ICRC Enhances PPP Safeguards to Prevent Past Failures

The Infrastructure Concession and Regulatory Commission (ICRC) is tightening safeguards around public-private partnership (PPP) projects in Nigeria. Dr. Jobson Ewalefoh, the Director-General of the ICRC, announced the introduction of a standard concession agreement, mandatory provisions for periodic contract reviews, and stronger compliance monitoring.

This initiative aims to prevent the recurrence of controversial infrastructure deals. Dr. Ewalefoh highlighted that past PPP failures revealed weaknesses in risk allocation, contract drafting, and inter-agency coordination.

He noted that many problematic agreements were poorly structured and lacked essential safeguards, such as clear procedures for amendments and adequate provisions for force majeure events. The ICRC now insists on contracts that anticipate potential difficulties and establish mechanisms for resolving disputes.

Additionally, the commission emphasizes the need for periodic reviews and flexibility in contracts to address unforeseen circumstances, ensuring that every PPP is tailored to the specific risks of its sector.