PUBLIC PRIVATE PARTNERSHIP IN NIGERIA: CHALLENGES AND PROSPECTS FOR POWER SECTOR DEVELOPMENT (original) (raw)

One of the sectors of the Nigerian economy that has been experiencing infrastructural deficit is the power sector. This sector has faced decades of neglect of inadequate funding by the Government. This has not only impacted the sector negatively but also Nigeria's development as a whole. Developing the power sector, Nigeria adopts public private partnership (PPP) as a strategy not only to ensure infrastructural provisioning in the sector but also to fast track the development of the power sector. The objective of this paper is to examine PPP in Nigeria and some of the challenges that pose threats to the successful adoption of the strategy to transform the Nigerian power sector and how to solve them. While collecting secondary data obtained from documentary sources, the paper employs descriptive and analytical methods of analysis to achieve its objectives. The study finds that adoption of PPP as a strategy in ongoing power sector reform in Nigeria faces some challenges which are the profit motives of the private firms involved in PPP projects, high electricity tariff, conflicting legislations, corruption and debt crisis. It is argued, however, that PPP could succeed in Nigeria despite the challenges. It is recommended that the highlighted challenges should be addressed for Nigeria to maximise the benefits in adopting PPP in the development of the power sector. INTRODUCTION The fundamental objective of any government, especially Nigeria, is " the security and welfare of the people " (Section 14, Subsection 2b of the 1999 Constitution, as amended, of the Federal Republic of Nigeria; emphasis authors'). To ensure the welfare of the citizens, there must be adequate provision of infrastructures by the government. As willing as governments all over the world, including Nigerian Government, would have loved to do this " global demand for basic infrastructure services has grown over the years, quickly outstripping the supply capacity of existing assets " (National Policy on Private Public Partnership, 2012:1). The frustration of the inability of the government to meet the demand for infrastructural amenities by the citizens due to financial incapacity of the state has compelled it to look for the best alternative. This gives rise to public private partnership (PPP).