PUBLIC PRIVATE PARTNERSHIP AND INFRASTRUCTURAL DEVELOPMENT IN NIGERIA

Umeora Chinweobo Emmanuel

Department of Banking and Finance

Anambra State University, Igbariam Campus

Email: ceumeora@yahoo.com

ABSTRACT

Public private partnership as a development model and strategy started in Europe as a way of tackling infrastructure deficiencies and reduction of public borrowing. It involves a contract between a public sector Authority and a private party in which the private party provides a public service or product and assumes substantial financial, technical and operational risks in the projects. The drive to public private partnership in developing countries follow on the heels of successes achieved in developed countries. Like in other countries, the adoption is to bridge the finance gap in the provision of infrastructure and reduction in government finances and borrowing. It is important to note that public private partnership projects are bankable and economically viable projects while the governments should continue to provide social welfare services outside PPP considerations.  Most states have established PPP Units to coordinate the scheme. The Federal Governments on its part established Infrastructure Concession Regulatory Commission (ICRC) to oversee projects under public private partnerships. So far many projects concessioned have been beset by myriads of problems which prevented some of them from taking off. There are however, some success stories. It is hoped that in due course public private partnership will assume the level of success achieved in developed countries. It will then hopefully help to ameliorate the dismal state of the nation’s infrastructure.