Public Private Partnership: Clustering small projects can boost regional prosperity in Nigeria

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Private participation in infrastructure is arguably the most reliable approach for alternative infrastructure financing; hence, the upsurge on government collaboration with the private sector to procure public infrastructures through Public Private Partnership (PPP). While attracting private investors to participate in infrastructure procurement has become notably demanding for frontier markets for reasons well-known, different suggestions have been put forward as the right avenue to gain investors’ confidence. One such advice underscored the need for Government to look more closely at their activities and strengthen drivers deterring private investments. Though the private sector can help make markets more efficient, it is the Government that provides the structure in which the markets work and the private sector willing to participate.

As aforementioned, the focus is on how frontier markets, in desperate need of infrastructure and GDP growth, can capitalise on the opportunity investment in infrastructure provides to spur regional economic prosperity. To do this, the article supports developing appropriate structural strategies to strengthen the chances of those infrastructures –– critical to the growth of frontier markets –– but are not attractive to investors due to doubt on bankability issues. Structuring, in this context, connotes various strategies and measures Government can utilise to promote regional infrastructure to be attractive to investors for procurement through PPP. This area of discussion has remained vastly unexplored in research because of limited standard practices or governance design that can fit into frontier market structures, methods and objectives.

Nigeria, with its six geopolitical regions, is not left out of this challenge. Even though the country achieved modest economic growth since 1999 when democratic governance returned after a decade and half of the military rule; its potential to achieve higher growth is limited by lack of adequate economic and social infrastructure; especially in states outside … Read More...