FG to Conduct Comprehensive Audit of PPP Projects, Enforce Insurance
By Patience Ikpeme
The Federal Government has announced plans to undertake a thorough audit of all Public-Private Partnership (PPP) projects in the country.
This move, spearheaded by the Infrastructure Concession Regulatory Commission (ICRC), aims to evaluate the performance of these projects and ensure strict adherence to statutory insurance requirements.
Dr. Jobson Oseodion Ewalefoh, the Director General of the ICRC, made this disclosure during a courtesy visit to the Minister of Interior, Dr Olubunmi Tunji-Ojo.
The ICRC DG assured the Minister that the Commission was actively working on assessing the performance of existing PPP projects and would strictly enforce the mandatory insurance policy for all government assets involved in PPP arrangements. He further committed to providing comprehensive training to PPP desk officers in Ministries, Departments, and Agencies (MDAs) through the ICRC Institute.
“We are diligently implementing mechanisms to commence the audit of PPP agreements signed in the past,” Dr. Ewalefoh explained. “This is not about condemnation or termination but about optimizing these projects for the greater good of the nation.”
Regarding insurance, the DG emphasized that it was a legal imperative for all national assets, both hard and soft infrastructure, that are concessioned through PPP to be insured. “We will soon issue a directive that all assets under PPP must be insured in compliance with the law,” he stated.
The Minister of Interior, Tunji-Ojo, commended the Commission for its role in facilitating PPP projects. He highlighted the substantial investments that have been made in his ministry through PPPs, exceeding $500 million in the past year alone.
“We firmly believe that many of our agencies should operate independently of the government budget,” the Minister said. “PPP is a strategic approach to leverage private sector resources and expertise to enhance efficiency and productivity.”
The Permanent Secretary of the Ministry of Interior, Dr. Magdalene Ajani, also lauded the Minister’s leadership and commitment to PPPs. She emphasized the importance of utilizing PPP arrangements to optimize government resources and achieve superior outcomes.
The ICRC’s announcement of a PPP audit and insurance enforcement comes at a time when the Federal Government is actively seeking to diversify the economy and increase private sector participation in infrastructure development. By ensuring that PPP projects are effectively managed and insured, the government aims to safeguard public funds and maximize the benefits of these partnerships.
The Federal Government will conduct a thorough audit of all PPP projects to evaluate their performance. The ICRC will ensure that all government assets involved in PPP arrangements are adequately insured and the institute will provide training to PPP desk officers in MDAs. The audit aims to optimize PPP projects for the benefit of the nation, rather than condemning or terminating them.
Insurance is now mandatory for all national assets involved in PPP arrangements. The Ministry of Interior has attracted over $500 million in PPP investments in the past year. The government views PPP as a valuable tool for leveraging private sector resources and improving efficiency. The announcement demonstrates the government’s commitment to diversifying the economy and increasing private sector participation.
The Permanent Secretary of the Ministry of Interior, Dr. Magdalene Ajani lauded the Minister’s leadership and commitment to PPPs. She emphasized the importance of utilizing PPP arrangements to optimize government resources and achieve superior outcomes.
The ICRC’s announcement of a PPP audit and insurance enforcement comes at a time when the Federal Government is actively seeking to diversify the economy and increase private sector participation in infrastructure development. By ensuring that PPP projects are effectively managed and insured, the government aims to safeguard public funds and maximize the benefits of these partnerships.