure. The question we must first ask is: How effectively have we used the laws, provisions, and clauses already available to us to create the solutions we seek? Over the last two years, the Infrastructure Concession Regulatory Commission (ICRC) has issued 13 guidelines to strengthen the implementation of its mandate and provide clearer direction for investors and Ministries, Departments, and Agencies (MDAs) in developing sustainable PPP projects. However, laws and guidelines alone cannot guarantee success. They provide the framework, but the character, competence, and commitment of the people responsible for implementing them ultimately matter. When agreements are not carefully interpreted or their provisions are not fully applied, issues that could have been prevented can escalate into disputes, delays, and stalled infrastructure projects

ICRC and THE NEW STANDARD FOR PPP AGREEMENT in Nigeria For almost two decades, Public-Private Partnership transactions in Nigeria have largely been negotiated on a project-by-project basis. While every infrastructure project is unique, repeatedly starting from scratch creates unnecessary uncertainty, prolonged negotiations and, in some cases, inconsistent approaches to risk allocation. These challenges necessitated the creation of the Model PPP Agreement, designed to make PPP transactions clearer, more predictable and more efficient for both government and investors. The Model Agreement provides a dependable starting point for Ministries, Departments and Agencies (MDAs) and private investors as they negotiate PPP contracts. Two very important factors at the heart of the framework are • Risk allocation; which submits that more risk should be allocated to the party best positioned to manage it and • Dispute resolution; explaining that the framework promotes a graduated approach, beginning with consultation and negotiation, with ICRC intervention where necessary, and ultimately arbitration in Abuja under the Arbitration and Mediation Act 2023. Importantly, this is not a one-size-fits-all contract! Every PPP project has its own commercial, technical and operational realities. The Model Agreement provides a strong and legally grounded foundation from which specific transactions can be developed and negotiated. At ICRC, we are not simply developing agreements. We are building the systems and processes that make infrastructure investment easier to understand, easier to negotiate and easier to finance. The Model PPP Agreement is an important step in that direction. It fosters clearer rules, better risk allocation, faster negotiations, stronger partnerships and more infrastructure.