Fed Govt to audit public-private partnership projects

The Federal Government plans to conduct an audit of all public-private partnership (PPP) projects across Nigeria.

The aim is to evaluate their performance and ensure full compliance with statutory insurance requirements as mandated by the Infrastructure Concession Regulatory Commission Establishment Act, 2005.

Director-General, Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Ewalefoh, made this disclosure during his courtesy visit to the Minister of Interior, Dr. Olubunmi Tunji-Ojo.

A statement from the ICRC signed by Ifeanyi Nwoko, Acting Head, Media and Publicity said Ewalefoh assured the Minister that the ICRC is committed to evaluating all existing PPP projects to optimize their performance. He emphasized that the audit process is not intended to terminate any contracts but rather to enhance the efficiency of these partnerships in alignment with the nation’s goals.

“We are already putting mechanisms in place to audit the performance of PPP agreements that were signed in the past. This audit is not aimed at condemning or terminating them but to optimize them in the interest of the nation,” Ewalefoh stated.The ICRC’s audit process will involve assessing the overall contribution of PPPs to national development, particularly in infrastructure delivery, and addressing any issues that may hinder their success.

Another critical area highlighted by the ICRC DG was the enforcement of insurance policies for all national assets under PPP arrangements. Dr. Ewalefoh reiterated that both hard and soft infrastructure assets managed under PPPs are required by law to be insured.

 “Under the law, all national assets, both hard and soft infrastructure, that are concessioned through PPP must be insured. We are already looking into this and will soon issue a directive mandating the insurance of all assets under PPPs to ensure compliance,” he added.

This move aims to protect government assets and investments, ensuring that any damages or losses are adequately covered under insurance policies.In response to the Minister’s request for enhanced PPP capacity within Ministries, Departments, and Agencies (MDAs), Dr. Ewalefoh assured that the ICRC is working to train PPP desk officers. This initiative, he said, is already underway through the ICRC’s training institute.

He encouraged the Ministry of Interior to continue adopting PPP models to meet its infrastructure needs, while also seeking clarifications from the ICRC when necessary.

Dr. Ewalefoh commended the Minister of Interior for his leadership in utilizing PPPs to deliver key infrastructure needs. He noted that under Dr. Tunji-Ojo’s tenure, the Ministry of Interior had submitted the highest number of PPP projects for approval by the Federal Executive Council (FEC) in the past year.

 “From the record of the Commission, the total amount of investment that has come into this ministry in your time as Minister is over $500 million. We cannot thank you enough for being a champion of PPPs,” the DG stated, praising the Minister’s proactive approach to optimizing stalled PPP projects for improved performance and revenue generation.

The ICRC Director-General also used the opportunity to reassure investors that the current administration under President Bola Ahmed Tinubu remains committed to respecting the sanctity of PPP contracts. He highlighted that no PPP agreements under the ICRC’s purview have been cancelled since the new government took office.

 “We want to reassure the world and investors that the government of President Bola Ahmed Tinubu respects the sanctity of contracts. No signed PPP contract under the ICRC has been cancelled, showing that investors’ investments are safe,” Dr. Ewalefoh emphasized.

In his address, Minister Tunji-Ojo noted the Ministry’s plans to make key agencies under its purview self-reliant, reducing their dependence on the federal budget.

 “We believe that many of our agencies should operate off-budget, and we are working towards that goal. With limited government resources and a growing population of 230 million people, we must innovate in terms of financing,” the Minister said.

He explained that the Ministry had already leveraged private sector resources to deliver major infrastructure projects, citing the success of PPPs in the Nigerian Immigration Service (NIS). Projects such as the data center, e-gates, the Advanced Passenger Information System, and the near-completion of the Gap Management System are examples of successful PPPs.

Minister Tunji-Ojo affirmed the Ministry’s commitment to continuing its collaboration with the ICRC to ensure the success of PPP projects. He acknowledged the Commission’s role in providing technical expertise and ensuring that the Ministry’s PPP initiatives are well-structured and functional.

 “We appreciate the ICRC for its technical input in fine-tuning our projects. We will continue to work closely with the Commission to push Nigeria toward realizing its full potential,” the Minister concluded.

The Permanent Secretary of the Ministry of Interior, Dr. Magdalene Ajani, also congratulated Dr. Ewalefoh on his appointment, commending the Minister for his dedication to leveraging PPPs to deliver infrastructure projects and relieve the strain on government resources.

The Federal Government’s commitment to auditing PPP projects, ensuring insurance compliance, and leveraging private-sector resources for infrastructure development represents a strategic shift toward optimizing national assets. With the ICRC’s active role in fostering PPPs, the administration’s support of investor confidence, and the Ministry of Interior’s innovative approach to financing, Nigeria is poised to see improved infrastructure delivery and economic growth.

The coming audit and new insurance directives will ensure that PPP projects meet their full potential, ultimately benefiting the Nigerian economy and its citizens.

Fed Govt to audit public-private partnership projects - The Nation Newspaper (thenationonlineng.net)