Will a General Buhari Led Federal Government embrace PPPs?

Given estimates of over 20billion US dollars annual financing requirement for infrastructure in Nigeria for the next 20 years, the dwindling oil prizes and poor growth prospect for other sources of national revenues in the next three to four years, increasing population and pressure on existing infrastructure, rising but yet manageable debt, and process integrity challenges  faced by PPPs and indeed any kind of procurement in the public sphere. Do you think that A General Buhari Led Federal Government will embrace PPPs as a route to meeting infrastructure financing needs? I think it is a risk worth taking. Do you agree?

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3 thoughts on “Will a General Buhari Led Federal Government embrace PPPs?

  1. Yes, I think so to a certain extent. The new government will embrace the existing PPP structures and projects because the benefits of PPP is being realized through the various infrastructural projects that were financed through PPP, MMA2 Lagos is a classic example. Further no matter what government is in power, the days of 100% government financing of public utilities or projects a long gone. With the fall in Oil price and derived revenue from crude oil sales, the government will look towards private sector investors to form some type of PPP arrangement where a common pool of resource and capital investment will provide backing to the government to engage in continual infrastructural and economic development. This will ensure that public debts are kept low at least, public facilities are constructed and maintained, goods and services provided.
    But sitting on the fence a bit, I think that the new government will first focus on ensuring that the government lives up to its responsibilities in providing the much needed goods and services from the existing capital that can be raised from oil revenues and other forms of export. It is common knowledge that a huge percentage of the revenue falls into the hands of a few via corrupt acts and practices as the government has ceased to be accountable to the people. If the Rtd Gen. Buhari led administration focuses on changing this trend then in spite of the merits of PPP, projects such as road rehabilitation or construction are basic infrastructural projects that can be managed from the government coffers rather than being subject to a PPP arrangement. For instance the ICRC list the rehabilitation and upgrade of the Murtala Muhammed Airport Road, a Fed ministry of Works project as one that will benefit from a PPP model of Build, operate and transfer (BOT). This is the 2.8km dual carriage Apakun – Murtala Muhammed Airport (MMA) road which is to be expanded from its present width of 4 lanes to 8 lanes with 2.75m shoulders on either side, including vehicular bridges and pedestrian bridges at appropriate locations.
    This is a major road giving the first impression to tourists and other forms of air travelers who come into the country via the Murtala Muhammed International Airport what Nigeria stands for. At least the government can from the stand point of tourism, international relations and an avenue to attract foreign investors be able to fund the construction and maintenance of such a major road without private sector funds just as other governments around the world ensure that the link road to their major International Airports give a good impression about their country.

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  2. US $20Billion annual financing requirement for infrastructure over a period of 20 years is some staggering amount for infrastructural development,yet the infrastructural decay has to be tackled.As captured,there are huge but surmountable challenges in the quest to bridge the huge infrastructural deficits in our country.Even though ,i have not read the APC Manifesto but i am aware that some APC controlled states have delivered some of their infrastructural campaign promises by adopting the PPP model,Lagos State easily comes to mind.As at today,not less than 24 State Governments are in arrears of at least between 4-7 months salary to civil servants,not to talk of pensioners and other outstanding recurrent balances.The fallout of this scenario is that Government at all levels are out of funds to meet infrastructural requirements in the face of huge expectations,highly improved citizen groups enlightenment and engagements in the governance process,huge turn out of high school leavers and graduates leading to urban migration and stretching of existing infrastructure.
    Mr President-Elect,General Buhari while campaigning assured of a massive infrastructural revolution.Can he afford to renege and fail on this promise?,certainly a capital NO is the answer.Hence,with these challenges,how does he cope with the financing component of infrastructural development?. This is where the PPP option takes centre stage.There is no gain saying that globally ,states are embracing the PPP model as the route to infrastructural development.Government cannot do it,given the massive financial involvements and integrity issues surrounding Government’s involvements in procurement activities. So,with a sound PPP regulatory framework,the only way for the incoming administration is the PPP model,so far as it is suited in a manner that will not foist untold hardship on the end-users,beneficiaries ,host communities and other stakeholders.
    On the process integrity challenges,i know that the President-Elect won the hearts of majority of the electorate due to his public perception as “Mr. Integrity”. His key campaign mantra was the Anti-Corruption fight.It is hoped that these institutional integrity issues will be tackled headlong by the Buhari Government. Once tackled,Mr.President ought to embrace PPPs as the way out to meeting the financing requirements of his massive infrastructural revolution campaign promise.Indeed,it is not just a risk worth taking but very viable,laudable and comparatively ahead than any forms of loans,grants,aids etc.

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  3. Lagos state especially, which is an APC government is making good progress in developing the state in some key areas including infrastructure by embracing the PPP model.The economic benefits are significant.I am sure that a GMB led government in-the-making is taking notice and will certainly use this model even if with modifications in its approach to developing a new Nigeria.And this I believe will be to his credit in light of dwindling oil revenues.

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