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The Federal Government has directed all Ministries, Departments, and Agencies (MDAs) to strictly adhere to the National Policy on Public-Private Partnerships (N4P) and the provisions of the Infrastructure Concession Regulatory Commission (ICRC) Act when entering into Public-Private Partnership (PPP) agreements.
This directive was outlined in a circular titled “FGN 2025 Budget Call Circular”, issued by the Federal Ministry of Budget and Economic Planning. The circular provides a framework for the preparation of the 2025 budget and underscores the critical importance of compliance with existing legal and policy guidelines for PPPs.
According to Section 2 of the circular, MDAs are prohibited from executing Memoranda of Understanding (MoUs), Memoranda of Association (MoAs), or other contractual instruments related to PPPs without fully aligning with the N4P and the ICRC Establishment Act of 2005. The directive explicitly states:
“MDAs are by these guidelines directed to note that the execution of Memoranda of Understanding (MoUs), Memoranda of Association (MoAs), 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.”
The circular further instructed MDAs to ensure compliance with these legal frameworks, emphasizing that any deviation would be considered a violation of federal policy. MDAs engaging in PPP or concession arrangements are required to operate within these laws and are encouraged to seek clarification from the ICRC compliance desk at compliance@icrc.gov.ng if needed.
This directive demonstrates the Federal Government’s commitment to fostering transparency, efficiency, and accountability in PPP projects, ensuring that these initiatives align with national policy goals and legal standards.
By enforcing these measures, the government aims to strengthen the implementation of PPPs as a vital tool for driving sustainable infrastructure development and promoting economic growth, particularly as Nigeria prepares its 2025 budget proposals.
This policy shift is expected to improve the structuring and execution of PPP projects, fostering investor confidence and ensuring that private-sector collaborations effectively contribute to national development objectives.
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