Nigeria Govt attracts $10.5bn PPP investment

The Nigeria Governors’ Forum (NGF) has disclosed that the country has attracted $10.5 billion worth of Public-Private-Partnership investments into the country since 2000, going by available World Bank records. This was as the body signed a Memorandum of Understanding with the Acting Director General of the Infrastructure Concession Regulatory Commission (ICRC), Chidi Izuwa to boost PPP projects at the state level.

The bulk of the investments, according to NGF, have been in ports infrastructure ($7.2 billion), followed by the electricity subsector ($1.9 billion) and natural gas ($679 million). Director-General of NGF, Asishana Okauru, who made the disclosure in Abuja on Thursday at the 2018 Nigeria PPP Network (NPPPN), organised by the NGF and ICRC, however regretted that the investments have not spread evenly across the states. He expressed hopes that the event will provide a robust platform for States to better understand the mechanics and importance of setting up appropriate PPP systems that will make their business environment competitive and attractive to private sector infrastructure investments.

“We must also be ready to learn from the implementation challenges of PPP projects in other countries. “At the local level, States have faced several challenges in the implementation of PPP projects. Addressing these challenges would require a suite of solutions.

“Although a number of States are working to establish PPPs, our records show that only 15 States have established PPP laws to guide the funding model for public infrastructure projects and only about 11 States have PPP offices. “This has had serious implications on the flow of private capital and expertise, and the sustainability of private sector investment across States”, he explained.

Okauru, however, recommended closer collaboration between ICRC and the PPP Network to support States in setting up PPP laws and regulatory agencies that will be responsible for overseeing PPP arrangements at the sub-national level in addition to guiding government ministries, departments and agencies (MDA) in structuring PPP transactions. Earlier in his remarks, Earlier in his remarks, the Secretary to the Government of the Federation, Boss Mustapha, who was represented by the Director General, General Services of the SGF Office, Yinka Aguda said good PPP framework was vital to boot investors confidence.

“PPPs are key and states should improve initiatives to stimulate regional development and cohesion. “We must refocus our attitudes and work towards promoting the country. Infrastructure renewal should be a national issue and should not add to debt. States must be restructured via PPP model. What FG can’t do doesn’t mean it can’t be done and we should not wait for government always.

“There are lots of projects begging for and you need collaborative efforts within your sphere of influence to upscale infrastructure”, he said. Acting Director General of ICRC, Chidi Izuwa while speaking at the event said investment in infrastructure had a direct impact of boosting the economy. “A developed nation is where the rich use public transportation not where the poor have cars. Transportation infrastructure brings about catalytic economic development. It creates economic corridors and boosts development. Cost of transportation key to competitiveness and that it is why we need to open several transport systems. “One percent increase in infrastructure stock results in one percent growth in GDP”, explained. The SUN

Pix: President Buhari