Report on ppp in nigeria


Published on

With growing interest in Nigeria's PPP investment window, you need to read Larry Happiday's reports or visit for more information on Nigeria infrastructure.

Published in: Economy & Finance
1 Comment
  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Report on ppp in nigeria

  1. 1. Report: State of PPP in NigeriaBy Larry HappidayI have been inundated with request for a report on the Public Private Partnerships in Nigeria. Acomprehensive report is being compiled complete such as has never been published in thecountry before. with bio-data, statistics and prospects of the programme in different states ofNigeria, you get you handle on the need-to-know information that will not only make you anearly bird but also leading investor with the advantage of discovering the gold before the boom.Those who are interested in the detailed report will be given a free access to the three reports:Happiday Reports to be published in January, 2013. That will sure be a good Birthday gift tothose who have been reading our reports in Nigeria Infrastructure for the last three (3) years. I will take you through the twists and turns in the PPP pathway of Nigeria with a view tohelping you weather through the challenges of investing in this peculiar sector. You will beguided to avoid losing money in areas that are landmines and giving you an idea of key issues toclarify before making that commitment.The three reports on PPP in Nigeria will be the investor’s bible to investing in the boomingNigerian infrastructure market. Behind China alone, Nigeria’s ambitious rail system is the mostambitious in that sector in the world. She is also pursuing a very ambitious building and houseconstruction with her capital city, Abuja one of the most thriving in Africa. Indeed, Estatedevelopments in Abuja have seen investment from many foreign and local investors (see a listof Estates in Abuja with the names and nationalities of investors). You will see how much hasbeen spent by the many successful financiers. If you have not considered investing in thebooming building in Abuja, some states are also having inducements that have equallyattractive. Do you want to see details of these states and what they are offering? Check hereBuilding Boom in Nigeria ReportInstitutional investors have also found Nigeria’s infrastructure market to be a goldmine.Railways, roads, airports are being built or upgraded through PPP and both states and thefederal government have shown that they intend to drive development through PPP. Thesuccess stories in Lekki Expressway and the Terminal 1 of the Murtala Mohammed Airport arethe best signpost. But this has not been with out problems. Do want to see the peculiarproblems that bedeviled their ventures? You will find our free report on the Problems andChallenges of PPP Projects in Nigeria interesting.Other projects happening through PPP or proposed to be are the seaports, new airports, newrail roads and modern city infrastructure in a couple of states like The Women Development
  2. 2. Centre in Abuja. You need to see the list of other development projects that have been farmedout to the private sector using the PPP model. They include: the Port Concessions by theNigerian Ports Authority for several of the ports in Onne, Apapa and Warri. At least nineteensuch port facilities are in the hands of the private sector today. The Federal Government hasalso indicated its interest in using the PPP model for development of silos and preservationfacilities.OTHER PLAYERS IN THE PPP GAMEApart from the Federal Government, three State Governments: Lagos, Rivers and Cross Riverare known to have embraced PPP with varying degrees of success. Lagos is building her Lekki-Epe Expressway and the New City development facilities through PPP. She is also consideringbuilding new sea port and airport facilities using the same funding model. Rivers has investedher energies in social facilities like ClinoRiv Hospital, Transportation (Skye Bank), Housing,Entertainment (Silverbird). Cross River, the unofficial entertainment headquarters of Nigeria isbuilding an entertainment park in conjunction with an American company.RELATIONSHIP BETWEEN FEDERAL AND STATE GOVERNMENT PPP’sEvery investor needs to know that Nigeria is a federation. That means that some projects are onthe concurrent list of the country. Items on the concurrent list include roads, education, powergeneration, social services, hospitality, housing, entertainment. The Federal Government ishowever exclusively in charge of seaports, airports (although she can give approval to statesthat want to build airports). According to the Infrastructure Concession Regulatory Commission(ICRC)’..a number of State Governments are considering using PPP to develop infrastructure.Although each State is responsible for its own investment projects, many PPP projects within aState will be financed with the support of a guarantee by the Federal Government. In providingany such guarantees, the Government will have regard to best practices as exemplified by itsown PPP Policy and guidelines.’ Investors are advised to ascertain the reliability and integrityof promoters of PPP in the states though because it all comes down to the fact that ICRC hasno power to regulate State PPP’s.The Lagos State Government under the administration of Governor Raji Fashola haspromulgated Lagos State Roads, Bridges and Highway Infrastructure Law 2005 as the lawguiding the LCCI concession on Lekki Expressway but it is also useful in directing futureconcessions in road construction. Lagos has also shown its willingness to get the PPP to work.The State Government has done all trouble shooting that has ensured that the showcase Lekki-Epe Expressway got back on track after a very spirited battle to scuttle it by residents (see….byLarry Happiday on
  3. 3. FEDERAL PPP PROJECTS IN THE OFFINGThere are a few Road and Bridge projects that have either been opened for expression ofinterest EOI bids or are about to be advertised. Some of these include: a. The six lane dual expressway second Niger Bridge with 14 kilometer of approach roads. b. The upgrade and expansion of the International Airport Road from a four lane expressway to an eight (8) lane road. The road is expected to have flyovers and pedestrian bridges. c. The Nupeko Bridge across Kwara and Niger States. The Electricity sub sector is another sector that is experiencing a lot of activities currently. Investments running into billions of dollars (US) are already flowing into this sector and some projects are almost completed and awaiting connection to the national gas grid. Some electricity projects in the works include: a. Hydro power generation facilities that can produce up to 43 mega watts from existing Ten (10) Small and Medium dams. b. Concessioning of the existing large Hyrdro Power Plants located at Kainji, Jebba and Shiroro. Preferred bidders have already emerged in the sale process for the existing power generation and distribution companies.Other projects include the Ports concession of Rehabilitation and Upgrade of Kiri Kiri LighterTerminals I & II which when completed will be concessioned away under the PPP Model:Landlord Port Model for the Nigerian ports in line with the ongoing ports reform programme;National Centre for Women Development with a facility of 100 bed guest house withunderground parking facility, 1200 seat auditorium and 300 seat auditorium.For further information on Nigeria’s infrastructure development contact Larry Happiday onlarryhappiday1@gmail.comFor related reading subscribe to: The Happiday Reports