Public-private partnerships (PPPs) are a crucial mechanism for driving sustainable development in emerging markets. This is particularly true for small businesses in Nigeria, where resource constraints and infrastructural deficits often hinder progress. PPPs combine the strengths of both the public and private sectors to overcome these challenges. There are various types of PPP arrangements, each with its own way of sharing risks and responsibilities.
The choice of PPP model depends on factors like the sector, project scale, and desired level of public involvement.Key factors for success include political will, a clear purpose, subject matter expertise, a proven track record, superb communication skills, effective stakeholder management, and cultural sensitivity.The private sector has a moral responsibility to contribute to sustainable development through PPPs. Despite potential challenges, well-structured collaborations can lead to significant positive impacts, as demonstrated by successful PPPs in Nigeria and other emerging markets.
PUBLIC-PRIVATE PARTNERSHIPS (PPPS) HAVE EMERGED AS A PIVOTAL MECHANISM IN DRIVING SUSTAINABLE DEVELOPMENT, PARTICULARLY IN EMERGING MARKETS LIKE NIGERIA.
With over a decade of experience in consulting on various partnerships across sectors—healthcare, waste management, emergency response, outsourced manpower, and power—I have witnessed firsthand the transformative potential of well-structured collaborations, as well as the pitfalls that can derail these efforts.
Properly utilised, they hold immense potential for driving sustainable development particularly when it comes to small businesses. However, the success of these collaborations hinges on careful planning, strong regulatory frameworks, and a clear alignment of objectives between public and private partners. By learning from both successes and failures, we can discuss how these partnerships contribute to a more sustainable and prosperous future.
PUBLIC-PRIVATE PARTNERSHIPS (PPPS) AS A MECHANISM FOR SUSTAINABLE DEVELOPMENT
In Nigeria, where resource constraints and infrastructural deficits often hinder progress, PPPs offer a viable solution. They combine the resources, expertise, and efficiency of the private sector with the public sector’s regulatory authority and social mandate. This synergy is particularly crucial for small businesses, which are the backbone of Nigeria’s economy, yet often struggle with access to capital, markets, and infrastructure. Before we go any further, let’s take a look at the most common types of PPP arrangements
WHICH PPP?
This arrangement is often used in sectors like utilities or healthcare, where the government wants to maintain control but needs external expertise to run the service. The choice of PPP arrangement often depends on the sector, project scale, and the level of public involvement required.
For instance, large-scale infrastructure projects like highways or power plants may use BOT or DBFO models, which allow the private sector to manage complex financing and operations. In contrast, smaller-scale projects or services like facility management may opt for simpler management or service contracts where the government retains more control.
Ultimately, each PPP type balances the government’s need for infrastructure or services with the private sector’s expertise and investment capabilities. Understanding these variations helps stakeholders choose the right model for the project’s unique requirements.
Each PPP arrangement varies in how risks and responsibilities are shared between the public and private sectors. The distinctions primarily lie in who takes on the financial, operational, and legal risks, as well as the role each party plays in managing the project. Some models require the private sector to handle most of the financial and operational burdens, while others involve more government oversight and involvement.
In BOT arrangements, the private partner is responsible for financing, building, and operating the facility for a specific period. The government shifts much of the construction and operational risks to the private sector, but the asset returns to public ownership after the contract ends.
Management contracts, on the other hand, involve less risk for the private partner. The government retains ownership of the asset, and the private company is only responsible for managing day-to-day operations, often for a fixed fee.
THE PRIVATE SECTOR’S ROLE IN SUSTAINABLE DEVELOPMENT THROUGH PPPS
It is my position and one that I will be arguing in this piece that given the staggering infrastructure deficits staggering, the private sector has a moral responsibility to lend expertise, drive efficiency and ultimately make a sustainable impact. The issue of sustainability in this context is about making sufficient profit to continue and potentially expand the impact.
You might argue that the very idea of business for profit is at odds with ‘doing good’. The reality is more nuanced than that and has birthed a whole category of ‘social enterprise.’ These are businesses that operate like traditional businesses but have a primary mission to address social, cultural, or environmental issues.
Let’s consider the case of the business I run, Logic City, under a Management Contract, we operationalise the response for the Lagos State Emergency Management Agency. Our personnel are firefighters, paramedics, rescue technicians and work round the clock at disaster scenes directly and saving lives.
Our goal is to provide a first response within the so-called ‘Golden Hour’-the period immediately after a traumatic injury/accident during which there is the highest likelihood that prompt intervention will prevent death.
In addition to manpower, we operate and maintain their fleet of 55 vehicles, which includes fire trucks, forklifts, excavators, and cranes. To reduce the incidence of preventable accidents, we bring our creativity and passion to advocacy by visiting schools and teaching young people about fire, home safety and first aid.
Having partners who are flexible and dedicated is vital for success The reality is however that many PPP projects go off the rails, one of which was the 30-year concession for Lekki Epe Expressway Toll Road -Nigeria’s first ever Public Private Partnership (PPP) project and a prime example of a DBFO arrangement. The project comprised the rehabilitation and upgrade of 49 km of existing two-lane dual carriageway to a three-lane highway, the introduction of three toll plazas (with a maximum of 22 lanes/plaza) and the construction of a new 20km highway along the south coast of the Epe. The contract was eventually terminated and the Lagos State Government bought out the concessionaire at significant cost to the taxpayer.These highly publicised travails not only make PPPs a public nuisance (or more), but they also create big political hurdles to overcome the next time a much-needed infrastructure project requires outside funding.
When Things Go Wrong Case Study 1 Another example of a challenging PPP was the MMA2 which was awarded to BASL in 2003 as a public-private partnership project on a BOT basis, but has since been enmeshed in a legal battle following disagreements between both parties on aspects of the agreement, including the tenure. It was only in 2022, that the parties were able to agree on the way forward. Case Study 2 Ifeoma Monye of CIUCIU Consulting, a management consultant and GAIA ambassador has two different PPPs under her belt. Both run under Service agreements, the first, operating since 2019 is the Edo Specialist Hospital in Benin City which was equipped and staffed by their company and the second is the Glover Memorial Hall- a storied cultural hub for theatre and performing arts in Lagos, built in 1887, and refurbished in 2018 before being concessioned to a Special Purpose Vehicle led by CIUCIU and Lufodo to operate January 2022.
From Theory to PracticeIn addition to trading war stories, we were able to outline key factors required for successful PPPs. We started with theory and I shared with her research from the Harvard Business Review which identified that most successful PPPs had three qualities in common: A strong commitment beyond the terms of the contract: One of the most important factors in a successful PPP is the ability of both partners to commit to the project beyond the basic legal and financial obligations outlined in the contract. This involves going above and beyond to achieve the project’s objectives, even when circumstances change.
In Nigeria, where infrastructural, regulatory, or political shifts are common, having partners who are willing to remain flexible and dedicated despite unforeseen challenges is vital. This could look like a private partner continuing to provide support, such as staff training or additional resources, even after the contractually defined period has ended, ensuring the sustainability of the project. A strong commitment also means maintaining a long-term view, recognizing that the success of the project relies on an enduring partnership that adapts over time to changing needs and environments. An example of this is our community advocacy and schools program ‘Mind the Gap’ which we run to change the safety behaviour of children and young people.
Built-in mechanisms to share perspectives about the project (especially problems and concerns): Without these built-in channels, small issues can escalate into major problems, causing project delays, cost overruns, or, in the worst cases, partnership breakdowns. Regular project reviews, joint steering committees, and real-time feedback loops can ensure that both parties are aligned and that any concerns are addressed before they become obstacles. Informal courtesy calls, and remembering and celebrating landmark events with key stakeholders can also go a long way.
Effective Ways to Rebound from Failures to Deliver: The HBR research highlights the importance of resilience and agility—both parties must be able to adapt when things don’t go as planned. Whether it’s due to financial setbacks, external disruptions, or operational issues, having a system in place to learn from these failures and course-correct is essential. In Nigeria, where the devaluation of the Naira and record headline inflation rates have pummelled the bottom line of most businesses, the ability to rebound is particularly crucial.
Both partners should have contingency plans, a willingness to renegotiate terms if necessary, and the flexibility to adjust operational strategies. Most of the waste management (another area with extensive private sector participation) arrangements have had to be adjusted due to the skyrocketing cost of fuel for example. Effective rebounding often involves learning from mistakes, implementing corrective actions, and remaining open to feedback. It’s not about avoiding failure entirely, but rather about responding effectively and ensuring that these failures do not compromise the broader success of the partnership.
1. Be sure to have key birthdays on record and a cake vendor on speed dial! These three qualities ensure that both partners remain engaged, adaptable, and collaborative throughout the life of the project, leading to sustainable and impactful outcomes.
POLITICAL WILLPURPOSE AND PASSION: SUBJECT MATTER EXPERTISE: TRACK RECORD:
This refers to the commitment and determination of government leaders to support, implement and SUSTAIN any project. Without the active endorsement of government officials at the federal, state, or local levels, even the most well-planned projects can stall. Political will ensures that necessary policies, regulations, and resources are in place to facilitate the partnership. It also helps in navigating bureaucratic red tape, overcoming resistance, and providing the necessary funding or concessions. Political instability or frequent changes in government can undermine this will, so sustaining political interest is key throughout the project lifecycle.
As the promoter, you must tap into a greater purpose- for Ifeoma and me, we wanted to save lives and improve the available standards of care- this is important because there will be significant challenges—ranging from resource constraints to political and infrastructural hurdles.
To overcome these, you must have a clear sense of purpose and a passion for achieving tangible outcomes. This will allow you to maintain momentum, especially when the partnership encounters obstacles, and to find creative solutions to problems.
At a minimum, you should have the technical knowledge and expertise relevant to the specific sector or project in which the PPP is engaged. It is your responsibility to ensure that decisions are based on sound, informed perspectives. In the Nigerian context, this expertise must also account for local conditions—understanding market dynamics, regulatory frameworks, and cultural considerations. You are responsible for addressing the unique challenges of your domain while implementing global best practices.
A proven ability to manage resources, execute on time, and meet agreed objectives builds trust and confidence in the partnership. This is where strategic collaborations can play a vital role- Ifeoma Monye and Ajoke Silva operate as Co-CEOs of the Glover Memorial Hall, the latter bringing a stellar acting and cultural career to the table and the former focusing on the nuts and bolts of operation management required to quite literally, keep the lights on. Ifeoma and I discussed another six key factors to consider for successful collaboration in Nigeria;
SUPERB COMMUNICATION SKILLS: Clear, consistent, and transparent communication is fundamental to PPP success. In a complex partnership where public and private sectors may have different languages, cultures, and operational styles, superb communication ensures the alignment of goals and prevents misunderstandings.
In Nigeria, communication must also take into account varying literacy levels, regional languages, and the need for both formal and informal stakeholder engagements. Miscommunication can lead to project delays, cost overruns, or conflicts, while excellent communication fosters trust and smooth collaboration throughout the project.
STAKEHOLDER MANAGEMENT: You will have to manage a wide range of stakeholders, from government agencies and investors to local communities and regulatory bodies. Effective stakeholder management involves continuous consultation, addressing concerns proactively, and ensuring that all voices are heard, particularly in projects that affect local populations. Building trust with stakeholders, especially those directly impacted by the project, ensures smoother execution and minimizes resistance. In many cases, local community buy-in can determine whether a project is seen as a positive contribution or as an imposition.
In a recent GAIA Workshop, led by Yetunde Bankole Bernard (YBB), she talked about reaching the ‘legacy building’ stage in one’s personal life and career. Small and medium sized businesses, excellently and diligently run, have the opportunity in PPPs to amplify their impact. With political will in play, many creative and potentially profitable ventures are possible and most state governments have created agencies to accommodate requests and partnerships. It would be naive of us to expect the ideas generation to come from the government.
The maxim goes ‘opportunity meets preparedness’ and it may well be for impact-led, entrepreneurial-minded Nigerians to create their own opportunities. If you’re looking to explore PPP opportunities or need expert guidance, let’s collaborate to create impactful, sustainable ventures. With over 18 years of leadership in sectors like Business Outsourcing, Technology, Emergency Services, and Waste Management, I have successfully driven major partnerships and initiatives and can help you find your profit at the intersection of passion and purpose.
