Aduragbemi Omiyale
By Aduragbemi Omiyale
Nigeria is one country that has a massive infrastructural deficit and to bridge this gap, investors must be brought, but they will only be attracted if the ground is good.
According to the Nigerian Integrated Infrastructure Masterplan (NIIMP) and Economic Recovery and Growth Plan (ERGP) 2017-2020, Nigeria would require the sum of $3 trillion over the next 30 years to bridge the gap.
The federal government is aware of this fact and it is doing everything possible to stimulate the interests of both local and foreign investors in the nation’s infrastructure market by coming up with a comprehensive public-private partnership (PPP) framework that will map out institutional responsibilities and others.
“The federal government took the significant step towards addressing this through a policy pronouncement in the form of circular number SGF .50/S.37/II/749) dated September 14, 2020.
“The circular provides the much-needed clarity on federal government institutional roles for PPP arrangements,” the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said at a webinar held recently on financing PPP to boost infrastructure delivery in Nigeria.
The Minister explained that the circular stated that the Bureau of Public Enterprises (BPE), the federal government agency tasked with implementing the government’s privatisation programme, as the secretariat to the NCP, shall be responsible for the concession of public enterprises and infrastructure already listed in the first and second schedules of the Public Enterprises Act.
The circular equally stipulates that the BPE shall act on behalf of the federal government as the counterparty on all infrastructure projects being developed on a PPP basis while the Infrastructure Concession Regulatory Commission (ICRC) continues to act as the regulatory agency for PPP transactions with powers to inspect, supervise and monitor the projects and processes in order to ensure compliance with relevant laws, policies and regulations.
According to Mrs Ahmed, it is expected that the new policy direction would remove all forms of ambiguity or concerns and, therefore, stimulate investors’ interests in the country’s infrastructure market.
“As you may be aware, there are some other initiatives being taken by the government in the PPPs space such as the ongoing review of the guidelines on viability gap funding, and management of contingent liability that have both reached advanced stages.
“In addition, from the 2021/2022 budget cycle, all infrastructure projects must be screened for PPP suitability and compliance with the National Integrated Infrastructure Master plan by the Federal Ministry of Finance Budget and National Planning and BPE before inclusion in the national budget and subsequent procurement.”
“[These efforts] are to ensure that PPP takes a centre stage in the procurement of infrastructure in Nigeria. The government is ready and willing to dialogue and incorporate valuable suggestions from stakeholders with a view to further strengthening Nigeria’s PPP framework,” she said.
Mrs Ahmed said the administration of President Muhammadu Buhari has worked tirelessly to bridge the deficit, being aware that it was hampering economic growth.
