President Bola Tinubu has empowered the Infrastructure Concession Regulatory Commission (ICRC) to implement a decentralised approval system for Public-Private Partnership (PPP) projects, marking a significant shift in Nigeria’s approach to infrastructure financing.
The new policy, announced on Sunday, removes smaller and mid-sized PPP projects from the lengthy Federal Executive Council (FEC) approval process, instead allowing Ministries, Departments, and Agencies (MDAs) to greenlight projects below specified financial thresholds under ICRC oversight. Analysts say the reform could unlock billions in stalled investments while catalysing job creation and economic growth.
This landmark decision, which introduces financial thresholds for PPP approvals, marks a significant departure from the previous system where all projects, regardless of size, required Federal Executive Council (FEC) approval. The move is expected to accelerate infrastructure delivery, reduce bureaucratic bottlenecks, and stimulate private sector investment across critical sectors of the economy.
Until now, Nigeria’s PPP framework operated under a rigid, centralised model that subjected every project—whether a multi-billion-naira highway or a modest rural clinic—to the same lengthy FEC approval process. This one-size-fits-all approach often delayed smaller but high-impact projects, discouraging private investors and stifling growth in sectors like health, education, and housing.
The new policy decentralises decision-making, allowing Ministries, Departments, and Agencies (MDAs) to approve projects below specified financial thresholds under the guidance of the ICRC. Only larger projects or those requiring inter-agency coordination will still need FEC clearance.
The Director-General of the ICRC, Dr. Jobson Oseodion Ewalefoh, unveiled the details in a statement issued on Sunday, explaining the mechanics of the new system.
“Under the new directive, PPP projects valued below N10 billion for parastatals/agencies and N20 billion for ministries will now be approved by respective Project Approval Boards (PABs) that will be constituted under ICRC guidelines and regulations,” he said. “Only projects exceeding these thresholds—or those involving multiple ministries and requiring inter-agency coordination—will require FEC approval.” This tiered approach is designed to unlock a wave of smaller-scale projects that had previously been stalled by bureaucratic red tape.
A critical safeguard in the new framework is the insistence on private funding. “Importantly, all such projects must be entirely privately funded, with no government guarantees or financial commitments from the treasury,” Ewalefoh emphasised. This condition ensures that the government avoids fiscal exposure while still benefiting from private sector expertise and capital. However, the ICRC retains a central oversight role. “Notwithstanding the new thresholds, every PPP project must be submitted to the ICRC for review and certification. The ICRC must issue certificates of compliance before the PAB and other approving bodies can approve any PPP project,” he added. This dual-layer review process aims to maintain accountability and prevent substandard deals.
The implications of this policy shift are far-reaching. By decentralising approvals, the Tinubu administration hopes to catalyse investment in sectors that have long suffered from underfunding and inefficiency. Ewalefoh highlighted the potential impact: “This approval is a game-changer, especially for sectors like health, education, agriculture, and housing. We expect to see private sector-led investments in projects like rural diagnostic medical centres, construction of classroom blocks, student hostels, and delivery of affordable housing schemes across the country, with fewer bureaucratic requirements under the newly adopted process.” For instance, a private hospital chain can now partner with a state government to build a N5 billion diagnostic centre without waiting months for FEC approval, significantly speeding up service delivery to underserved communities.
The reform aligns with President Tinubu’s broader agenda to overhaul Nigeria’s public procurement and infrastructure financing systems. At the recently concluded Nigeria PPP Summit 2025, the president described the ICRC as the “engine room of Nigeria’s infrastructure revolution,” underscoring the pivotal role of PPPs in achieving his administration’s development goals. Ewalefoh echoed this vision, stating that the new framework would harmonise with other reforms, including those led by the Bureau of Public Procurement (BPP) and the Bureau of Public Enterprises (BPE). “By decentralising approvals, the government is supporting and unlocking investment opportunities through improved capital inflows, job creation, and faster project delivery—exactly what we need in this current economic climate,” he said.
Despite the optimism, challenges remain. Some analysts worry that MDAs may lack the technical capacity to evaluate complex PPP proposals, potentially leading to poorly structured contracts or even corruption. “Not all ministries have in-house expertise to negotiate PPP deals. The ICRC must provide robust templates and training to avoid costly mistakes,” warned a senior infrastructure consultant who preferred anonymity. Others caution that without stringent oversight, the new system could be exploited by unscrupulous officials to favour cronies. Transparency advocates have called for mandatory disclosure of all PPP contracts and independent audits to ensure compliance with due process.
The ICRC has acknowledged these concerns, pledging to work closely with MDAs to build their capacity and enforce strict adherence to guidelines. Ewalefoh stressed that the commission would continue to collaborate with other agencies in the infrastructure ecosystem, including the Ministry of Finance Incorporated (MOFI), to ensure transparency and efficiency. He also urged MDAs to embrace the new system, saying, “MDAs are encouraged to embrace the utilisation of PPPs for the delivery of critical infrastructure in delivering on the Renewed Hope Agenda of the president.”
As the policy takes effect, all eyes will be on its implementation. Success will depend on the ICRC’s ability to balance speed with accountability, ensuring that projects are not only approved faster but also meet high standards of quality and fairness. If executed well, the reform could become a cornerstone of Tinubu’s economic strategy, demonstrating that smarter regulation—not just increased spending—can drive progress. For private investors, the message is clear: Nigeria’s PPP space is becoming more accessible, and the opportunities are vast. From rural healthcare facilities to urban housing schemes, the new thresholds could unlock a wave of transformative projects that bring the country closer to its infrastructure ambitions.
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