The Federal Government has directed all Ministries, Departments and Agencies of government to comply with the National Policy on Public Private Partnerships (N4P) of the Infrastructure Concession Regulatory Commission (ICRC) in conducting any form of Public Private Partnership (PPP) arrangement.
In a circular titled “FGN 2025 Budget Call Circular”, issued by the Federal Ministry of Budget and Economic Planning, the government mandated all MDAs to ensure that they align with the provisions of the Infrastructure Concession Regulatory Commission (ICRC) Establishment Act (2005) in the preparation and submission of their respective 2025 budget proposals as it relates to PPPs.
The 2025 Budget Call Circular sets out the requirements and instructions that must be satisfied and followed in the preparation of the 2025 Federal Government of Nigeria (FGN) Budget Proposal.
The directive as contained in section 2 of the circular reads in part: “MDAs are by these guidelines directed to note that the execution of Memoranda of Understanding (MoU), memoranda of Association (MoA) and various contract instruments for PPP arrangements between MDAs and private parties without recourse to the extant provisions of the National Policy on PPPs (N4Ps) nor the ICRC (Establishment Act, 2005) is a clear contravention of the law.
“Consequently, any MDA interested in PPP or concession arrangements must act within the ambit of existing laws and policy listed above and ensure alignment with this guideline.”
Going by the above, all MDAs are compelled to adhere to the Act, Policy, and Regulation of the ICRC in undertaking any form of PPP arranhement.
The ICRC has also reaffirmed its commitment to collaborating with Ministries, Departments, and Agencies (MDAs) to streamline PPP processes and prevent future breaches of the law.
The federal government has urged parties involved in existing agreements to approach the ICRC for regularization to avoid the risk of project cancellations.
The ICRC Act was enacted in 2005 to regulate PPP contracts and promote private sector participation in Nigeria’s infrastructure development. It outlines processes for project conception, procurement, and implementation to safeguard public interest.
As the government tightens its stance on compliance, stakeholders in the PPP ecosystem are advised to prioritize adherence to legal frameworks to mitigate risks and enhance developmental outcomes.