Challenges in implementing PPP strategy for infrastructure delivery in Nigeria

Babatunde, Solomon, Perera, Srinath, Udeaja, Chika and Zhou, Lei (2013) Challenges in implementing PPP strategy for infrastructure delivery in Nigeria. In: Public Private Partnership (PPP) Body of Knowledge (3P Book) International Conference, 18th March 2013, Preston.

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Abstract

The Nigerian government’s efforts at engaging the private sector in the massive infrastructure development necessary to meet its goal of being one of the best 20 economies in the world by 2020. However, using PPP for infrastructure delivery in Nigeria is becoming a problem. The purpose of this research is to identify key challenges in implementing PPP in Nigeria with a view to suggesting strategies to address the challenges confronting PPP infrastructural projects in Nigeria. The research adopted case studies on two PPP infrastructural projects viz; the concession of Murtala Mohammed Airport Terminal 2, Lagos and the concession of 105 KM Lagos –Ibadan expressway. The research reviews documentary reports, project documents, among others to identify the sequence of events as to the project unfold and to describe the process of project conception and delivery. The research identified eight main challenges confronting PPP infrastructural deliveries in Nigeria, this includes, inadequate knowledge, skills and capacity by participants both in public and the private sectors; poor evaluation, monitoring and due diligence by government; non-competitive bidding; signing of contract with no design and evidence of financing; difficulty in accessing credit facility from banks both locally and internationally; land acquisition problem; failure of risk allocations between the government and the concessionaire; and politicization of the concessions. The research study suggested strategies such as, development of an innovate financing model for PPP projects, organize continuous trainings, workshops and conferences for public sector employees, and public enlightenment by stakeholders at very early stage of PPP cycle. These strategies are highly imperative to address the key identified challenges facing the PPP implementation in Nigeria with a view to enhancing PPP infrastructural projects.

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