Nigeria has introduced a standardised Public-Private Partnership agreement aimed at speeding up infrastructure projects and attracting more private investment into the sector.

The new framework, developed by the Infrastructure Concession Regulatory Commission, is expected to provide a common template for PPP transactions, reduce delays associated with negotiations and improve the preparation of infrastructure projects.

The Director-General of the ICRC, Jobson Ewalefoh, announced the development on Tuesday during a stakeholder engagement in Abuja.

Ewalefoh said Nigeria’s infrastructure deficit is estimated at about $2.3 trillion, adding that the country would need approximately $100 billion yearly until 2043 to address the gap.

He said the model agreement was designed to address challenges that have affected PPP transactions since the passage of the ICRC Act in 2005.

According to him, many concession agreements had previously been negotiated independently, leading to differences in risk-sharing arrangements, high transaction costs, lengthy negotiations and uncertainty among investors.

The ICRC boss said the framework would serve as a reference point for government agencies and private investors, while allowing room for adjustments based on the nature of individual projects.

He explained that the agreement contains provisions on risk allocation, insurance, force majeure, changes in legislation, dispute resolution, lender protection, project monitoring and anti-corruption measures.

Under the arrangement, disputes arising from concession agreements will first go through consultation and negotiation. The ICRC may intervene where necessary before parties proceed to arbitration in line with the Arbitration and Mediation Act, 2023.

Ewalefoh said the framework would also strengthen contract administration, reporting requirements and accountability in concession projects, with the aim of reducing the time required to reach financial close.

He urged Ministries, Departments and Agencies to adopt the agreement for future PPP projects and submit any proposed modifications for statutory consideration.

The ICRC also said the framework could support the mobilisation of funding from pension funds, sukuk, green bonds and blended finance arrangements.

Stakeholders at the engagement included representatives of government agencies, legal practitioners, financial experts, development partners, transaction advisers and private sector investors.