Public-Private Partnership on Infrastructural Development in Lagos, Nigeria (original) (raw)

In many large cities, such as Lagos, the delivery of public private partnership on infrastructure development is associated with a lot of problems. The traditional approach to Infrastructure development has always been that government invests in these essential infrastructures, while others including the community, individuals, and other private sector roles were seen in terms of paying taxes or other service charged for services rendered. It is in view of this that necessitated the evaluation of public-private partnership on infrastructural development in Lagos, using Ibeji-Lekki as a case study. This was done by identifying and appraising the concept of public-private partnership (PPP) contribution to infrastructural development in IbejuLekki area of Lagos State, evaluation of the level of effectiveness in the stages of agreement and negotiation process involved in public-private partnership scheme and the assessment ofpotential benefits and risks to parties concerned in Public-Private Partnership. The paper recommend that government needs to enlighten the public on the need for public-private partnership on infrastructure by including it in school curricular and also provide site and service scheme, where this could be practice. Introduction The rapid rate of urbanization in the last two decades in Nigeria has been phenomenal. Presently, 40% of the Nigerian population lives in urban areas (Lagos State Ministry of Economic Planning and Budget, 2004). This rapid urbanization rate has brought with it some significant problems including shortage of housing, traffic congestion, and above all, inadequate basic facilities and services. All these problems have created a lot of pressure on government. With the growing inability of the government today to provide all the basic facilities essential for growth and liveability is a result of dwindling resources, calls have heightened the desire for more liberalization of the economy. This means greater roles for all stakeholders in the financing, development, and management of basic community facilities and services. Thus this partnering approach in the procurement of basic infrastructure might be the necessary solution to the lack of and parlous state of infrastructure in Nigerian towns and cities. Today, public policy is undergoing necessary changes because a sustainable settlement can only be achieved with the political commitment to make the necessary changes. Changes envisaged in this way means greater dispersal of responsibility between the public sector and local society including businesses and individuals (Kaplan, 2001). Many development projects are currently being embarked upon today in Lagos State under a new policy thrust designed to guarantee project delivery by private developers in collaboration with the state (Otokhine, 2003). Linowes (1988), Keating (1989), Waterhouse (1996) and Lockwood (1997) as cited in Kopp (1997) all confirmed that there is indeed an ideological shift away from centralized, hierarchical decision making structures towards a more organic approach in which organizations, including governments, identify and focus their efforts on their core competencies. To resolve the lingering road and traffic problems, the Lagos state government decided to introduce certain new policy options. One of which is to adopt schemes by which private sector operators are encouraged. Also, the provision of shelter for all underlies the policy of sustainable development. The challenge posed by population growth in the state is frightening and day by day the situation is getting worse. The bulk of the population in an exploding city like Lagos relies on the rental market to provide accommodation. Government could no longer cope with the demand of housing supply considering the limited resources available. It therefore resolved to employ a three-pronged approach consisting mainly of: partnership with the private sector, site and services scheme, and direct intervention (Lagos State Government, 2006). Thus, under the Public–Private Partnership scheme, some government schemes were released to some private sector entrepreneurs for development in several parts of the state. In view of these, there is need to carry out an appraisal of Public Private Partnership on Infrastructural Development in Lagos State with IbejuLekki as a case study. This was done through identification and appraisal of the concept of Public-Private Partnership (PPP) contribution to infrastructural development in the area, evaluation of level of effectiveness in the stages of agreement and negotiation process involved in Public-Private Partnership scheme, assessment of potential benefits and risks to parties concerned in Public-Private Partnership and finally, identifying the gaps currently existing in the practice.