MDAs Can Now Approve Smaller PPP Projects Without FEC Nod
President Bola Tinubu has approved a major reform that decentralises Nigeria’s public-private partnership (PPP) project approval process, empowering ministries, departments, and agencies (MDAs) to approve lower-value projects independently.
Under the new directive, announced by Jobson Ewalefoh, director-general of the Infrastructure Concession Regulatory Commission (ICRC), PPP projects valued below N20 billion for ministries and N10 billion for parastatals can now be approved internally by project approval boards (PABs), provided they comply with ICRC guidelines and obtain certification.
“This approval is a game-changer, especially for sectors like health, education, agriculture, and housing,” Ewalefoh said in Abuja on Sunday.
Previously, all PPP projects, regardless of value, required approval from the federal executive council (FEC), a process critics say slowed down project implementation and limited MDA participation.
“Only projects exceeding the thresholds or involving multiple MDAs will require FEC approval,” Ewalefoh explained.
He emphasised that all PPP initiatives must still be reviewed and certified by the ICRC before any approval is granted. “The ICRC must issue certificates of compliance before any PPP project can be approved by the PAB and other approving bodies.”
The ICRC chief noted that the reform would enable quicker delivery of “low-value but high-impact projects” in key sectors.
“With this framework, we expect private sector-led investments in projects like rural diagnostic centres, school blocks, student hostels, and affordable housing to be delivered faster, with less bureaucracy,” he said.
