Tinubu approves faster PPP approvals for projects below ₦20bn

President Bola Tinubu has authorized a major policy reform, empowering the Infrastructure Concession Regulatory Commission (ICRC) to independently approve Public-Private Partnership (PPP) projects with a value of less than ₦20 billion.

This pivotal decision is set to expedite infrastructure development across Nigeria and significantly reduce existing bureaucratic hurdles.

In a statement released on Sunday by ICRC Director-General Dr. Jobson Ewalefoh, and subsequently confirmed by the Presidency, the new policy decentralizes the approval process.

Moving forward, ministries can now directly approve PPPs under ₦20 billion, while parastatals and agencies are authorized to handle projects below ₦10 billion.

A key stipulation for these projects is that they must be entirely privately funded, without any financial guarantees from the federal government.

“This reform supports all scales of infrastructure projects, especially in critical sectors like health, education, agriculture, and housing,” Dr. Ewalefoh stated. He emphasized that smaller, yet crucial, initiatives such as rural clinics, classroom blocks, and student hostels can now progress much more quickly.

The policy also introduces Project Approval Boards (PABs) within Ministries, Departments, and Agencies (MDAs) to manage approvals under these new thresholds.

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However, larger, more complex, or cross-ministerial projects will still require the final green light from the Federal Executive Council (FEC). Importantly, all PPP projects, regardless of their value, must first undergo a rigorous review and certification process by the ICRC before receiving final approval.

This initiative aligns seamlessly with President Tinubu’s broader procurement reforms, aiming to bolster efficiency, enhance transparency, and attract greater private sector investment into Nigeria’s vital infrastructure sector.

The ICRC will continue to collaborate closely with sister agencies like the Bureau of Public Procurement (BPP), Ministry of Finance Incorporated (MOFI), and Bureau of Public Enterprises (BPE) to ensure a cohesive and effective implementation of these new guidelines.