Tinubu Decentralizes PPP Approvals to Fast-track Infrastructure Projects
By Patience Ikpeme
President Bola Ahmed Tinubu has granted the Infrastructure Concession Regulatory Commission (ICRC) new authority to streamline the Public-Private Partnership (PPP) project delivery process. The President’s approval of PPP thresholds for Ministries, Departments, and Agencies (MDAs) decentralizes the approval process, thereby accelerating the delivery of small and mid-scale projects.
Previously, all PPP projects, regardless of their size, were subjected to a lengthy approval process by the Federal Executive Council (FEC). This centralized system often caused delays and limited the participation of MDAs with smaller, yet impactful, projects.
Under the new directive, MDAs now have the power to approve projects below specified thresholds in accordance with ICRC guidelines, a move designed to support all scales of projects and foster broader private sector investment.
Dr. Jobson Oseodion Ewalefoh, the Director General of the ICRC, who disclosed the presidential approval, provided specifics on the new thresholds. He stated that PPP projects valued below N10 billion for Parastatals/Agencies and N20 billion for Ministries will now be approved by their respective Project Approval Boards (PABs), which will be constituted under ICRC regulations. Only projects exceeding these thresholds or those requiring inter-agency coordination will still require FEC approval.
Dr. Ewalefoh was clear that all projects approved under the new framework must be entirely privately funded, with no government guarantees or financial commitments from the treasury. He also clarified that despite the new thresholds, every PPP project must still be submitted to the ICRC for review and certification. The ICRC must issue certificates of compliance before any project can be approved by the PAB or other approving bodies.
The ICRC Director General explained that this framework marks a significant departure from the previous “one-size-fits-all” approach, moving towards a more dynamic, scale-sensitive model intended to unlock low-value but high-impact projects. He expects the new process to be a “game-changer” for sectors such as health, education, agriculture, and housing. He anticipates private sector-led investments in projects like rural diagnostic centers, classroom blocks, student hostels, and affordable housing schemes across the country with less bureaucratic hurdles.
Dr. Ewalefoh said the new framework aligns with President Tinubu’s broader public procurement reforms, ensuring harmony across the government’s financial and investment systems. By decentralizing approvals, the government aims to support and unlock investment opportunities, improve capital inflows, create jobs, and accelerate project delivery—all critical needs in the current economic climate.
In closing, Dr. Ewalefoh conveyed that the ICRC will continue to promote, guide, and regulate the PPP ecosystem in the country while collaborating with other agencies in the infrastructure ecosystem, including the Bureau of Public Procurement (BPP), Ministry of Finance Incorporated (MOFI), and the Bureau of Public Enterprises (BPE). He encouraged all MDAs to take advantage of the newly approved thresholds and forthcoming guidelines from the Commission to deliver on the President’s Renewed Hope Agenda.
