PPP Investments Crucial to Avert Nigeria’s Infrastructure Cr

Engineers have warned that Nigeria risks a deeper crisis if it fails to close its infrastructure gap through strategic Public-Private Partnership investments.

In an interview with The Punch, the treasurer of the Nigerian Society of Engineers, Victoria Island Branch, Babatunji Adegoke, stated that if Nigeria fails to leverage Public-Private Partnerships to address its infrastructure gaps, the consequences can be far-reaching.

He said, “Nigeria will experience a persistent infrastructure deficit, with facilities falling short of the needs of a growing population, thereby undermining national growth, productivity, and competitiveness. Government finances will be overstretched, forcing heavy reliance on loans to finance critical projects, a situation that risks placing public finances in jeopardy and diverting resources from other essential sectors.

He added, “The economy’s productivity will also be constrained because infrastructure forms the backbone of economic development, creating jobs and enabling industries to thrive. Without adequate infrastructure, job opportunities along the value chain of Nigeria’s natural resources will be limited, and the country’s economic potential will remain underutilised.

He continued, “Furthermore, the absence of reliable and modern infrastructure will discourage foreign direct investment, as investors naturally gravitate toward countries with dependable transport, power, and communication systems. This gap will also hinder the optimal use of Nigeria’s mineral and natural resources, as high production costs caused by inefficient infrastructure will make locally produced goods less competitive in global markets. The education sector will suffer as well, with the lack of conducive learning environments, such as well-equipped classrooms, laboratories, digital infrastructure and students’ accommodation, adversely affecting the quality of education and weakening human capital development.

Adegoke concluded, “Finally, poor road networks and inadequate transport systems will make the movement of goods and people difficult and unsafe, raising logistics costs, slowing trade, and posing serious safety risks. In essence, neglecting to adopt PPP strategies not only limits Nigeria’s infrastructure development but also curtails its economic growth, social development, and global competitiveness.”

According to him, Public-Private Partnerships are gaining traction across Africa, largely due to the fiscal limitations of many governments and the inadequacy of traditional funding models to meet the continent’s vast infrastructure demands.

He submitted further, “With dwindling public resources and insufficient innovation in revenue generation, PPPs provide a viable alternative to bridge the infrastructure financing gap. However, it is important to emphasise that not all projects are suitable for PPP. Careful screening and the development of a robust project pipeline are essential to ensure investor confidence and sustainable outcomes. PPPs can play a transformative role in unlocking Africa’s latent potential. For instance, the continent is rich in mineral resources such as lithium and cobalt, gold, diamonds and crude oil, which are in high global demand. However, to effectively harness these resources, Africa needs to invest in large-scale infrastructure, processing plants, power generation facilities, and transportation networks. PPPs offer a means to deliver these critical assets efficiently and innovatively.

“Despite their potential, several barriers continue to limit the widespread adoption of PPPs in Africa. This includes limited PPP expertise and skills gaps among professionals, resistance to change from traditional procurement methods, public scepticism, often fuelled by the failure of past PPP projects, the misconception that infrastructure provision is solely a government responsibility and inadequate advocacy to communicate the benefits and value of PPPs.

“To address these challenges, Africa must prioritise the training of professionals interested in PPPs and encourage structured knowledge transfer from experienced practitioners. Beyond that, continuous advocacy, both within government institutions and to the public, is crucial. African nations must also develop bespoke PPP frameworks tailored to local socio-economic contexts. While global case studies from Europe or America offer valuable insights, Africa’s PPP ecosystem must be designed by Africans, for Africans.”

The former Registrar of the Council for the Regulation of Engineering in Nigeria, Dr Felix Atume, noted that despite the recognised potential of Public-Private Partnerships to bridge Nigeria’s vast infrastructure deficit, particularly in the road sector, several critical barriers have undermined their effectiveness.

He said, “A review of Nigeria’s experience shows the following major challenges:Nigeria’s legal environment for PPP remains underdeveloped and fragmented. Although the Infrastructure Concession Regulatory Commission Act of 2005 provides a foundation, it is not sufficiently robust to support complex and long-term PPP arrangements.

“There is a lack of harmonised and comprehensive PPP legislation at federal, state, and local government levels. Uncertainties in laws governing concessions, land rights, and dispute resolution make enforcement difficult. The legal uncertainty discourages private investors who require predictable and enforceable frameworks to safeguard their investments.

“The Nigerian PPP institutional architecture suffers from weak coordination and excessive bureaucracy, and the problems are overlapping responsibilities among government agencies, protracted approval processes, and inadequate technical expertise to design, evaluate, and manage PPP contracts’ impact. These factors lead to significant delays, increased transaction costs, and investors’ disinterest.

“In addition, frequent political changes and weak governance structures result in disruptions of existing PPP contracts, creating a high-risk environment for private investors. Premature termination of concession agreements and politicisation of project decisions undermine investor confidence. Investors face heightened political risks, which often result in demands for higher returns to compensate for uncertainty.”

_{Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.}