The Challenges of Public Private Partnership (PPP) Projects in a Developing Country:

The Case Study of the Lekki Toll Road Infrastructure Project in Lagos, Nigeria

Christian Azuka Olele,

EdgeGold Concept Services Limited, Lagos, Nigeria

E-mail: oleles@gmail.com

Abstract: In developed and developing countries, government has significant constraints in their ability to make investment in the provision of public infrastructure. This has brought about the involvement of private sector participants in the provision of such services.

Nigeria as a developing country, since the embracement of democracy in 1999 the civilian democratic government took up the application of PPP framework as a medium to providing important infrastructure through the involvement of the organized private sector. In other to make PPP attractive to the private sector in Nigeria, the government set up attractive investment opportunities for PPP investors and also provide fair legal framework where the private sector investor will be allowed to come up with concession companies, have guarantees that compensation will be paid by the government if she defaults.

In the development of PPP infrastructure projects, the private sector participants are exposed to risks associated with assets investment in public projects. As a result, the private sectors generally are inspired to ask for soaring investment guarantees, special considerations and other investment enticements so as to guard their investments.

This paper is aimed at looking at the recent PPP infrastructural developments in Nigeria where the government has clinched the PPP framework policy since the passing of the PPP act 20. And secondly, to look at the benefits associated with the investment of the private sectors in the development of infrastructure.