UNDERSTANDING AND STRENGTHENING THE CONTRACTUAL STRUCTURES OF PUBLIC PRIVATE PARTNERSHIP (PPP) TRANSACTIONS IN NIGERIA
Keywords:
NIGERIA, CONTRACTUAL STRUCTURES, PUBLIC PRIVATE PARTNERSHIP (PPP)Abstract
This paper discusses the contractual structures of PPP transactions in order to understand the interplay of parties, their specific roles, and the standard agreement templates that could achieve the aspirations of parties and ensure the success of PPP transactions in Nigeria. Over the years, the Federal Government had instituted PPP to leverage on private finance in the provision of public infrastructure and services, and consolidated such effort with the promulgation of the ICRC Act in 2005. This saw a significant increase in PPP transactions that, as at today, there are more than fifty executed PPP agreements in the ICRC records. A careful analysis of the record would reveal that a larger percentage of the agreements are either being reviewed or terminated, abandoned or a subject of litigation. The paper, after carefully analyzing the role of parties, their interrelationships and their transaction agreements at different stages of the PPP life cycle against the context of standard PPP contractual terms, found that contractual structures account partly for the failure of PPP projects in Nigeria. It therefore recommends a legislative and institutional amendment of Nigeria’s PPP process to allow for a standardized contract templates and a mechanism for quicker dispute resolution.
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