Liberalisation: FG decentralises PPPs approval

…sets under N20 b Ministry, under N10 b Agency limits

 …Seeks massive private capital 

Emma Ujah, Abuja Bureau Chief 

The Federal Government has decentralised Public-Private Partnerships (PPPs) approval framework in order to fast-track the process of attracting private capital into infrastructure funding. 

A new regulatory framework to this effect has been issued by the Infrastructure Concession Regulatory Commission (ICRC) to govern the new approach to the development and implementation of all PPP projects in the country.

The ICRC, in a statement, today, in Abuja, explained that the new framework was released under the statutory powers of the ICRC Act, 2005, and in compliance with the directive of President Bola Tinubu. 

It said that the framework has been formally unveiled during a high-level stakeholders’ engagement with representatives from all Federal Ministries, Departments, and Agencies (MDAs) directly involved in PPPs.

The guidelines provide directions and requirements to set up the Project Approval Board for the new approval thresholds of under N20bn for Ministries and under N10bn for agencies and parasstatals as approved by the President.

It provides steps for preparing the Outline Business Case (OBC), Full Business Case (FBC) and Financial Model; Guides to the Procurement Routes and  PPP Agreement, among others.

The Director-General of the ICRC, Dr. Jobson Ewalefoh, was said to have presented the guidelines and took stakeholders  through each section to ensure clear understanding.

He was quoted as saying, “The new guidelines are in response to President Bola Ahmed Tinubu’s vision to liberalise the economy and in line with his charge to the ICRC to seek innovative ways to attract private sector finance to build infrastructure through PPPs.

“These rules establish a definitive framework for the conception, development, and execution of PPP projects in Nigeria. They decentralize project approvals to empower MDAs for faster delivery while safeguarding the ICRC’s role as regulator of PPPs in Nigeria.

“Every PPP project — regardless of sector, scale, or origin — must strictly comply with these provisions. Every project shall be subjected to our due diligence and compliance requirements.” 

He re-emphasised the role of the  ICRC as a regulator of PPPs and not an operator or Grantor of projects and informed the participants that the Commission would continually facilitate and coordinate negotiations between MDAs and Private Proponents to ensure that the terms and conditions of agreements are fair to parties and implementable.

The D-G underscored the readiness of the Presidency to delegate greater approval authority to MDAs, with ICRC regulating the process but the heightened accountability and zero tolerance for non-compliance.

The ICRC boss reaffirmed its commitment to collaborate with MDAs, private investors, financiers, and development partners to reposition Nigeria as the continent’s leading destination for PPP projects.

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