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Four-Year PPP Process Raises Questions About Governance and Nigeria’s Investment Climate
A Federal Executive Council-approved public-private partnership for critical healthcare infrastructure at one of Nigeria’s foremost teaching hospitals has hit a brick wall, with the host institution refusing to execute concession agreements despite full regulatory approvals and ministerial directives.
Documents obtained by our reporter reveal a troubling pattern of delays and apparent attempts to unilaterally renegotiate terms of two projects—a nursing students hostel and mortuary/pathology laboratory facility—that received Federal Executive Council approval in June 2024.
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Seventeen months after FEC approval, not a single brick has been laid.
THE PROJECTS AND THE PROCESS
The twin projects, designed to address critical infrastructure deficits at the teaching hospital, underwent a rigorous four-year approval process supervised by the Infrastructure Concession Regulatory Commission (ICRC), Nigeria’s statutory body for regulating PPP projects.
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Official correspondence sighted by our reporter shows a timeline in full compliance with federal regulations:
- 2022: The hospital’s board approved submission of an Outline Business Case (OBC) to ICRC, which granted approval in early 2022, allowing the projects to proceed to the next stage.
- 2023: Full Business Case (FBC) compliance certificates were issued by ICRC in October 2023 for both projects. In a detailed six-page letter dated October 30, 2023, ICRC’s Director General confirmed that both projects met requirements outlined in the National Policy on Public Private Partnership and ICRC regulations.
- 2024 (May): ICRC revalidated both FBC Compliance Certificates. Letters dated May 2, 2024, extended the certificates’ validity for another six months to allow the Ministry of Health to present the projects to FEC for approval. This revalidation was necessary because the original 2023 certificates had expired.
- 2024 (June): The Federal Ministry of Health and Social Welfare presented both projects to the Federal Executive Council, which granted approval on June 25, 2024. A letter dated December 9, 2024, from the Ministry’s Deputy Director confirmed this approval and urged the hospital to “take the necessary steps to facilitate the implementation of these projects.”
- 2025: The Federal Ministry of Justice completed its review of the concession agreements by June 2025, removing the final regulatory hurdle to implementation.
THE STALEMATE
Despite these approvals, the hospital has declined to execute the concession agreements.
In October 2025, the Federal Ministry of Health convened two meetings—one physical in Abuja on October 23, and a virtual session on October 30—at the Minister’s direction to resolve the impasse.
A meeting summary obtained by our reporter reveals that the hospital “essentially chose to repeat and restate earlier comments at the ICRC and FMOHSW organized meetings, thus amounting to an attempt to completely renegotiate the entire PPP process from OBC to FEC approval by unilaterally imposing their own terms.”
The document further notes that hospital officials “indicated their intention to discontinue the FEC approved concessions” and insisted that follow-up discussions be held physically in Ibadan—a demand the private sector partner rejected, arguing that virtual meetings were sufficient.
No agreement was reached, and the talks collapsed.
The private partner involved in the project described the situation in a letter to the Coordinating Minister of Health as the hospital “acting ultra vires”—beyond its lawful authority—by attempting to vary or discontinue what was approved by FEC.
ICRC INTERVENTION AND REGULATORY WARNINGS
In February 2025, ICRC convened a meeting between all parties to address concerns about the projects. A resolution was reached and communicated to the Honorable Minister of Health.
However, in a letter dated February 19, 2025, ICRC’s Director General, Jobson Oseodion Ewalefoh, expressed serious concern about the situation, warning the hospital to “adhere to the negotiated projects’ agreement terms and conditions because of the potential legal consequences and institutional reputation post-Federal Executive Council (FEC) approvals.”
The ICRC letter specifically cautioned that unilateral changes could cause “reputational damage to FMOHSW and this Government.”
Critically, ICRC emphasized that “a project review clause be inserted in the PPP agreement that after year 3 of the projects’ implementations (2-years construction period and one-year operations period), the agreement be reviewed based on actual projects data gathered.”
This provision, designed to address legitimate concerns about Nigeria’s fluctuating economic conditions, was meant to provide flexibility within the approved framework—not justify wholesale renegotiation before project commencement.
This compromise appears to have been completely disregarded by hospital management.
PROJECT BENEFITS AND URGENCY
The projects address critical needs at the teaching hospital:
For the Nursing Hostel:
- Provides decent accommodation for students pursuing various fields of academic endeavor
- Reduces transportation costs for students
- Creates secured environment for living and learning
- Supports the hospital’s educational mission
For the Mortuary/Pathology Lab:
- Enables proper keeping of deceased persons until relatives can collect them for burial
- Provides state-of-the-art mortuary and pathology laboratory facilities
- Supports the hospital’s research mission
- Improves service delivery to the public
The nursing hostel currently comprises three blocks of three-floor buildings with 264 two-person rooms. The renovation would modernize facilities and convert rooms to four-person accommodation, significantly expanding capacity while improving living conditions for students.
The mortuary and pathology laboratory, meanwhile, suffers from worn-out chillers and outdated equipment. The upgrade would enable proper storage of deceased persons and provide state-of-the-art facilities for autopsy, pathology laboratory services, and medical research—all critical to the hospital’s teaching and service delivery mandate.
ICRC’s March 2022 letter emphasized that both projects demonstrated “substantial compliance to key requirements with the National Policy on Public-Private Partnership (PPP) and the ICRC Establishment Act (2005).”
ATTEMPTS AT RESOLUTION
The Federal Ministry of Health has made multiple attempts to resolve the impasse. Both the October 23, 2025 meeting in Abuja and the subsequent October 30 virtual meeting were convened at the Minister’s direction to “review the FMOJ comments and harmonize positions accordingly.”
However, according to the meeting summary, the hospital “insisted that a follow-up meeting be held physically in Ibadan,” while the private partner maintained that “a virtual meeting is sufficient to discuss any other issues.”
No subsequent meeting could be agreed upon.
In a letter dated October 30, 2025, addressed to the Coordinating Minister, the private partner noted: “As the PPP approval process must follow the established procedure, we believe that they [the hospital] are not at liberty to unilaterally vary or discontinue what was approved by FEC and as such acting ultra vires.”
The letter concluded with an appeal for ministerial intervention: “We, therefore, humbly appeal to the Hon. Minister to intervene accordingly as this process has been painstakingly and diligently executed over the last four years under ICRC supervision.”
UNANSWERED QUESTIONS
This investigation raises several critical issues:
Institutional authority: Does a teaching hospital have the power to override Federal Executive Council decisions on approved projects? Legal experts say the answer is clearly no, but enforcement remains the challenge.
Changed circumstances: Hospital officials have not publicly articulated what new factors emerged after FEC approval to justify refusing to execute the agreements.
Cost of delays: Who bears the financial burden of four years of regulatory process and the resources invested by all parties?
Precedent: If institutional resistance can effectively nullify a completed PPP process, what message does this send to other potential private sector partners across Nigeria’s infrastructure sectors?
Timeline: With critical healthcare and educational infrastructure remaining inadequate, how long will students and patients continue to suffer while bureaucratic gridlock persists?
Regulatory framework: If the ICRC process can be effectively nullified at the implementation stage, what is the value of the regulatory framework?
BROADER IMPLICATIONS FOR NIGERIA’S PPP FRAMEWORK
This case raises critical questions about Nigeria’s ability to attract and retain private investment in critical infrastructure. The country has been working to improve its investment climate and has established robust regulatory frameworks for PPPs through ICRC.
However, when a project that has successfully navigated a four-year approval process, secured Federal Executive Council approval, and received clearance from the Ministry of Justice can still be blocked by institutional resistance, it sends troubling signals to potential investors.
A source familiar with the matter, who spoke on condition of anonymity, expressed concern: “Foreign and local partners have devoted vast amounts of time, effort, resources and finances over the last four years in the belief that this is a cardinal program of government that investors can support and expect their investments are protected.”
The source added: “The reputational damage to the Federal Ministry of Health and Social Welfare and this government may far outweigh any short-term considerations.”
Nigeria faces a massive infrastructure deficit estimated at over $3 trillion. The World Bank has consistently identified inadequate infrastructure as a major constraint to economic growth and poverty reduction in the country.
The Federal Government established ICRC in 2005 specifically to provide a clear regulatory framework that would give private investors confidence in the PPP process. Cases like this threaten to undermine that confidence.
WHY IT MATTERS
Nigeria’s PPP framework, established in 2005, was designed to provide private investors with confidence that properly approved projects would be implemented according to agreed terms.
This case tests whether that framework has teeth when confronted with institutional resistance—even resistance that appears to contradict Federal Executive Council approval.
For Nigeria’s investment community, both domestic and foreign, the outcome will signal whether the country’s regulatory approvals carry weight or can be overturned at the implementation stage.
As Nigeria seeks to attract private investment to address its infrastructure deficit, cases like this will be closely watched by potential investors weighing whether to commit resources to Nigerian projects.
The teaching hospital, meanwhile, continues to operate with inadequate student accommodation and aging mortuary facilities while the bureaucratic impasse drags on.
WHAT HAPPENS NEXT?
As of the time of publication, the concession agreements remain unexecuted. The Federal Ministry of Health has acknowledged the “critical importance of these projects in enhancing healthcare delivery and educational facilities” at the institution.
The private partner has filed a formal request for an urgent meeting with the Coordinating Minister “to bring this matter to a close,” noting they have “been on this process for over four years and need to make progress accordingly.”
Sources indicate that the matter may require direct intervention from the highest levels of government if the institutional stalemate continues, given that FEC approval was granted with the expectation of swift implementation.
CONCLUSION
This case represents more than just two stalled hospital projects. It is a test of Nigeria’s commitment to the rule of law in public contracting, the sanctity of Federal Executive Council decisions, and the country’s ability to provide a predictable investment climate for private sector participation in critical infrastructure.
As Nigeria seeks to attract private investment to address its infrastructure deficit, cases like this will be closely watched by potential investors, both domestic and foreign.
The question now is whether the regulatory framework and ministerial oversight will prevail, or whether institutional resistance can effectively override federal approvals—setting a precedent with far-reaching implications for Nigeria’s PPP program.
TIMELINE OF KEY EVENTS
- Early 2022: ICRC approves Outline Business Case for both projects
- March 21, 2022: ICRC issues detailed letter on OBC approval for hostel project
- October 30, 2023: ICRC issues Full Business Case Compliance Certificates
- May 2, 2024: ICRC revalidates FBC certificates for 6 months (original 2023 certificates had expired)
- June 25, 2024: Federal Executive Council approves both projects
- June 2025: Federal Ministry of Justice completes review of concession agreements
- February 19, 2025: ICRC convenes resolution meeting with all parties
- October 23, 2025: Federal Ministry of Health convenes meeting in Abuja
- October 30, 2025: Virtual meeting held; no resolution reached
- November 11, 2025: Private partner requests urgent ministerial intervention
- December 2025: Projects remain unimplemented (17 months after FEC approval)
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NB: Our reporter attempted to reach all parties involved in this story. This investigation is based on official documents, correspondence between parties, and background interviews with sources familiar with the matter.
This is a developing story and will be updated as more information becomes available.
This report was commissioned by Cihan Media Communications and reported by Julius Adeboyega
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