The federal government has unveiled a model Public-Private Partnership (PPP) agreement aimed at fast-tracking infrastructure development, streamlining project negotiations, and attracting greater private sector investment into key sectors of the economy.
The framework is expected to enhance Nigeria’s ability to attract private capital and address the country’s estimated $2.3 trillion infrastructure deficit.
Speaking at a one-day stakeholder engagement on the Model PPP Agreement in Abuja on Tuesday, the Director-General of the Infrastructure Concession Regulatory Commission (ICRC), Jobson Ewalefoh, said the initiative would provide a standardised structure for PPP transactions across the country.
According to him, Nigeria needs about $100 billion annually to close its infrastructure gap by 2043, a target that cannot be achieved through public funding alone.
Ewalefoh said the scale of the country’s infrastructure needs makes private sector participation indispensable to achieving the development goals of President Bola Tinubu’s administration.
“The pertinent question is this: if PPPs must carry this national weight, what will sustain the PPPs themselves?
“This is the gap the ICRC has spent nearly two years closing through the Model PPP Agreement we gather here today to unveil and examine,” he said.
The ICRC boss noted that despite the enactment of the ICRC Act in 2005, PPP arrangements in Nigeria had largely been negotiated individually by ministries, departments and agencies (MDAs), resulting in varying standards and approaches.
He explained that the absence of a common framework often created inconsistencies in areas such as risk allocation and dispute resolution, leaving investors uncertain and exposing the country to avoidable challenges.
According to him, the lack of standardisation frequently prolonged negotiations, increased transaction costs, generated disputes and discouraged lenders from committing long-term financing to infrastructure projects.
Ewalefoh said the model agreement was developed following extensive consultations with legal and financial experts, transaction advisers, PPP practitioners, investors, lenders and government institutions.
He added that the document was benchmarked against global best practices while being tailored to Nigeria’s legal and regulatory environment.
He stressed that the agreement was not intended to replace project-specific arrangements or professional advisory services but to serve as a dependable foundation that would enable MDAs to negotiate transactions more efficiently and with greater certainty.
The framework, he said, covers key areas including risk allocation, insurance, force majeure, changes in law, lender protections, dispute resolution, performance monitoring and anti-corruption measures.
Ewalefoh further explained that disagreements arising from PPP projects would be addressed through a structured process involving consultation, negotiation, possible intervention by the ICRC and, where necessary, arbitration in line with the Arbitration and Mediation Act, 2023.
He added that provisions on contract management, reporting obligations and performance monitoring were incorporated to ensure accountability throughout the lifespan of concession agreements.
“The philosophy behind this agreement is simple: predictability for the government, protection for investors and performance for the Nigerian public,” he said.
According to him, the framework will help MDAs shorten the period between project conception and financial close, minimise disputes through clearer contractual terms and ensure greater compliance with statutory approval processes.
He encouraged government agencies to carefully study the agreement, adapt it to their sector-specific requirements and submit any modified versions to the ICRC for statutory review.
Ewalefoh also commended the Federal Ministry of Justice for its contribution to the development of the framework, noting that ministry officials worked closely with the commission’s drafting team to ensure consistency with the Constitution and other relevant laws.
He said the ministry’s input strengthened provisions relating to dispute resolution, arbitration, indemnity, liability, force majeure and contract termination.
The ICRC chief added that the agreement would facilitate access to alternative sources of infrastructure financing, including pension funds, Sukuk, green bonds and blended finance instruments.
He expressed confidence that the framework would contribute to building a more transparent, disciplined and investor-friendly PPP ecosystem capable of supporting Nigeria’s long-term development aspirations.
Ewalefoh further stated that sustained collaboration among the ICRC, MDAs, development partners and private investors would play a crucial role in bridging the country’s infrastructure gap and delivering projects that align with the objectives of the Renewed Hope Agenda.
The stakeholder engagement was attended by representatives of MDAs, development partners, legal practitioners, financial experts and private-sector investors.
