FG Tightens PPP Framework, Mandates ICRC Compliance for MDAs
By Patience Ikpeme
A new directive issued by the Federal Ministry of Budget and Economic Planning now requires all Ministries, Departments, and Agencies (MDAs) to strictly adhere to the National Policy on Public Private Partnerships (N4P) and the Infrastructure Concession Regulatory Commission (ICRC) Act (2005) when engaging in PPP arrangements.
This directive, outlined in the “FGN 2025 Budget Call Circular,” shows the government’s commitment to ensuring transparency, accountability, and efficiency in PPP projects.
The 2025 Budget Call Circular serves as a guide for MDAs in preparing their budget proposals, specifically noting the importance of PPPs.
Section 2 of the circular explicitly states that MDAs are no longer permitted to enter into Memoranda of Understanding (MoUs), Memoranda of Association (MoAs), or contractual agreements with private parties for PPPs without complying with the N4P and the ICRC Act.
This move aims to eliminate past practices where MDAs bypassed established regulations, potentially leading to irregularities and inefficiencies.
The new directive noted that any MDA interested in pursuing a PPP or concession arrangement must operate within the framework of existing laws and policies established by the ICRC. The circular further provides contact information for the ICRC (compliance@icrc.gov.ng) to facilitate communication and ensure compliance.
The ICRC, established in 2005, plays a crucial role in overseeing and regulating PPP projects in Nigeria. The N4P, developed by the ICRC, outlines a comprehensive framework for successful PPP implementation, promoting value for money, public interest, and transparency.
This latest government directive is expected to have a positive impact on the development and implementation of PPP projects in Nigeria. By adhering to the established ICRC regulations, MDAs can be assured of a standardized and transparent process, ultimately attracting more qualified private sector partners and delivering high-quality infrastructure projects.
The move is also expected to enhance investor confidence in Nigeria’s PPP framework, encouraging greater private sector participation in critical infrastructure development.
