President Bola Tinubu has approved a new decentralized framework for public-private partnership (PPP) projects. Under this new system, parastatals can internally approve projects valued under N10 billion, and ministries can do the same for projects up to N20 billion.
These approvals will be managed by project approval boards (PABs) and must adhere to the guidelines and certifications set by the Infrastructure Concession Regulatory Commission (ICRC).
On Sunday in Abuja, Jobson Ewalefoh, the director-general of the ICRC, revealed the presidential directive, calling it a transformative development for Nigeria’s infrastructure landscape.
“Only projects exceeding the thresholds or involving multiple MDAs will require FEC approval.
“Importantly, all such projects must be entirely privately funded, with no government guarantees or financial commitments from the treasury.
“Notwithstanding the new thresholds, every PPP project must be submitted to the ICRC for review and certification. The ICRC must issue certificates of compliance before any PPP project can be approved by the PAB and other approving bodies.
With this framework, we expect private sector-led investments in projects like rural diagnostic centres, school blocks, student hostels, and affordable housing to be delivered faster, with less bureaucracy.
“This approval is a game-changer, especially for sectors like health, education, agriculture, and housing.
“We expect to see private sector-led investments in projects like rural diagnostic medical centers, construction of classroom blocks, student hostel and delivery of affordable housing schemes across the country—with less bureaucratic requirements under the new adopted process.
“By decentralising approvals, the government is supporting and unlocking investment opportunities through improved capital inflows, job creation, and faster project delivery—exactly what we need in this current economic climate.”