Nigeria unveils unified PPP model to tackle $2.3tr infrastructure gap

Nigeria has unveiled a unified Public-Private Partnership (PPP) model agreement aimed at accelerating infrastructure delivery and bridging the country’s estimated $2.3 trillion infrastructure gap.

The framework, developed by the Infrastructure Concession Regulatory Commission (ICRC), is designed to standardise PPP transactions, reduce negotiation delays, and improve private sector participation in infrastructure development.

Jobson Ewalefoh, Director-General of the ICRC,disclosed this on Tuesday in Abuja at a stakeholder engagement on the new framework, noting that Nigeria requires about $100 billion annually to close its infrastructure deficit by 2043.

He said the model agreement provides a standard structure for PPP transactions, strengthens project preparation, and enhances the mobilisation of private capital into critical infrastructure projects.

Ewalefoh explained that PPP arrangements have historically been structured on a case-by-case basis since the enactment of the ICRC Act in 2005, resulting in inconsistent risk allocation, prolonged negotiations, and investor uncertainty. He added that the absence of a common framework had also increased transaction costs and slowed project execution.

According to him, the new model agreement was developed through extensive consultations with legal and financial experts, transaction advisers, MDAs, investors, and development partners, and benchmarked against international best practices while remaining aligned with Nigerian law.

He stressed that the framework does not replace project-specific structuring, but provides a baseline for negotiations to improve consistency, bankability, and investor confidence.

Key provisions include risk allocation, insurance, force majeure, changes in law, dispute resolution, lender protections, performance monitoring, and anti-corruption safeguards.

Under the framework, disputes will follow a structured escalation process involving consultation, negotiation, intervention by the ICRC where necessary, and arbitration under the Arbitration and Mediation Act, 2023.

Ewalefoh added that the agreement strengthens contract management, reporting obligations, and accountability across concession projects, and is expected to reduce time to financial close while improving compliance and investor confidence.

He urged Ministries, Departments and Agencies (MDAs) to adopt the framework and, where necessary, submit modifications for statutory review.

He also commended the Federal Ministry of Justice for its input in aligning the framework with legal requirements, particularly on indemnity, liability, termination, and arbitration provisions.

The ICRC said the framework is expected to unlock new funding opportunities from pension funds, sukuk issuances, green bonds, and blended finance instruments, while stakeholders at the engagement included MDAs, development partners, legal practitioners, financial experts, and private sector investors.