The Secretary to the Government of the Federation (SGF), Mr. Boss Mustapha, claims that Africa needs to create and adopt a robust Public-Private Partnership (PPP) framework.
The SGF made this statement on Monday in Abuja during a two-day investment program sponsored by the Africa Public Private Partnership Network (AP3N) with the theme “Financing Africa’s Infrastructure through PPP.”
The Infrastructure Concession Regulatory Commission organized the program (ICRC).
According to Mustapha, a robust and active PPP is required to enable quick infrastructure change on the continent.
According to him, the continent’s current economic growth pattern emphasizes the significance of private sector investment through PPP in fostering the continent’s growth and structural transformation.
Because of this, he said, “the continent must identify the private sector development as an engine of sustainable structural transformation through PPPs.”
However, Mustapha asserted that certain issues needed to be resolved to encourage and foster a thriving private sector on the continent and speed up infrastructure development.
He asserts that it is unquestionably necessary to foster an environment that is favorable to investment.
“This can be accomplished by lowering the risks and expenses of doing business, as well as by defending the rights to private property, enhancing governance, combating corruption, streamlining regulations, and encouraging competition.
For intra-African trade to grow, African governments must defy pressure not to erect trade barriers. Currently, 10% of all exports are conducted within the continent of Africa.
“Among other regions of the world, this is the lowest. However, we firmly believe that the situation will significantly improve thanks to the African Continental Free Trade Agreement initiative.
He claimed that strengthening institutional and regulatory frameworks was necessary for the financial sector’s development to enhance governance and boost competition.
“Access to finance by the private sector is equally important to improve access to finance and financial literacy, develop payment systems, and enhance creditor rights.”
According to the SGF, the Federal Government has maintained its support and encouragement of the country’s Public-Private Partnership (PPP) policy framework.
He claims that Nigeria’s current financial predicament, brought on by the worldwide COVID-19 pandemic and declining revenue, has made the switch to PPPs more compelling than ever.
However, he added that the government would continue to uphold transparency as the cornerstone of all PPP decisions to ensure the proper framework for an efficient partnership and value for money.
Michael Ohtani, the acting director-general of the ICRC, said the summit’s theme was appropriate given the pivotal role PPPs have played in the transformation of the world’s economies.
China argued that the goal of AP3N is to establish a network of PPP specialists throughout Africa to identify practical ways to close the continent’s infrastructure gaps.
To design, develop, and implement infrastructure projects in line with international best practices for infrastructure and service delivery, he claimed this was accomplished by bringing together PPP units, professionals, and experts from across the continent.
“We think that for African PPP practitioners to share a common body of knowledge, this continental body must constantly provide a forum for networking and interaction.
This is especially true because of our unique circumstances, which require us to deal with infrastructure and service delivery issues by our traditions while keeping an eye on trends and developments around the world.
The director-general claimed that Nigeria was not exempt from the financial difficulties brought on by COVID-19.
He claimed that there was an increasing need to save projects that were in the process of being implemented as well as create bankable and practical PPP projects for investment.
Shortly, the ICRC plans to publish a gazette listing of 53 eligible and bankable PPP projects totaling about 22 billion dollars for 2022, he said.
According to China, improving the national-level investment environment for both domestic and foreign investors is crucial in the twenty-first century.
Asiana Okauru, the director-general of the Nigerian Governors Forum, claimed that the forum had worked with the ICRC to create the Nigeria Public-Private Partnership Network.
The network was created, according to Okauru, who was represented by Mr. Eghosa Omoigui, Head Stakeholders Relations/SDGs, NGF, to address problems and roadblocks in the infrastructure development of crucial subnational economic sectors by PPP.
To achieve SDG 7, which is related to the industry, innovation, and infrastructure, the NGF, according to him, believes that state governments’ ability to prepare PPP pipelines and bankable projects must be given more funding and resources.
Okauru claimed that this would provide a long-term sustainable strategy for enhancing social infrastructure, raising the value of assets in the public sector, and better-utilizing taxpayer funds.