By Eshiorameh Sebastian in Abuja
In a major policy shift aimed at accelerating infrastructure development, President Bola Tinubu has authorised Ministries, Departments and Agencies (MDAs) to approve Public-Private Partnership (PPP) projects valued below N20 billion without requiring Federal Executive Council (FEC) clearance.
The new framework, which takes immediate effect, mandates that all such projects must comply strictly with guidelines set by the Infrastructure Concession Regulatory Commission (ICRC).
The presidential directive, announced by ICRC Director-General Dr. Jobson Oseodion Ewalefoh in Abuja on Sunday, fundamentally restructures Nigeria’s PPP approval process. “Under the new policy, PPP projects valued below N10 billion for government agencies and N20 billion for ministries can now be approved by their respective Project Approval Boards,” Ewalefoh stated. “Only projects exceeding these thresholds or requiring multi-agency coordination will need FEC approval.”
This reform dismantles the previous system where all PPP projects, regardless of size, had to undergo the often lengthy FEC approval process. Industry experts have long criticized this approach for creating unnecessary bottlenecks, particularly for smaller-scale infrastructure projects in critical sectors like healthcare, education and housing.
The ICRC chief emphasized that while MDAs gain new approval powers, robust safeguards remain in place. “Every single PPP project must first undergo ICRC review and receive our compliance certificate before any MDA approval board can consider it,” Ewalefoh explained. “This ensures all projects meet established standards and guidelines before proceeding.”
A key provision of the new policy is its strict financing requirement. “All projects under these thresholds must be fully privately funded,” the ICRC DG stressed. “There will be no government guarantees or treasury commitments for these approvals.” This condition protects public finances while encouraging genuine private sector investment.
The policy change comes after extensive consultations between the presidency, ICRC, and infrastructure stakeholders. At last week’s Nigeria PPP Summit 2025, President Tinubu had hinted at imminent reforms, describing the ICRC as “the engine room of Nigeria’s infrastructure revolution.” The new thresholds now operationalize that vision.
Ewalefoh outlined the expected benefits: “We anticipate rapid growth in private sector participation, particularly for mid-sized infrastructure projects that previously couldn’t justify the long approval timelines. This will be transformative for sectors like health, where we need numerous smaller facilities across the country rather than just a few mega-projects.”
The ICRC will immediately begin capacity-building programs for MDA staff who will serve on the new Project Approval Boards. “We’re developing standardized evaluation templates and conducting training sessions to ensure all MDAs can properly assess PPP proposals,” Ewalefoh noted. The commission will also establish a streamlined digital submission system to handle the expected increase in project applications.
While private sector groups have welcomed the reforms, some observers caution about implementation challenges. “The success of this policy hinges on two factors: MDA competency and ICRC’s enforcement capacity,” said infrastructure lawyer Ngozi Okonkwo. “Without proper oversight, some MDAs might approve substandard projects or misinterpret the guidelines.”
Transparency advocates have called for mandatory public disclosure of all approved PPP projects and their terms. “We need an online portal where citizens can track every MDA-approved project, its value, and the private partners involved,” said Auwal Ibrahim of the Public and Private Development Centre.
The presidency views the reform as part of broader efforts to improve Nigeria’s business climate. “This aligns perfectly with our Ease of Doing Business agenda,” said Special Adviser on Economic Matters Tope Fasua. “By reducing approval times for infrastructure projects, we make Nigeria more attractive to investors while delivering development faster to our people.”
As the new system takes effect, the ICRC plans quarterly reviews to assess its impact. “We’ll monitor approval timelines, project quality, and private sector response,” Ewalefoh said. “Where necessary, we’ll adjust the thresholds or guidelines to ensure optimal results.”
With Nigeria’s infrastructure deficit estimated at over $3 trillion, the Tinubu administration believes this decentralized approval system could unlock billions in private investment. As the first projects under the new thresholds begin moving through the streamlined process in coming weeks, all stakeholders will be watching closely to see if this bold reform delivers on its promise to accelerate Nigeria’s infrastructure revolution.
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