Implications of Public/Private Partnership Policy for Infrastructural Development in Southeast Nigeria under Goodluck Jonathan.
ABSTRACT
In Nigeria, there has been an increasing campaign for and the use of public-private- partnership (PPP) in infrastructural development. While PPPs have been applied in different regions, the southeast geopolitical zone in Nigeria has mostly been ignored by the federal government.
Moreover, available evidence suggests that PPPs in Nigeria have so far produced mixed results as projects have been immersed in controversies and conflicts.
This paper examines the implications of Nigeria’s public-private partnership policy on infrastructural development in southeast Nigeria. The study is a descriptive qualitative analysis, while data was collected through secondary sources. Systems theory served as the theoretical framework.
The findings show that Nigeria’s PPP policy has not contributed to infrastructural development in the southeast. It also reveals that Nigeria’s PPP policy if holistically implemented is capable of resolving the infrastructural challenge in the zone.
The study further demonstrated that poor governance and inconsistencies in government policies undermined the success of PPPs in the region.
The paper concludes that PPPs implemented in the context of good governance, will resolve the infrastructural challenges of southeast Nigeria. It recommends good governance and de-politicization of PPP as the means of institutionalizing PPPs in the region.
TABLE OF CONTENTS
Title – – – – – – – – – i
Approval – – – – – – – – ii
Dedication – – – – – – – – iii
Acknowledgements – – – – – – – iv
Abstract – – – – – – – – vi
Contents – – – – – – – – vii
List of Tables – – – – – – – – vii
List of Figures – – – – – – – – ix
Chapter One: Introduction
1.1 Background of the Study – – – – – 1
1.2 Statement of the Problems – – – – – 14
1.3 Objectives of the Study – – – – – 18
1.4 Significance of the Study – – – – – 18
1.5 Operational Definitions – – – – – 19
Chapter Two: Literature Review
2.1 Theoretical Literature – – – – – – 22
2.1.1 The Concept of Public Private Partnership – – – 22
2.1.2 Types of PPPs — – – – – – – 41
2.1.3 Good Governance – – – – – – 44
2.2 Empirical Literature – – – – – – 53
2.2.1 Public Private Partnerships (PPPs) Applications – – 53
2.2.2 Conditions for Adopting PPPs – – – – 57
2.2.3 PPP Experience in Developing Countries – – – 62
2.2.4 Infrastructure Development in Nigeria – – – 64
2.3 Gaps in Literature – – – – – – 71
Chapter Three: Methodology
3.1 Theoretical Framework – – – – – 75
3.2 Hypotheses – – – – – – – 86
3.3 Research Design – – – – – – 86
3.4 Methods of Data Collection – – – – – 90
3.5 Methods of Data Analysis – – – – – 93
Chapter Four: Essence of Public Private Partnership in Nigeria
4.1 Evolution and Structure of Nigeria – – – – 97
4.2 Essence of PPP in Nigeria – – – – – 111
4.4 Issues in PPP – – – – – – – 131
Chapter Five: Public Private Policy and Infrastructural Development in Southeast Nigeria
5.1 Southeast Geopolitical Zone in Nigeria – – – 134
5.2 Nigeria Public Private Partnership Policy (NP4)- – – 144
5.2.1 Major Responsibilities of Government- – – – 146
5.2.2 Federal Legislative Framework – – – – 149
5.2.3 Institutional Framework – – – – – 151
5.2.4 Outline Business Case- – – – – – 156
5.2.5 Financial Due Diligence – – – – – 162
5.2.6 Economic Cost Benefits – – – – – 165
5.2.7 Project Implementation Plan – – – – – 166
5.28 Procurement Procedure – – – – – 169
5.29 Financing PPP – – – – – – – 170
5.2.10 Characteristics of PPPs in Nigeria – – – – 172
5.2.11 Key Principles of PPP in Nigeria – – – – 174
5.3 How PPP Can Transform Infrastructure in Southeast Nigeria- 177
5.4 Factors Undermining PPP in Nigeria – – – – 182
Chapter Six: Summary, Conclusion and Recommendations
6.1 Summary – – – – – – – 188
5.2 Conclusion – – – – – – – 196
5.3 Recommendations – – – – – – 200
Bibliography – – – – – — – 203
INTRODUCTION
1.1 Background to the Study
Good roads, canals, and navigable rivers, by diminishing the expense on carriage, put the remote parts of the country more nearly upon a level with those in the neighborhood of the town. They are upon that account the greatest of all improvements.
They encourage the cultivation of the remote, which must always be the most expensive circle of the country. They are advantageous to the town, by breaking down the monopoly of the country in its neighborhood. They are advantageous even to that part of the country.
Though they introduce some rival commodities into the old market, they open many new markets to its produce, (Adam Smith, 1973:147).
According to Oyedele (2012), the linkages between infrastructure and economic growth are multiple and complex. Not only does infrastructure affect production and consumption directly, it also creates many direct and indirect externalities.
It also involves large flows of expenditure, thereby creating additional employment. Studies have shown that infrastructure can have a significant impact on output, income, employment, international trade, and quality of life. Infrastructure development can reduce stress and promote good health.
It will also reduce crime level. Infrastructure has always played a key role in integrating economies within a region. Well developed and efficient infrastructure is essential for a region’s economic development and growth.
In a dynamic concept, infrastructure is seen as a regional public good that moves factors of production within and across countries, thus helping the region attain higher productivity and growth.
Poverty, corruption, debt, lack of infrastructure and demand for industrial development are today the main issues affecting the progress of most developing nations around the world, including Nigeria.
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