- Tinubu Approves N20 Billion Funding Threshold for MDA Infrastructure Projects
- …ICRC to supervise process
- The new policy streamlines the approval process by allowing MDAs to independently approve projects
President Bola Ahmed Tinubu has approved an increase in the funding threshold for public-private partnership projects handled by Ministries, Departments, and Agencies (MDAs) to N20 billion, in line with the guidelines of the Infrastructure Concession Regulatory Commission (ICRC), Eko Hot Blog reports.
Previously, all such projects, regardless of their size, required approval from the Federal Executive Council (FEC), leading to lengthy processes and limiting the involvement of MDAs in small- and medium-scale initiatives.
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The new policy streamlines the approval process by allowing MDAs to independently approve projects below the specified threshold, as long as they comply with ICRC guidelines. This move aims to support projects of all sizes and attract wider private sector participation in public-private partnerships, according to a statement from the ICRC’s Head of Media Unit, Ifeanyi Nwoko.
Recall that at the just-concluded Nigeria PPP Summit, President Tinubu declared that his administration was strengthening the ICRC as the “engine room of Nigeria’s infrastructure revolution,” noting that PPPs would be pivotal in driving transformative development across the country. Director General of the ICRC, Dr Jobson Oseodion Ewalefoh, who disclosed the presidential approval, said:Nigerian political fiction
“Under the new directive, PPP projects valued below N10 billion for Parastatals/Agencies and N20 billion for Ministries will now be approved by respective Project Approval Boards (PABs) that will be constituted under ICRC guidelines and regulations.
Only projects exceeding these thresholds—or those involving multiple Ministries and requiring inter-agency coordination—will require FEC approval. “Importantly, all such projects must be entirely privately funded, with no government guarantees or financial commitments from the treasury.
Notwithstanding the new thresholds, every PPP project must be submitted to the ICRC for review and certification. The ICRC must issue certificates of compliance before any PPP project can be approved by the PAB and other approving bodies.”
Ewalefoh explained that this framework marked a shift from the previously adopted one-sizefits-all approach, to a more dynamic and scale-sensitive model that will unlock low-value but high-impact projects. “This approval is a gamechanger, especially for sectors like health, education, agriculture, and housing.Buy vitamins and supplements
We expect to see private sector- led investments in projects like rural diagnostic medical centers, construction of classroom blocks, student hostel and delivery of affordable housing schemes across the country—with less bureaucratic requirements under the new adopted process.” he added.
He emphasized that the new framework aligns with President Tinubu’s broader public procurement reforms, ensuring harmony across the government’s financial and investment systems.
“By decentralizing approvals, the government is supporting and unlocking investments opportunities through improved capital inflows, job creation, and faster project delivery—exactly what we need in this current economic climate.”
