Public-privatepartnership (PPP) is an arrangement between one or more public sector entityand private sector entity for providing a general asset or service over a prolongedperiod, in which the individual sector bears the risks involved and managementresponsibility. According to Infrastructure Concession Regulatory Commission(ICRC), public-private partnership is a form of procurement that requires ajustifiable agreement between a public sector body and a private sector body.Also, public-private partnerships refer to arrangements where the privatesector supplies infrastructure-based assets and infrastructure-based servicesthat traditionally have been provided by the government (Cangiano, Anderson, Alier, Petrie, & Hemming, 2006). The common themesof public-private partnerships (PPPs) are the balance of risk sharing and thefostering of long-term relationships between the public and private sectors(through a mutual agreement). PPP typically involves a private entityfinancing, constructing, or managing a project in return for a promised streamof payments directly from the government or indirectly from users over theprojected life of the project or some other specified period of time (Weimer & Vining, 2004). The features ofpublic-private collaboration include private investment, risk sharing andprovision of services by the private sector; and the types of public-privatepartnership: Build-Operate-Transfer, and Design-Build-Finance-Operate-Transfer.
Overthe last decade or so, financing the private sector through public-privatepartnerships has become a sought-after in the world as a means of procuring andmaintaining public-sector structure, where sub-sectors such as transportation(roads, bridges, railways and airports), social infrastructure (housing,hospitals and public schools), public utilities (waste management and electricitysupply facilities) and other specialized services (such as security equipmentsand communication networks) (Ikpefan, 2009). The Infrastructure ConcessionRegulatory Commission (ICRC) Act 2005 that is responsible for setting forthguidelines to promote, facilitate and ensure Public Private Participation (PPP)projects in Nigeria need to provide value for money for infrastructure servicesso as to enhance economic growth. The government has made a move in the pastfew years in meeting the building blocks. The establishment of institutionssuch as the National Communications Commission (NCC); National ElectricityRegulatory Commission (NERC) Reform Act 2005; National Inland WaterwaysAuthority Act 2004; Federal Highway Act 2004; Federal Environmental RoadMaintenance Agency (FERMA); Toll Road Concession Company (LCC) and others, willenhance more Public-Private Partnership policy investments in theinfrastructural financing in Nigeria (Infrastructure Concession Regulatory Commission (ICRC), 2017).
The Public-PrivateInfrastructure Advisory Facility (PPIAF) a multi-donor technical assistancefacility which was created to help governments in developing countries isexpected to improve the quality of infrastructure through a partnership withthe private sector (Ikpefan, 2009). Nigeria in the last years has givenroom to some PPP Projects, but, the some of the projects have failed to capturethe essence and importance of such projects. The purpose of this study is toassist the ruling government authorities involved the national policy processon public-private partnership (PPP) such as the Infrastructure ConcessionRegulatory Commission (ICRC), Bureau of Public Procurement (BPP); DebtManagement Office (DMO); Bureau of Public Enterprises (BPE); Federal Ministryof Finance (FMF); Office of the Accountant General of the Federation (OAGF); NationalPlanning Commission (NPC); and Ministries, Departments and Agencie (Infrastructure Concession Regulatory Commission (ICRC), 2017). Public-Private Partnership projectsare aimed improving business environment and competitiveness through privatisationand effective public-private partnership with the notion of increasing thelevel of private investment and strengthening the poverty mitigation priorityin the government’s economic management.
Nigeria has a significantinfrastructure deficit which is holding back its development and economicgrowth. To close the gap, it requires more investments beyond the means andcapital base available to the government and the Federal Government believesthat the private sector can play a crucial role in providing some of the newinvestment opportunities through public-private partnership projects (Ikpefan, 2009) However, this is the most appropriateperiod for the Public-Private Partnership (PPP) in the development of Nigeria,and this can take the form of concession, build-own-operate-transfer (BOOT),venture capital, etc. (Ikpefan, 2009)