Nigeria faces one of Africa’s most severe infrastructure deficits, spanning power supply, transport networks, water systems, and industrial capacity. Rapid economic growth, urbanization, and a rising population have made modern public infrastructure and large-scale manufacturing facilities more urgent than ever. The government’s development agenda depends on closing this gap – from building efficient ports and refineries to establishing food-processing zones and reliable power grids. However, traditional public funding is insufficient to meet these needs. In response, Nigeria has turned to innovative financing and delivery mechanisms, including public-private partnerships (PPPs), privatisation of state assets, and strategic incentives (such as land grants and local content policies) to attract both domestic and foreign investment. At the core of this shift is a complex network of laws, regulations, and institutions. This article breaks down the legislative framework governing government-backed projects and the procedural framework for how infrastructure and industrial projects are planned and executed, at both federal and sub-national levels in Nigeria.
Legislative Framework for Government-Backed Projects
Nigeria has established an extensive legal framework to guide the development of public infrastructure and industrial projects. These laws and regulations ensure that projects are transparently procured, properly funded, and aligned with national development goals. They also define the roles of key institutions. Below are the major components of this legislative framework:
Budgeting and Appropriation Laws
All government-backed projects must be integrated into approved budgets by the legislature. The Constitution of Nigeria and the Fiscal Responsibility Act (FRA) 2007 mandate that public expenditures (especially capital projects) be appropriated yearly through budget laws. At the federal level, the executive prepares an Appropriation Bill (annual budget) which must be passed by the National Assembly. Similarly, each state government’s budget requires approval by the State House of Assembly. This appropriation process serves as a legal gatekeeper for project funding and legitimacy. The FRA further requires that government borrowing be used only for capital expenditure and human development, and it sets limits to ensure debt sustainability[1]. (For instance, the FRA caps annual borrowing at 3% of GDP, a rule often waived in recent years[1].) In practice, budget preparation begins months before the fiscal year: ministries and departments draft project estimates aligned with a Medium-Term Expenditure Framework, the executive consolidates these into a budget proposal, and the legislature reviews and amends the plans before final approval. Once signed into law, the budget authorizes funding for projects, and no public project can commence without this appropriation.
Public Procurement Act and Regulations
Nigeria’s principal law for awarding public contracts is the Public Procurement Act (PPA) of 2007, which applies to federal procurements (many states have enacted similar procurement laws for state-funded projects). The PPA 2007 established the Bureau of Public Procurement (BPP) as the regulatory authority to ensure that public contracts are awarded through open, competitive, and transparent processes[2][3]. The law enshrines principles of value-for-money and fairness, requiring government Ministries, Departments and Agencies (MDAs) to conduct competitive bidding except in special cases allowed by law. The BPP is empowered to issue procurement guidelines, maintain a database of standard prices and qualified contractors, and certify major contracts before award[2]. Notably, BPP issues a “No Objection” certificate for any federal contract above certain thresholds, attesting that due process was followed[3]. At the sub-national level, states like Lagos, Kaduna, and others have their own Public Procurement Laws and Bureaus mirroring the federal provisions, ensuring procurement at state level also meets transparency standards. To bolster transparency, the BPP operates the Nigeria Open Contracting Portal (NOCOPO), an online platform disclosing procurement plans and awards. This open data approach has reportedly saved the government significant sums by improving price intelligence and curbing inflated costs[4][5]. In 2025 alone, NOCOPO’s enhanced oversight helped Nigeria save over ₦173 billion (about $155 million) in procurement costs, freeing funds for other critical projects[4][5].
Public-Private Partnership (PPP) Framework
To leverage private sector capital and expertise, Nigeria in 2005 enacted the Infrastructure Concession Regulatory Commission (ICRC) Act, along with a National Policy on PPP (2009). This framework governs how the government can partner with private investors to develop infrastructure or industrial projects. The ICRC Act established the Infrastructure Concession Regulatory Commission (ICRC), which oversees and regulates all federal PPP projects[6]. Several state governments have also set up their own PPP laws or units; for example, Lagos State passed a PPP law in 2011 and created an Office of PPP. The ICRC’s mandate includes certifying the feasibility and bankability of proposed PPP projects, issuing guidelines for PPP contracts, and ensuring that due diligence (such as feasibility studies and value-for-money analysis) is carried out before any concession agreement is signed[6]. Under this legal framework, PPP projects must undergo a structured development process: typically starting with an Outline Business Case (pre-feasibility study) approved by ICRC, followed by a Full Business Case and competitive procurement of a private partner, in line with procurement laws. Importantly, PPP arrangements can take various forms – from government-paid contracts (e.g. availability payments for a road or hospital) to user-paid concessions where a private operator charges users (e.g. toll roads or utilities). The financing structure of PPPs also varies: some are fully privately financed (the ideal in a mature market), while others involve co-financing or guarantees by government. Recent policy has emphasized that PPP projects should be mostly financed by the private sector, with minimal reliance on public funds or debt. In fact, a new directive in 2025 requires that all federal PPP projects be fully privately funded with no direct treasury commitment, except where absolutely necessary[7].
PPP Approvals: Historically, every PPP contract needed approval by the Federal Executive Council (FEC) – the cabinet – which sometimes caused bottlenecks for smaller projects. However, in mid-2025 the Presidency introduced higher approval thresholds to fast-track small and mid-sized PPP projects. Under this reform, federal ministries can approve PPP projects under ₦20 billion, and agencies/parastatals can approve those under ₦10 billion, without going to FEC[8][9]. Instead, such projects are vetted by new Project Approval Boards (PABs) within the MDAs, under ICRC’s guidance[10]. (Any project above these thresholds or involving multiple ministries still requires FEC approval[11].) This change is aimed at speeding up infrastructure delivery and encouraging private investment by removing bureaucratic delays on smaller PPPs[12][10]. Whether large or small, all PPP projects still must be reviewed and certified by the ICRC to ensure they meet technical, legal, and financial standards before final sign-off[7].
Privatisation and Asset Monetisation Laws
Nigeria’s drive to involve the private sector also extends to privatisation – the transfer of government-owned enterprises or assets to private ownership/management. The key law here is the Public Enterprises (Privatisation and Commercialisation) Act of 1999, which created the National Council on Privatisation (NCP) and its secretariat, the Bureau of Public Enterprises (BPE)[13]. The Act categorises public enterprises into those to be fully or partially privatised and those to be commercialised (reformed but retained in government ownership). The BPE is charged with implementing the federal privatisation program – divesting government shares in state-owned companies, concessioning infrastructure to private operators, and liberalising sectors to promote competition[13]. Over the past decades, BPE has overseen the sale or concession of many enterprises in sectors like telecommunications, steel, mining, banking, and power. For example, it spearheaded the unbundling and sale of the state telecom company and the unbundling of the Power Holding Company of Nigeria’s generation and distribution companies in the 2010s. It also handles transactions such as port terminal concessions and the ongoing reforms of the rail and steel sectors. BPE’s process is governed by law – it typically involves the advertisement of opportunities, pre-qualification of bidders, competitive tendering, and approval by the NCP/FEC for final outcomes.
In recent years, asset monetisation has gained attention as an avenue to raise funds for new projects. This involves leveraging idle or underutilised government assets (like real estate, infrastructure, or equity stakes in companies) to generate revenue or investment. The Ministry of Finance Incorporated (MOFI), recently revitalised, now leads this strategy. MOFI, originally established decades ago to hold government investments, has been retooled into an active manager of federal assets. It holds the government’s shares in over 130 enterprises (ranging from oil and gas companies to banks and industries) and is tasked with restructuring these holdings for better returns. MOFI’s new leadership has launched a National Asset Registry to catalog all government assets and is developing a National Asset Monetisation Strategy[14][15]. Through this framework, the government can decide which assets to sell outright, which to concession or lease, and which to transform via public-private joint ventures. For instance, monetisation could include selling minority stakes in state-owned companies via the stock market, entering lease-to-own agreements for public facilities, or partnering with private firms to inject capital into moribund industries. The overall goal is to unlock the value of these assets (estimated in the tens of trillions of naira) and channel the proceeds into new infrastructure and industrial development[14]. MOFI works closely with BPE in this space – generally, BPE handles the transaction process for privatisation, while MOFI ensures the government’s investment interests are secured and reinvested wisely. Notably, privatisation isn’t limited to the federal level: some state governments have also privatised or commercialised their own enterprises (like state-owned hotels, industries, or utilities) through state privatisation bureaus or committees, though on a smaller scale than the federal program.
Sector-Specific Regulatory Laws
Beyond these general frameworks, Nigeria’s infrastructure and industrial projects are also shaped by sector-specific legislation and regulators. These laws establish the regulatory agencies for each sector and set the conditions under which projects in those sectors must operate (licenses, tariffs, safety standards, etc.). A few key examples:
Power Sector: The Electric Power Sector Reform Act of 2005 (EPSRA) – now repealed and replaced by the Electricity Act 2023 – liberalized Nigeria’s electricity sector. The 2005 law unbundled the national power company and created the Nigerian Electricity Regulatory Commission (NERC) as an independent regulator for power. The new Electricity Act 2023 goes further to allow state governments and private investors to participate in electricity generation, transmission, and distribution under a more decentralized regime. It also provided for an Independent System Operator to manage the national grid, which led to the recent unbundling of the Transmission Company of Nigeria into a Transmission Service Provider and an independent grid operator (the Nigeria Independent System Operator)[16][17]. In essence, the power sector laws set the rules for any power generation or distribution project, whether government or privately owned – including licensing by NERC and compliance with technical standards.
Petroleum Sector: The Petroleum Industry Act (PIA) 2021 overhauled the oil and gas industry’s legal framework[18]. It created two new regulators – the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for upstream oil/gas activities, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for midstream and downstream. The PIA modernized fiscal terms for petroleum projects and requires that any new refinery, petrochemical plant, or similar project secure the appropriate licenses and adhere to environmental and community provisions. For example, investors in a large-scale refinery or gas processing facility (which are critical industrial infrastructure) must follow the licensing process and fiscal regime laid out in this Act.
Telecommunications: The Nigerian Communications Act 2003 established the Nigerian Communications Commission (NCC), which regulates telecoms infrastructure. Projects involving telecoms (e.g. broadband fiber networks, data centers) require NCC approvals, spectrum licenses if applicable, and must conform to the Act’s competition and pricing rules.
Transport and Logistics: Key agencies include the Nigerian Ports Authority (NPA) for port infrastructure, the Nigerian Maritime Administration and Safety Agency (NIMASA) and Nigerian Shippers’ Council (NSC) for shipping/logistics, and the Nigerian Railway Corporation (NRC) Act for railway development. Each of these operates under statutes that empower them to issue concessions, set tariffs, and enforce standards. For instance, port terminal concessions to private operators are done under the NPA Act and regulatory oversight of the NPA/NSC; any new railway project (like a state investing in rail mass transit) must align with the NRC Act or recent railway reforms that allow state participation.
Industrial and Manufacturing Policies: While Nigeria does not have one omnibus “Manufacturing Act,” industrial projects are influenced by policies like the Nigeria Industrial Revolution Plan and incentives codified in laws such as the Nigerian Investment Promotion Commission (NIPC) Act and various tax laws. These provide tax holidays (pioneer status), import duty waivers for equipment, and other incentives to encourage establishing manufacturing plants. Land for industrial projects is governed by the Land Use Act 1978, which vests land ownership in state governors – meaning that large manufacturing projects often require collaboration with state governments for land acquisition or allocation. In recent times, governments (federal or state) have offered strategic land allocations to investors for factories or industrial parks as part of MOUs, even though this may not be under a specific statute.
In summary, Nigeria’s legislative framework for infrastructure and industrial projects is multi-layered. It spans budget laws (ensuring projects fit within fiscal plans), procurement laws (ensuring open and fair contracting), PPP and privatisation laws (bringing in private investment), and sector laws (ensuring compliance with industry-specific requirements). These laws apply across federal and state levels – with state governments either adopting similar statutes or working within the federal frameworks – to drive development in their jurisdictions.
Table 1 below provides an overview of key laws and institutions in Nigeria’s infrastructure development landscape:
| Law / Policy | Purpose and Scope | Key Institution(s) Created |
| Appropriation Acts (Annual Budgets) | Provides legal authorization for government spending on projects each year; passed by legislature. | Ministry of Finance Budget Office; National & State Assemblies (oversight) |
| Fiscal Responsibility Act, 2007 | Mandates prudent fiscal management – e.g. limits borrowing to 3% of GDP, requires borrowing for capital projects[1]. Ensures capital projects are budgeted and debt is sustainable. | Fiscal Responsibility Commission; Debt Management Office (coordination) |
| Public Procurement Act, 2007 | Establishes transparent rules for public procurement and value-for-money in contracts. | Bureau of Public Procurement (regulator) |
| ICRC Act, 2005 & National PPP Policy (2009) | Provides legal framework for PPPs and concessions, guiding how MDAs partner with private investors. | Infrastructure Concession Regulatory Commission (regulator) |
| Public Enterprises (Privatisation) Act, 1999 | Governs privatisation/commercialisation of government enterprises and assets. | National Council on Privatisation; Bureau of Public Enterprises (implementation agency) |
| Ministry of Finance Incorporated (MOFI) [Institution] | Holds and manages government investments in corporations; not established by a single Act (origin in 1950s) but revitalised by policy to drive asset monetisation. | MOFI Board (Ministry of Finance Incorporated) |
| Electricity Act, 2023 (formerly EPSRA 2005) | Liberalises the electricity sector, allows private & state involvement, establishes market rules. | Nigerian Electricity Regulatory Commission; TCN (now unbundled into ISO & TSP) |
| Petroleum Industry Act, 2021 | Overhauls oil & gas sector governance and fiscal terms; creates new regulatory commissions for upstream and mid/downstream. | NUPRC (upstream regulator); NMDPRA (mid/downstream regulator) |
| Nigerian Communications Act, 2003 | Regulates telecoms and ICT infrastructure development and services. | Nigerian Communications Commission (regulator) |
| Various sector agencies’ Acts (e.g., NPA, NRC) | Laws establishing bodies for transport (ports, railways, roads), aviation, water resources, etc., often with powers to enter PPPs or commercial arrangements. | NPA, NRC, Federal Ministry of Works, etc. |
| Investment and Securities Act, 2007 | Regulates capital markets; relevant for issuing infrastructure bonds or equity for projects. | Securities and Exchange Commission (capital markets regulator) |
| Nigeria Sovereign Investment Authority Act, 2011 | Establishes NSIA (sovereign wealth fund) which invests in strategic infrastructure projects (via its funds like the Infrastructure Fund). | Nigeria Sovereign Investment Authority |
| Land Use Act, 1978 | Governs land ownership and acquisition; state governors hold land in trust and can allocate for public purposes or investors. | State Land Bureaus; Governors (land consent) |
Table 1: Key legislation and institutions shaping public infrastructure and industrial projects in Nigeria.
Procedural Framework for Infrastructure and Industrial Project Delivery
Having outlined the legal environment, it is equally important to understand the procedural framework – i.e. how projects move from ideas to reality within the institutional setup. This involves multiple stages: project planning, funding, procurement or partnership formation, and implementation. While processes vary depending on whether a project is a purely government-funded work, a PPP, or a privatisation, they all aim to ensure that projects are viable, properly approved, and executed with oversight. Below is a step-by-step look at how government-backed infrastructure and large-scale manufacturing projects are typically developed and executed in Nigeria:
1. Project Conception and Planning
Most projects begin at the level of a Ministry or Agency (federal or state) identifying a need – for example, a new highway, a power plant, or an industrial park. In the traditional public sector route, the Ministry/Agency conducts initial studies and prepares a project proposal or feasibility report. This proposal must then be incorporated into government plans and budgets. At the federal level, this means inclusion in the Medium-Term Expenditure Framework (MTEF) and the annual budget proposal. Federal ministries work with the Ministry of Budget and National Planning and the Budget Office to get their capital projects listed with cost estimates. Similarly, a state ministry would seek to include the project in the state’s budget. Planning also involves prioritization via national or state development plans; for instance, Nigeria’s National Integrated Infrastructure Master Plan (NIIMP) (2014–2043) provides a strategic blueprint for priority projects across sectors, and the newer National Development Plans also guide sectoral investments.
Stakeholder Consultation: For large projects, this stage may involve stakeholder consultations and preliminary environmental impact assessments to ensure the project’s viability and public acceptance. Projects with environmental or social impact (e.g. large factories, dams, highways) are required to undergo an Environmental Impact Assessment (EIA) process under the EIA Act and NESREA regulations, obtaining clearance before proceeding to budgeting or procurement.
2. Budget Approval and Funding Allocation
After planning, a project needs funding commitment. If it is to be government-financed (fully or partly), it must appear in the Appropriation Act (budget) for the year it will commence. The budget approval process for federal projects is elaborate: by around September each year, the President submits the budget draft (including capital projects and their costs) to the National Assembly. Legislative committees scrutinize each project – questioning its necessity and cost – and can remove or adjust items. Once the National Assembly passes the budget and the President signs it, funds are officially allocated. At that point, the Ministry of Finance (and state Finance ministries for state budgets) can release funds, usually on a quarterly basis, to the respective MDA for the project. In Nigeria, capital budget implementation is monitored to ensure MDAs utilize funds for the specified projects; unutilized funds may be rolled over or lost at year-end, adding pressure to implement projects on time.
For projects not fully funded by the budget, alternative financing mechanisms come into play. Some large infrastructure projects, like major highways or power plants, are financed through external loans or bonds. In such cases, the Debt Management Office (DMO) evaluates the project’s loan terms and ensures it fits within debt limits. The DMO must approve any new external borrowing by federal or state governments and often negotiates terms with lenders (such as the World Bank, Chinese Exim Bank, etc.)[19][1]. If borrowing requires a sovereign guarantee (government backing for a loan taken by a state or private concessionaire), that guarantee must be cleared by the DMO and Federal Ministry of Finance, and often approved by the legislature as well. Another avenue is the capital market: the government or a project-specific Special Purpose Vehicle can issue infrastructure bonds (including Sukuk Islamic bonds or green bonds). The Securities and Exchange Commission (SEC) regulates such issuances to protect investors and ensure transparency[20]. In recent years, Nigeria has successfully raised funds via sovereign Sukuk bonds to finance road projects, under SEC’s oversight.
For PPP projects, private financing is expected. The government’s role is to enable the project rather than directly finance it. Still, the government might provide viability gap funding, land, or tax incentives to make a project bankable. An example is a concession to build an industrial park where a state government provides land and access roads, while a private developer finances the factories and utilities. The ICRC Act and PPP policy require that a PPP project’s financial structure be vetted for value-for-money – meaning the long-term cost to government (if any, e.g. availability payments or tax breaks) should be less than the cost of public procurement. Increasingly, institutions like the Nigeria Sovereign Investment Authority (NSIA) and the Infrastructure Corporation of Nigeria (InfraCorp) contribute to financing priority projects. NSIA invests part of Nigeria’s sovereign wealth fund in domestic infrastructure (for example, it co-invested in the Second Niger Bridge project), while InfraCorp – co-owned by the CBN, NSIA, and Africa Finance Corporation – is a new vehicle tasked with mobilizing up to ₦15 trillion for infrastructure by blending public and private capital.
3. Procurement and Partnership Formation
Once a project has necessary planning approval and budget or financing lined up, the next stage is to procure a contractor or private partner to execute it:
- Traditional Public Procurement Process: For a government-executed project (e.g. the Ministry of Works paving a road using budget funds), the procuring MDA must adhere to the procedures of the Public Procurement Act (or the equivalent state procurement law). This involves preparing bidding documents and publishing a tender (often on the procurement portal or newspapers) inviting contractors to bid. There is usually a prequalification step for complex projects to shortlist capable firms. Bids are evaluated by a Tender Board within the MDA (or a Parastatal Tenders Board for agencies) based on technical and financial criteria. The winning bid must meet all requirements and offer the best value (not just lowest price if quality differs). Before the contract can be awarded, the Bureau of Public Procurement reviews the process for compliance. For high-value contracts, the BPP issues the “No Objection” certificate as noted earlier[3]. Finally, federal contracts above a certain threshold (running into hundreds of millions of naira) are escalated to the Federal Executive Council (FEC) for approval of the award. Upon FEC’s approval, the contract can be signed and execution begins. This entire cycle from bid announcement to FEC sign-off can take several months. The government has also provided alternatives for urgent needs: the procurement laws allow methods like selective tendering or emergency procurement in special cases, but these still require BPP clearance and often subsequent justification to auditors. After contract award, the project implementation is supervised by the MDA’s engineers or project managers, and progress is reported. Payments to contractors are made per milestones, overseen by the Office of the Accountant-General to ensure they align with the budget.
- PPP Project Development Process: The PPP route is more complex upfront but shifts execution and financing risks to the private sector. It typically follows a project lifecycle under ICRC’s guidance:
- Project Identification & Outline Business Case (OBC): An MDA identifies a project suitable for PPP (e.g. a toll highway, an industrial estate, a power plant) and conducts an OBC – a preliminary feasibility study outlining project scope, demand, cost estimates, and potential PPP structure. The OBC is submitted to the ICRC for review. The ICRC checks that the project is feasible as a PPP and delivers value for money compared to public procurement. Once the ICRC issues an OBC compliance certificate, the project can move forward[21].
- Project Structuring & Full Business Case: With OBC approval, the MDA, often with transaction advisors, structures the PPP details (technical specifications, financial model, risk allocation, contract terms). They then prepare a Full Business Case (FBC), which is essentially a final feasibility report and business plan, including the preferred bidder’s offer (if a bidder has been selected) and the full contract draft. The FBC must again be vetted by ICRC for compliance. If it checks out, ICRC issues an FBC compliance certificate.
- Competitive Procurement: In parallel to FBC preparation, the MDA launches a tender to select a private partner (concessionaire). This follows procurement best practices – an open advertisement or a pre-qualified bidding amongst interested firms. For complex PPPs, a two-stage bidding (request for qualification then request for proposals) is common. BPP’s rules apply here too, meaning the process must be competitive. By the end of this stage, a Preferred Bidder is chosen to invest in and execute the project.
- Approval and Contracting: The outcome of the PPP procurement (along with the FBC) is presented for approval. Under the traditional regime, this meant seeking Federal Executive Council approval for federal projects (or Governor/State Executive Council approval for state PPP projects). As updated in 2025, smaller PPP projects can be approved by the Ministry or Agency’s own board if under the set thresholds (₦10–20 billion) with ICRC’s oversight[8][9]. For larger projects, FEC (or the state’s Executive Council) approval is required. Once approved, the government signatory (e.g. the minister or agency head) and the private company formally sign the PPP agreement. Financial Close follows, where the private partner secures all financing commitments.
- Implementation and Monitoring: The private partner proceeds to build and operate the facility according to the contract terms. The contract could be a concession (build-operate-transfer), BOT, lease, or other PPP model. The ICRC, alongside the responsible MDA, monitors the project throughout its life to ensure contractual compliance. PPP contracts often span 15–30 years, so oversight mechanisms (reporting requirements, performance audits, etc.) are crucial. The ICRC Act gives the Commission the authority to oversee compliance and even intervene if a PPP is failing. Additionally, the ICRC has a PPP Contracts Disclosure Portal where key information about signed PPP agreements is published for transparency.
This PPP process is designed to ensure that only well-prepared, bankable projects reach the market and that the government’s interests (and by extension, the public interest) are protected in the long run. It also provides checks at multiple stages via the ICRC and federal approvals to prevent hasty or dubious deals.
- Privatisation Process: Projects that involve selling government stakes or enterprises – such as a government-owned factory or utility being privatised – follow a different but related path. The National Council on Privatisation (headed by the Vice President) first approves that the asset should be privatised or concessioned. The BPE then kick-starts the transaction: it hires advisors to value the asset and recommend the mode of privatisation (outright sale, initial public offering, core investor sale, management contract, etc.). An Information Memorandum is prepared to inform prospective investors. Bids or expressions of interest are invited publicly. For instance, if a steel rolling mill is up for privatisation, BPE will advertise for investors and perhaps pre-qualify companies with experience in steel. Bids are submitted and evaluated, and a preferred bidder is chosen based on criteria like offer price, technical/managerial capability, and investment plan. The outcome is then presented to the NCP (and often FEC) for approval. Once approved, a sale purchase agreement or concession agreement is signed, and the asset is handed over following payment and fulfillment of conditions. Post-privatisation, BPE and sometimes MOFI (as shareholder) will monitor the enterprise for some time to ensure the new owners fulfill any covenants (such as not selling off assets immediately, or investing a promised amount in expansion). An example of this process in action is the concession of Nigeria’s major airports or the ongoing efforts to involve private concessionaires in Nigeria’s railways and airports – these are handled via competitive bidding overseen by BPE and the sector ministry, with final approvals at high levels.
4. Project Implementation and Oversight
After contracts are signed – whether a traditional works contract, a PPP agreement, or a privatisation sale – the execution phase begins. Project management and oversight are critical at this stage to ensure that the public actually gets the intended benefits (a completed road, a functioning power plant, etc.) on time and within budget.
For traditional public works, the responsible Ministry/Agency supervises the contractor. They may hire engineering consultants for design and supervision. The BPP may conduct procurement audits mid-way or after completion to review if the contract was executed according to terms[22]. Also, the Infrastructure Delivery Coordination Unit in the Presidency (established in recent years) tracks progress of key infrastructure projects to troubleshoot delays. The Office of the Auditor-General and legislative committees also have the power to audit project expenditures and verify deliverables post-completion.
For PPP projects, performance monitoring is written into the contract. The private operator often must meet certain performance indicators (for example, road quality standards or power plant availability) or face penalties. The contracting authority (MDA) usually has a PPP contract management team that oversees compliance throughout the project life. The ICRC requires periodic reports on PPP projects and can conduct inspections. Some PPP agreements even provide for independent regulators or monitors to oversee service quality (especially in utilities). At the end of a concession term, if it’s a build-operate-transfer model, the facility is to be handed back to the government in good condition, so the contract will outline the handover inspection process.
In privatisation cases, if the government retains a minority stake via MOFI or otherwise, it may sit on the board as a shareholder and thereby have insight into company performance. For fully privatised entities, regulatory bodies ensure they operate in line with sector regulations. For example, after power sector privatisation, NERC monitors the electricity distribution companies’ performance and can sanction them for failing to meet customer service standards.
Crucially, inter-agency coordination is part of the procedural framework. A large project might involve multiple regulators and approvals. Consider a hypothetical large-scale food processing factory being set up through a PPP in an agriculture processing zone: the project might require approvals from the state government for land (Governor’s consent via Land Use Act), environmental approval from Federal Ministry of Environment (EIA), infrastructure support from the Federal Ministry of Works for access roads, financing from a development bank (needing DMO sign-off if there’s a government guarantee), and regulation by the Standards Organisation of Nigeria (for food safety standards) once operational. Navigating these procedural requirements can be complex, and Nigeria has been working to streamline it – for instance, through One-Stop Investment Centers at the NIPC for investors, and Executive Orders aimed at promoting “Ease of Doing Business” by simplifying government agency interactions.
5. Involvement of Sub-National Governments
Throughout both the legislative and procedural frameworks, state and local governments in Nigeria play an essential role, especially for projects at those levels. States control land and many permits, and they also undertake infrastructure projects using their own budgets or PPPs. In recent years, states have begun to mirror federal initiatives: many states now have budget transparency laws, procurement laws, and debt management committees. Some have created State PPP Units or Agencies to attract private investment. For example, Lagos State has successfully concessioned a power distribution embedded network and toll bridge within its territory under its own legal framework. That said, states often collaborate with federal institutions – they may seek BPP’s advice on procurement best practices, or engage the ICRC’s support on a state toll road PPP (the ICRC’s mandate allows it to guide states on request[23]). The Nigeria Governors’ Forum has worked with ICRC to adopt a unified approach to PPPs across states[23], given that a consistent framework makes it easier for investors to navigate opportunities in different states.
Emerging Reforms, Challenges, and Opportunities
Nigeria’s legal and procedural frameworks for public projects are continually evolving. The government recognizes that closing the infrastructure and industrial gap requires not just robust laws, but effective implementation and constant improvement. Several recent developments highlight the direction of reform:
- Power Sector Restructuring: As mentioned, the Electricity Act 2023 is a game-changer, enabling states and private firms to generate, transmit, and distribute power with less federal monopoly. The unbundling of the Transmission Company of Nigeria into independent units in 2024–2025[16][17] aims to improve grid management and attract investment into the transmission backbone. This should pave the way for more reliable power supply, which is crucial for manufacturing growth.
- Public Procurement and Local Content: In 2025, the government introduced a “Nigeria First” policy in public procurement, directing that local manufacturers and service providers be prioritized in government contracts[24][25]. Under this policy, MDAs are barred from buying foreign goods if certified Nigerian alternatives exist, unless a waiver is obtained[24]. This initiative is designed to boost local industry (including large-scale manufacturers of building materials, equipment, etc.) by using the government’s purchasing power to stimulate demand for domestic products. It complements existing local content laws in sectors like oil & gas and ICT. The BPP has been tasked with enforcing this through procurement guidelines and maintaining a register of certified local suppliers[25]. For the manufacturing sector, this policy could be a boon, incentivizing investors to set up local production knowing the government is inclined to buy Nigerian-made goods.
- Digital Platforms and Transparency: Beyond NOCOPO, other digital tools are being deployed. The BPP, for instance, launched an e-procurement portal and e-certification system for procurement officers[26]. The ICRC’s PPP Disclosure portal is making PPP contract information public. These increase transparency and could reduce bureaucratic red tape. Institutional Coordination and Capacity: A persistent challenge is ensuring all these institutions – BPP, ICRC, BPE, MOFI, DMO, sector regulators, and the MDAs – work in sync. Overlaps exist (for example, between BPE and MOFI in asset management, or between ICRC and BPP in PPP procurements), which can cause delays or confusion. Efforts are underway to clarify roles through memorandums of understanding and possibly legislative updates. Building capacity is also key: many MDAs require training to develop bankable PPP projects or manage complex contracts. The ICRC regularly conducts capacity-building workshops for MDA officials to improve PPP project preparation. Development partners (like the World Bank and AfDB) are supporting training and providing advisory services to strengthen these processes.
- Financing Innovations: The government is exploring creative financing to supplement scarce public funds. One approach is blended finance, where public money (including from NSIA or development banks) is used to de-risk projects and attract private investors. Credit enhancement tools like partial risk guarantees, infrastructure credit funds, and viability gap funding schemes are being expanded to make more projects bankable. In 2021, for example, Nigeria operationalized an Infrastructure Credit Guarantee Company in collaboration with the private sector to provide guarantees for local bond financing of projects. The Central Bank’s Real Sector Support Facility and similar intervention funds continue to offer low-interest loans to investors in infrastructure-adjacent manufacturing (e.g. cement, steel) to boost local capacity.
- Sovereign Wealth and Strategic Funds: The Nigeria Sovereign Investment Authority (through its Nigeria Infrastructure Fund) has taken equity stakes in major projects (like motorways and agriculture infrastructure). Also, InfraCorp, launched with ₦1 trillion seed capital, is expected to catalyze up to $36–40 billion in infrastructure investments by directly developing projects and attracting co-investors[27][28]. In mid-2025, President Tinubu even designated InfraCorp as the lead developer for a new Lagos-Calabar coastal highway project[29] – indicating a more hands-on role for these fund vehicles in delivering projects.
- Updating Legal Frameworks: Some outdated laws are being reviewed. The Public Procurement Act is slated for amendments to address loopholes and possibly institutionalize e-procurement. The Fiscal Responsibility Act may be strengthened (as advocates have called for) to enforce stricter debt and project accountability rules[30][31]. New policies on tolling, maintenance, and project sustainability are also in discussion to ensure that once infrastructure is built, it is properly operated and maintained (Nigeria has seen many assets fall into disrepair post-construction due to unclear maintenance funding).
Despite these efforts, challenges remain. Corruption and political interference can undermine due process – for instance, there are instances of projects being awarded to less qualified contractors due to patronage. Inter-agency rivalry or lack of communication can slow approvals (a PPP might languish if the ministry and ICRC aren’t aligned on objectives). Capacity constraints mean some states struggle to prepare bankable projects, leading to failed bids or stalled projects. Also, domestic capital mobilization is still low – Nigerian pension funds and banks, while growing, invest only a small fraction of their assets in domestic infrastructure or industry, partly due to perceived risks. Strengthening the regulatory framework to give investors confidence (e.g. enforceable contracts, fair tariffs, reliable dispute resolution) is an ongoing task.
Conclusion: Towards a Cohesive Development Framework
Nigeria’s legislative and procedural frameworks for public infrastructure and large-scale manufacturing projects have evolved significantly, laying a solid foundation for development. The country now has key laws and institutions in place to promote transparency, efficiency, and private sector participation – from the Public Procurement Act and BPP ensuring open tenders, to the ICRC enabling PPPs, the BPE driving privatisation, and various regulators safeguarding sectoral interests. The procedural mechanisms – budget planning, project appraisal, competitive bidding, and rigorous oversight – are designed to translate these laws into tangible projects on the ground.
Ultimately, the effectiveness of this framework rests on implementation. Strong laws mean little if no strict enforcement. The encouraging news is that reforms are targeting the right areas: reducing bottlenecks (as seen with quicker PPP approvals), encouraging local industry (through procurement preferences and industrial policies), and improving transparency (via open contracting and disclosures). To truly unleash an infrastructure and industrial revolution, Nigeria will need to maintain momentum on these reforms and ensure coordination across federal and state levels. Federal projects must align with state development needs, and vice versa, in a country where each state’s growth can be a building block for national progress.
For investors and the general public, understanding this landscape is important. Investors can navigate opportunities better knowing the required legal processes, and citizens can hold authorities accountable by knowing “how the system should work.” If Nigeria continues to strengthen its legislative and procedural frameworks – emphasizing accountability, clarity, and investor-friendliness – it stands a better chance of attracting the massive investments needed and of delivering projects that materially improve people’s lives. The drive for infrastructure and industrial development is indeed a marathon, not a sprint, but with each reform and each successfully completed project, Nigeria moves closer to bridging its infrastructure gap and achieving inclusive economic growth.
REFERENCES
[1] [19] [30] [31] Calls heighten for review of Fiscal Responsibility Act as debt soars – Businessday NG
[2] [3] [22] PUBLIC PROCUREMENT ACT 2007 F
https://www.bpp.gov.ng/wp-content/uploads/2017/11/Public-Procurement-Act-2007pdf.pdf
[4] [5] [24] [25] [26] Nigeria Open Contracting Portal saved govt N173 billion in first half 2025 – BPP – Nairametrics
[6] [20] AN ANALYSIS OF THE LEGAL AND REGULATORY FRAMEWORK FOR PROJECT FINANCING IN NIGERIA
[7] [8] [9] [10] [11] [12] Tinubu empowers ICRC to approve PPP projects under N20 billion without FEC approval – Nairametrics
[13] Bureau of Public Enterprises (Nigeria) | Devex
https://www.devex.com/organizations/bureau-of-public-enterprises-nigeria-132621
[14] [15] ‘Our target is to unlock N100tr national assets’ – The Nation Newspaper
https://thenationonlineng.net/our-target-is-to-unlock-n100tr-national-assets/
[16] [17] Nigeria unbundles TCN, launches $30bn power push
https://sweetcrudereports.com/nigeria-unbundles-tcn-launches-30bn-power-push/
[18] Nigeria’s Petroleum Industry Act: Addressing old problems, creating …
[21] [PDF] National Policy on Public Private Partnership | Estate Intel
https://estateintel.com/wp-content/uploads/2016/05/National-Policy-on-Public-Private-Partnership.pdf
[23] About NII3P
https://www.nii3p.org/about-niip3/
[27] $37b InfraCorp in limbo five years after N1 trillion investment
https://guardian.ng/news/37b-infracorp-in-limbo-five-years-after-n1-trillion-investment/
[28] InfraCorp, Others Sign Deal on Infrastructure Fund
https://www.nipc.gov.ng/2022/04/22/infracorp-others-sign-deal-on-infrastructure-fund/
[29] President Tinubu Appoints Infracorp as Lead Developer of Nigeria’s …
