Group interest, government frustrate private sector efforts at infrastructure development – Experts

Nigeria’s quest for massive infrastructure development will remain a mirage for as long as group interest and government’s inability to keep faith with contract agreements continue to frustrate private sector efforts, development experts have said.

With infrastructure deficit, which value is estimated at $30 billion compounded by dwindling oil revenue, Nigeria needs all the support it can get from private sector operators to help it develop its infrastructure, especially roads and electricity, which have been blamed for the slow growth and development of its economy.

According the experts, in the past five to 10 years, a good number of well conceived projects have been initiated through a public private partnership (PPP) arrangement, but have been suspended or terminated following conflicting interests as seen in the construction of Lekki-Epe Expressway in Lagos, Nigeria, where group interest ‘compelled’ the state government to terminate its concession agreement with the Lekki Concession Company (LCC), the concessionaire on the road project.

“The same group interest was responsible for the termination of the concession agreement between the Federal Government and Bi-Courtney Limited – the concessionaire on the reconstruction of Lagos-Ibadan Expressway,” says an expert who did not want to be named.

Wale Babalakin, a lawyer and businessman, agrees, but adds that government or public sector officials are also culpable in sabotaging and frustrating private sector participation in infrastructure provision in the country.

Babalakin, one of Nigeria’s pioneer investors in public infrastructure development, observes that public officers do not respect terms of contracts and agreements, and see private investors in public infrastructure as either competitors or inferior partners.

“It is impossible for the government to fully meet the nation’s infrastructure need without the involvement of the private sector, particularly in the face of dwindling national revenue from oil sales; achieving success in infrastructure provision requires conscious effort by the government to protect private investors from the activities of self-centred public officials and interest groups,” he advises.

Another expert, who also pleaded anonymity, advises governments, especially Lagos State government, to respect the sanctity of contract agreements, noting that government is a continuum which is why the current administration in the state should be able to sustain the policies and the yet-to-be completed projects left behind by its predecessor.

“Over time, the bane of Nigeria and, indeed, Africa’s overall development has not only been lack of capacity to force through these developments but the seemingly merry-go-round of abandoning projects and policies of previous governments at the advent of a new one,” the expert says, adding, “this appears to be responsible for the litany of abandoned projects across the country today.”

In the South Eastern part of the country, the same group interest is threatening an estimated N150 billion private sector investment into the redevelopment of the old, dilapidated Ariaria Aba Market in Aba, the commercial nerve of Abia State.

At a stakeholders meeting in Aba recently, where the proposed new market with roads, drainage and parking lots infrastructure was presented, certain elements within the market association stood against the redevelopment proposal that would see the market transform into an ultra-modern facility with 50,000 shops, 12,000 underground parking lots, and good road network with drainages.

“This is our common problem in Africa; people resist change most times for personal or group interest,” notes Mustafa Njie, CEO, Taf Africa Homes, hoping that government would be able to muster enough political will to prevail on the contending group to look at the bigger picture and the economic benefits of the project to them and also to the government.