President Bola Tinubu has decentralized approvals for Public-Private Partnership (PPP) projects below N20 billion naira. The decentralization grants Infrastructure Concession Regulatory Commission (ICRC) approval powers for the PPP projects under ₦20bn.
This approval automatically removed Federal Executive Council (FEC) clearance, allowing ministries to approve PPP projects under N20 billion, and agencies and parastatals to approve the PPP projects below N10 billion. The policy is for the purpose of speeding up project execution and attract more private sector investments.
Quick Hints: A Public-Private Partnership (PPP) is an agreement between a government and a private company to finance, develop, and operate projects that provide public services or infrastructure. In this sense, both parties share responsibilities, risks, and rewards. The private sector often bringing in investment and expertise while the government ensures public interest and regulatory oversight.
Why it matters
The President Tinubu's authorization of approvals to ICRC was announced by the commission's Director-General, Dr. Jobson Ewalefoh through the commission's acting Head of Media, Ifeanyi Nwoko. According to him, the reform removes administrative delays that usually slow down small and medium-sized projects handled by government ministries and agencies.
He said these projects will be approved by their respective Project Approval Boards (PABs) to reduce dependence on the Federal Executive Council (FEC). More so, it's worth noting that President Tinubu emphasized that PPPs are crucial for driving transformative national development.
