Law School

 

George Nwangwu

Email: G.A.Nwangwu@2010.hull.ac.uk

Qualifications: LLB University of Lagos; LLM University College London

Supervisor(s): Dr Rhuks Ako, Professor Chris Bovis

Research Thesis Abstract

Enhancing Public Private Partnerships in Nigeria through Proper Risk Allocation

Nigeria recently turned to the use of Public-Private Partnerships (PPPs) to help finance much-needed infrastructure in the country. Currently, a number of projects have been pursued as PPPs with quite limited success. The reasons for this are because of deficient laws and proper project governance management. A flawed risk allocation process further exacerbates these problems. It is believed that if certain project risks, like regulatory risks, are eliminated or minimised through the enactment of enabling legislations and the majority of other risks allocated and mitigated appropriately, that it can resolve most of the problems and lead to more successful PPP projects.

The history of PPP in Nigeria has shown that the issues of risk transfer, balancing and mitigation are not being handled well. One theory that this research will seek to pursue is that this problem has led to the increase in the use of secondary risk mitigating techniques by the private sector in the form of “non compete clauses”, “stabilization clauses” and other similar clauses in PPP contracts, which has resulted in wide spread condemnation in several quarters because of their tendency to stifle development in long run.

It is hoped that this work will be valuable in creating a robust legal and institutional framework and by extension, an effective and good governance regime, which creates certainty, encourages and creates an incentive for the inflow of private sector led finance into the country and also balances the need to create opportunity for private sector investment with the protection of public interests.

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