Nigeria needs committed private sector investors to bridge infrastructure gap

…Nigeria urgently needs PPPs – ICRC DG

Omeiza Bilal

The federal government has said that it needs committed partners that would help Nigeria build its infrastructure to world class standards.

Speaking as the guest of honour at the opening ceremony of the Nigerian Public-Private Partnership Summit 2025, Tuesday in Abuja, President Bola Tinubu noted that the country’s infrastructure landscape presents an immense opportunity for the private sector to create value.

The summit, themed “Unlocking Nigeria’s Potential: The Role of Public-Private Partnerships in Delivering the Renewed Hope Agenda,”

In his address on the ‘’The Future Is a Shared Responsibility’, The President, who was represented by Vice President Kassim Shettima, insisted that what Nigeria needs is long-term public-private partnerships to address its infrastructure gap referencing the National Integrated Infrastructure Master Plan 2020-2043, which aims to increase infrastructure investment from 30 percent to 35 per cent by 2043.

“To our private sector partners, we ask not just for capital, but for commitment. Nigeria offers scale, demand, and returns like no other African market. But we need more than investment. We need innovation, we need efficiency, and above all, we need integrity. I urge you to look beyond the risks and recognise the immense opportunity to shape a nation that is not just rising, but ready.

“The old model of public-only infrastructure funding is no longer sustainable. Our national aspirations far exceed what public budgets alone can deliver. That is why we must innovate, and why we must work together. We are not looking for investors to carry burdens. We are offering opportunities to create value. We seek long-term partners who are ready to help us bridge our infrastructure gap with purpose and precision.

“The National Integrated Infrastructure Master Plan (2020 to 2043) remains our blueprint. It is our compass to raise infrastructure stock from the current 30 to 35 percent of GDP to at least 70 percent by the year 2043. But blueprints do not build roads. Policies alone do not generate megawatts. These goals require collective action. And that is the focus of my administration.

“When we took charge over two years ago, we knew that a functional relationship between the public and private sectors would be the magic wand of transformation. That is what we have committed to, and that is what we are doing. We have strengthened the Infrastructure Concession Regulatory Commission and enhanced its capacity to regulate, superintend, and de-risk PPP transactions. We are determined to deliver infrastructure that is both sustainable and inclusive,” the President said.

He further said that with recent reforms recent economic reforms, including subsidy removal and foreign exchange liberalization, the country’s investment environment was gradually on the path of stability.

He expressed optimism about Nigeria’s readiness for business and development, emphasizing significant progress and the participation of 230 million Nigerians.

“The projects that emerge from this summit must not gather dust on paper or linger in bureaucratic limbo. We will fast-track approvals for viable projects. We will ensure coordination across Ministries, Departments, and Agencies to enable swift implementation. We do this because we know that what matters to the average Nigerian is not promises, but power in their homes, roads to their farms, access to clean water, modern hospitals, and quality schools.

“We must build. We must deliver. And we must do it together.

“Distinguished participants, Nigeria does not lack potential. What we have lacked, at times, is alignment of purpose and the courage to act decisively. Today, let us chart a new path, not just as government and investors, but as partners in nation-building.

“Let this summit be remembered not for fine speeches, but for bankable projects, signed deals, and enduring progress.

In his welcome address, the Director General, Infrastructure Concession Regulatory Commission (ICRC), Dr. Jobson Ewalefoh, said Nigeria needs a significant amount of Public Private Partnerships (PPP) to bridge its infrastructure gap.

The ICRC Director General, added that the federal government is focused on infrastructure development as it is crucial to economic development and growth.

He said, “Let me assure our local and international investors: Nigeria is open for business — and more importantly, ready for partnership. With over 200 million people, a growing middle class, rich natural endowments, and an enormous infrastructure gap estimated at over $2.3 trillion — the case for PPPs in Nigeria is not only compelling, it is urgent.

“At the ICRC, we are aligning regulation with facilitation, compliance with collaboration. We are committed to ensuring that every PPP transaction is not just legally sound, but economically viable and socially impactful. The Commission stands ready to walk this journey with all partners — from project conceptualization to financial close and beyond.

“And this we have done with the full backing of Mr. President and his clear charge to the ICRC to ensure the acceleration of investment in national infrastructure through the innovative mobilization of private-sector funding.

“President Tinubu has taken deliberate steps to strengthen the ICRC, endorsing streamlined processes that enhance our ability to deliver PPPs faster and more efficiently. In 2024, he directed that all MDAs must comply strictly with the ICRC Act and Guidelines in all PPP transactions — a clear statement of his commitment to rule-based, transparent infrastructure development.

“He has preserved the integrity of our regulatory mandate, never interfering with our processes. Instead, he routinely directs prospective investors and partners to engage directly with the ICRC — reinforcing our role as the statutory gateway for all federal PPPs.”

Vice President Private Sector, Infrastructure and Industrialisation, African Development Bank (AfDB), Mr. Solomon Quaynor, said Nigeria needs a significant public-private partnerships (PPPs) collaboration to address an estimated infrastructure financing gap of $70 to $110 billion annually.

Quaynor asserted that PPPs are complex long-term contracts that needed to be designed properly to survive different political administrations. According to him, the complexity of PPPs as long-term contracts saying they should be carefully designed to withstand political changes.

He recommended that allowing investors to achieve early successes, termed ‘low hanging fruits’, will foster confidence in future projects.

“The African Development Bank has adopted a comprehensive PPP strategic framework that includes three key pillars: enabling environment, project preparation and transaction support, and mobilizing capital and de-risking projects.

“InfraCredits, created in collaboration with NSIA, has mobilized about $500 million equivalent in Naira for funding infrastructure bonds in Nigeria, showcasing a successful example of leveraging private capital for infrastructure development.

In his brief remarks, Director of Project Preparation Finance, Mr Zitto Alfayo at Afreximbank, insisted that without private sector investment, it would be difficult for the government to bridge the huge infrastructure gap.

He said PPP will fasttrack Nigeria’s economic growth highlighting the necessity for private sector investment due to the government’s limited fiscal capacity.

While stating that the Bank has invested over $50 million in various sectors of the Nigerian economy, Alfayo added that the establishment of a project preparation facility by Afreximbank to help developers create investment-ready projects, amidst a backdrop of significant infrastructure expenditure in Africa.

He highlighted the importance of a coordinated effort among public and private sectors if a country is to address its infrastructure problem as no single stakeholder can address Nigeria’s infrastructure deficit alone.

“Afreximbank has established a project preparation facility to support project developers and sponsors in advancing projects from concept to bankability, addressing the challenge of lack of well-prepared investment-ready projects.

“The continent’s annual infrastructure expenditure is approximately $60 billion, with a significant portion awarded to external contractors, primarily from China, India, and Europe.

“The PPP initiative has facilitated the award of contracts worth over $12 billion to African PPP contractors in five years, promoting homegrown solutions to infrastructure challenges.

“Afreximbank invites Nigerian EPC contractors to partner with the bank to access facilities that support their participation in PPP projects. Afreximbank invites Nigerian PPP contractors to partner with the bank to access facilities that support their participation in PPP projects,” he said.