Risks and Challenges in Public-Private Partnership Projects in Nigeria: A Case Study of the Concession of Murtala Mohammed Airport 2 Terminal (Lagos) to Bi-Courtney Nigeria Ltd.

Abstract

Public-private partnership (PPP) has gained global recognition as the key vehicle for the provision of necessary public projects due to the continual inability of governments to fund infrastructural needs of their people - Nigeria is not different as the governments at national and sub-national levels have adopted this model of infrastructural development as a means of addressing this challenge. The Federal government of Nigeria has also keyed into the opportunity of exploiting the financial muscle and management capabilities/expertise of the private sector to the PPP as a platform for the funding and execution of public projects, especially commercial infrastructure like roads, ports, airports, rail system, and public services in the area of healthcare. It was on this premise that the federal government, through the Federal Aviation Authority of Nigeria (FAAN), entered into concession agreement over the building and operations of MM2 airport with Bi-Courtney Aviation Services Ltd, which agreement has been the subject of disputes that have not been fully addressed yet. The goal of this research is to espouse the continuous use of PPP as a medium for the provision of critical infrastructure to the Nigerian populace, while not being oblivious of the need to ameliorate the business environment in the country through the rejigging of the legal and regulatory framework in order to guarantee transparent transactions through public disclosures, timely disputes resolutions framework, among others.