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Nigeria Ports Authority (NPA) Concessions and Joint Ventures Agreements

In the global port community, concessioning is seen as a means of reducing public infrastructural
deficit, engendered by the disproportionate growth in population and the available resources for
national development. Since government cannot do it alone, private investors have to become
involved as public private partnerships, (PPP). Public and private infrastructural developments have
become a preferred model for delivery of services in much of the West. Nigeria is slowly embracing
the model to fill the gap of public works. However, the model is threatened by a lack of
understanding, in some elements of the Public Sector, of PPP best practice in relation to Port
operations.

The attempts by successive administrations to institutionalize PPP have been truncated by officials
whose vision is not in alignment with the Government. Even those concessions that appeared to have
been successfully executed have been controversial. In fact, in situations where the concessionaire
and the concessioner successfully reach an agreement, workers often protest because of the fear of
job cuts. The Infrastructure Concessioning Regulatory Commission (ICRC) has estimated that the
Federal Government must spend about N2.25 trillion annually to reduce the infrastructure deficit
facing the country. The current attitude of some government officials to concessioning may hinder
the growth off PPP as a model for infrastructure development.

By comparison, the Jamaican government published initial PPP Policy documents, popularly called PPP3, in 2012,
which has led to the government divesting its large interest in Sangster International Airport, Highway 2000,
and the Government-owned sugar factories and estates; in addition to the Kingston Container Terminal and
the Norman Manley International Airport. Infrastructure services and development are critical to the
operation and efficiency of a modern economy. They are critical inputs in the provision of goods and
services which significantly affect productivity, cost and the competitiveness of the economy.

The full report is available here NPA Concessions and Joint Venture Agreements Final Report

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