Safeguards for public-private partnership assets in Nigeria: Lessons from South Africa

• Jurisdiction: South Africa
• Citation: (2019) 6(2) Journal of Comparative Law in Africa 56
• Date: 11 August 2020
• Author: Arimoro, A.
• Published date: 11 August 2020
• Pages: 56-79

56

SAFEGUARDS FOR PUBLIC-PRIVATE

PARTNERSHIP ASSETS IN NIGERIA: LESSONS

FROM SOUTH AFRICA*

Augustine Arimoro†

Abstract

Countries around the world are adopting the public-private partnership model of

procurement in order to bridge infrastructure gaps and to tap from private sector

capital and expertise. Given the involvement of private sector funding in public-

private partnership arrangements, the safety of investors’ assets is fundamental in

order to attract both domestic and foreign investors to the public infrastructure

market. This article examines the framework for the administration of the public-

private partnership model in Nigeria with a view to determining how the law

protects investors’ assets. The framework in South Africa is also examined for

comparative insight. The central argument in the article is that a reliable framework

that aims to ensure successful completion and management of projects in Nigeria

can be achieved by taking a cue from the South African model. The article concludes

with recommendations.

Keywords: infrastructure, investor, public-private partnership, Nigeria,

South Africa

Résumé

À travers le monde, les pays ont adopté le modèle de partenariat public-privé afin

de combler leurs déficits en infrastructure et de puiser dans les capitaux et les

compétences du secteur privé. Compte tenu de la participation financière du secteur

privé dans des accords de partenariat public-privé, la sécurité des actifs des

investisseurs est primordiale, afin d’attirer les investisseurs nationaux et étrangers

sur le marché des infrastructures publiques. Cet article examine le cadre juridique

pour l’administration du modèle de partenariat public-privé au Nigéria, en vue de

déterminer comment la loi protège les actifs des investisseurs. Le cadre jur idique

sud-africain est également examiné sous un angle de droit comparé. L’argument

central de l’article est qu’il est possible de créer un cadre fiable visant à assurer une

* This research was conducted while the author was a doctoral researcher at the Centre for

Comparative Law in Africa, Faculty of Law, University of Cape Town. The author wishes to express

appreciation to the Postgraduate Funding Office of the University of Cape Town for funding this

research and also to the Faculty of Law, UCT for the award of a thesis completion grant to the

author.

† LLB Hons (Maidugur i) LLM (Derby, UK) PhD, Associate Lecturer in Law, St Mary’s University

Twickenham, London, United Kingdom, E-mail: augustine.arimoro@stmarys.ac.uk

(2019) 6(2) Journal of Comparative Law in Africa 56

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SAFEGUARDS FOR PUBLIC-PRIVATE PARTNERSHIP ASSETS IN NIGERIA:

LESSONS FROM SOUTH AFRICA 57

réalisation et une gestion réussies des projets au Nigéria, en s’inspirant du modèle

sud-africain. L’article s’achève par quelques recommandations.

Mots-clés: infrastructure, investisseur, partenariat public-privé, Nigéria,

Afrique du Sud

Introduction

Traditionally, governments across the globe utilised state resources to

provide for all the infrastructural needs of the citizenry.1 In the modern

era the huge costs involved in the procurement of infrastructure as

well as budget deficits make it impracticable for the public authority

alone to supply infrastructure to meet with the public demand in any

given jurisdiction. As a result of the foregoing, governments around the

world are seeking alternative strategies to procure infrastructure other

than through traditional public procurement. One such alternative is the

adoption of the public-private partnership (PPP) model of infrastructure

procurement. The PPP model is, to put it succinctly, a collaboration

between the public authority and a private sector entity to design, fund,

manage, operate and maintain a public facility for example, a toll road, a

bridge or an airport.2 While PPP is becoming popular in both developed

and developing economies, in many developing countries whatever

benefits that the model can provide are often windswept by failures

caused by a weak framework or by lack of commitment on the part of

the public authority.3

This article argues that the law has a fundamental role to play in

moulding successful PPP relationships especially in developing and

emerging economies. Respect for these relationships and for the sanctity

of contracts is a driver for PPP growth. As such, this research finds that

policymakers need to adopt measures to strengthen the law and the

institutions that oversee PPP as well as be opened to reform in order

to cope with changing times. Further, it is argued in this article that

‘importing’ a PPP framework from a developed country without taking

into cognisance local circumstances may be an invitation for failure at the

outset. Therefore, it is imperative that in the quest for a framework to suit

their purposes, policymakers need to consider jurisdictions with similar

traits as theirs. For example, it will serve a country in Africa better to

study the framework that has been successful in another African country

rather than one from Europe.

1 Dar ren Grimsey & Mervyn K Lewis Public Private Partnerships: The Worldwide Revolution in

Infrastructure Provision and Project Finance (2004) 1.

2 Arimoro, A. ‘An appraisal of the framework for public private partnership in South Africa’

(2018) 13 European Procurement & Public Private Partnership Law Review 214.

3 Yescombe, E.R. Public-Private Partnerships in Sub-Saharan Africa: Case Studies for Policy Makers

(2017) 3.

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