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Infrastructure (Economics)

Reaffirming Public-Private Partnerships for Nigeria's Infrastructure Development

Strategic Insights

— 1 min read

The Nigerian Society of Engineers, through the Institute of Appraisers and Cost Engineers (IACE), has emphasized the importance of Public-Private Partnership (PPP) arrangements in addressing the country's massive infrastructure deficit, projected to be over N7.1 trillion annually. The organization has attributed the mixed success of PPPs to issues like cost overruns, delays, and financial viability concerns, and has highlighted the significance of robust cost engineering in unlocking their full potential.

Key Takeaways:

  • The Institute of Appraisers and Cost Engineers (IACE) has reaffirmed Public-Private Partnership (PPP) arrangements as a vital mechanism for infrastructure financing and delivery in Nigeria, with an annual deficit of over N7.1 trillion.
  • Robust cost engineering was identified as fundamental to unlocking the full potential of PPPs, addressing issues like cost overruns, delays, and financial viability concerns.
  • The IACE emphasized the importance of integrating cost engineering, valuation engineering, and engineering economy into engineering curricula to foster professional excellence, improve decision-making, and achieve cost savings.
  • Systemic weaknesses, including inadequate cost estimation, poor risk allocation, and insufficient life-cycle costing, contribute significantly to project failures.
  • Hedging and financial risk management are critical for combating losses and mitigating uncertainties in capital-intensive projects.
  • The IACE called for the establishment of a national infrastructure cost database, managed by the Infrastructure Concession Regulatory Commission (ICRC) and IACE, to ensure data availability and accuracy.
  • A total of 138 persons were inducted into the IACE, with 34 inductees from engineering economy, 47 from engineering valuation, 57 from cost engineering, and 8 invested with the Fellowship award.

Statistics:

  • Nigeria's annual infrastructure deficit: over N7.1 trillion (IACE communique, 2025)
  • Investments in robust cost engineering to unlock the full potential of PPPs (implications not specified)
  • 138 persons inducted into the IACE sections, including:

+ Engineering economy: 34 inductees

+ Engineering valuation: 47 inductees

+ Cost engineering: 57 inductees

+ Fellowship award: 8 recipients

Sources:

  • IACE National Technical Conference Communique (2025)
  • Nigerian Society of Engineers (NSE)
  • Institute of Appraisers and Cost Engineers (IACE)
  • Infrastructure Concession Regulatory Commission (ICRC)
  • Council for the Regulation of Engineering in Nigeria (COREN)

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