To tackle the nation’s $2.3 trillion infrastructure deficit, the Nigerian government is implementing measures to curb contractual conflicts within public-private projects. Federal officials are currently working with stakeholders to better define the obligations between state entities and private firms.
Beatrice Jedy-Agba, Solicitor-General and Permanent Secretary of the Ministry of Justice, announced the introduction of a Model PPP Agreement in Abuja. This framework is designed to protect the country from aggressive litigation linked to poorly defined contracts. She emphasized that the Justice Ministry will play a key role in scrutinizing indemnity clauses and refining dispute resolution to prevent lopsided risk allocation and sovereign defaults.
Jobson Ewalefoh, Director-General of the Infrastructure Concession Regulatory Commission (ICRC), noted that Nigeria requires roughly $100 billion in annual investment to address its infrastructure shortages by 2043. He explained that since government revenue is inadequate, private sector involvement is essential. The new standardized framework replaces the previous ad-hoc negotiation style, aiming to lower transaction costs and expedite project timelines.
The updated guidelines incorporate specific provisions for performance monitoring, anti-corruption measures, and structured conflict resolution. By establishing a mandatory baseline for all government agencies, the policy aims to ensure legal predictability and protect the public interest. This move follows recent government efforts to bolster legal defenses in major commercial disputes, including the high-profile case involving Process & Industrial Developments.
