Tinubu Empowers MDAs to Approve PPP Contracts Below ₦20 Billion Without Federal Council Approval

President Bola Ahmed Tinubu has approved a major policy shift that decentralises the approval process for Public-Private Partnership (PPP) projects across Nigeria’s federal ministries, departments, and agencies (MDAs). With this new directive, MDAs are now authorised to independently approve PPP contracts valued below ₦20 billion without seeking prior clearance from the Infrastructure Concession Regulatory Commission (ICRC) or the Federal Executive Council (FEC).

This policy reform is part of President Tinubu’s economic agenda to improve infrastructure delivery, attract private investment, and reduce bureaucratic delays in public procurement.

A Major Shift in Infrastructure Delivery

Previously, all PPP projects, regardless of value, were required to go through a centralised approval process. This often led to project delays and discouraged private sector involvement due to administrative bottlenecks.

With the new structure, MDAs can now process and approve PPP contracts up to ₦19.9 billion directly. Only projects valued at ₦20 billion and above will require further approvals by the ICRC and FEC. This is expected to promote faster decision-making and increase the pace of project execution nationwide.

Strategic Alignment with Economic Reform Goals

The decentralisation aligns with the Tinubu administration’s Renewed Hope Agenda, which seeks to revitalise the Nigerian economy through:

• Greater involvement of the private sector in national development
• Timely delivery of infrastructure across key sectors such as transportation, energy, housing, and water resources
• Improved efficiency and autonomy in public institutions

This reform gives MDAs the tools to respond faster to infrastructure needs while maintaining accountability and compliance.

Key Guidelines for Implementation

Despite the decentralisation, MDAs are still required to follow standard PPP frameworks provided by the ICRC to ensure transparency and value for money. The new policy mandates that:

• All PPP projects must be registered with the ICRC, even if the value is below ₦20 billion
• MDAs must carry out proper feasibility studies and value-for-money assessments
• All approvals and procurement processes must comply with the Public Procurement Act

These measures are in place to ensure that decentralisation does not result in abuse or substandard project delivery.

Economic and Developmental Impact

The policy is expected to boost infrastructure development and create an enabling environment for increased private sector investment. Here is how the policy could positively affect Nigeria’s economy:

Benefit	Development Impact
Faster project approvals	Quicker execution of roads, energy, and other infrastructure
Enhanced investor confidence	More private companies willing to invest in government projects
Local economic growth	Jobs and businesses created from infrastructure expansion
Improved public services	Better access to roads, schools, and utilities for citizens
Institutional capacity building	Strengthens MDAs’ roles in national development

By cutting red tape and empowering MDAs, the federal government aims to foster a more responsive and efficient infrastructure ecosystem that serves the real needs of Nigerians.

Why This Matters Now

Nigeria is currently grappling with limited public funds and high demands for infrastructure development. The decentralisation of PPP project approvals presents a timely solution to bridge this gap through private investment.

Experts believe the reform will help:

• Reduce the federal government’s financial burden
• Accelerate the implementation of high-impact projects
• Improve the delivery of social and economic infrastructure nationwide

If implemented with strict adherence to transparency and best practices, this policy could transform Nigeria’s PPP landscape and serve as a model for other developing countries.

Conclusion

President Tinubu’s decision to decentralise PPP project approvals represents a bold and strategic reform. By empowering MDAs with authority to manage and approve contracts below ₦20 billion, the administration is not only addressing inefficiencies but also paving the way for faster economic growth and improved service delivery.

This reform is a critical step toward modernising Nigeria’s infrastructure, building investor confidence, and fulfilling the broader goals of the Renewed Hope Agenda.

Source: Read Full Official Report