FG Goes Tough On PPP Agreements, Declares Non-Compliance With ICRC Act Illegal

• Demands MDAs’ strict adherence to existing guidelines

BY COBHAM NSA – The Federal Government has declared as illegal any Public Private Partnership (PPP) arrangement that does not comply with the National Policy on Public Private Partnerships (N4P) of the Infrastructure Concession Regulatory Commission (ICRC) Act.

Accordingly, all Ministries, Departments and Agencies (MDAs) of government have been directed to ensure full compliancy with the ICRC Act in conducting any form of PPP arrangement henceforth.

An official circular titled; “FGN 2025 Budget Call Circular”, issued by the Federal Ministry of Budget and Economic Planning, mandated all MDAs to align with the provisions of ICRC Establishment Act (2005) in preparing and submitting their respective 2025 budget proposals as it relates to PPPs.

Importantly, the Circular also sets out the requirements and instructions to be satisfied and followed in preparing the 2025 Federal Government Budget Proposal.

The directive as contained in section 2 of the circular reads in part; “MDAs are by these guidelines directed to note that the execution of Memoranda of Understanding (MoU), memoranda of Association (MoA) and various contract instruments for PPP arrangements between MDAs and private parties without recourse to the extant provisions of the National Policy on PPPs (N4Ps) nor the ICRC (Establishment Act, 2005) is a clear contravention of the law.

“Consequently, any MDA interested in PPP or concession arrangements must act within the ambit of existing laws and policy listed above and ensure alignment with this guideline”.

“For further information, please contact the Infrastructure Concession Regulatory Commission (compliance@icrc.gov.ng)”.

In line with the above guidelines, the government said it is mandatory for all MDAs to strictly adhere to the Act, Policy, and Regulation of the ICRC in committing to any form of PPP arrangement going forward