Bayelsa State Public Private Partnership PPP

STATE HOUSE PRESS RELEASE

STATE HOUSE SCREENS THREE PROJECTS FOR PUBLIC - PRIVATE PARTNERSHIP, AS IT HOSTS CONSULTATIVE FORUM

The State House, in consultation with the Federal Ministry of Finance, Budget and National planning has identified and tentatively screened three of its programmes and projects for possible consideration as pilot cases for Public Private Partnership (PPP).

The Permanent Secretary, State House, Tijjani Umar, stated this, Thursday in Abuja, in his remarks at the First Quarter, 2023 Public Private Partnership Units Consultative Forum (3PUCF) meeting hosted by the State House and organised by the Infrastructure Concession Regulatory Commission (ICRC).

The three projects, according to the Permanent Secretary, are: the State House Wildlife Sanctuary and |Children’s Park, the State House Medical Centre and the State House, Lagos Facilities.

Towards ensuring the success and sustainability of the initiative, Mr Umar disclosed that the State House has embarked on rigorous strategic human capacity – building of relevant staff of its PPP Unit.

“Four State House staff participated in the Basic and Intermediate PPP Courses at the Nigeria Institute of Infrastructure and Public Private Partnership (NII3P), the training arm of the ICRC.

“The State House has also trained three staff on PPP Financial Modelling and Risk Assessment in Accra, Ghana and will leverage on the capacity of officers of the Legal Department who have already enjoyed similar Training on PPP Legal and Regulatory Framework,” the Permanent Secretary said, noting that “additional staff are also being considered to undergo the in-depth MBA training programme on PPP being conducted by the NII3P.”

Giving insight on the Consultative Forum, the Permanent Secretary stated that it provided “a veritable platform for stakeholders in the PPP space to collaborate and exchange ideas on initiatives that are aimed at driving economic growth and development in our country.”

“It also serves as a unique opportunity for MDAs to share experiences, ideas and best practices on the ex*****on of PPP projects across different sectors,” he further stated. He enjoined the Forum to seek ways that technology can enhance and expedite the delivery of viable projects.

In his remarks , the Director General, ICRC, Joe Ohiare, listed some of the great strides of the organisation regarding transactions involving MDAs like the Federal Ministry of Interior, Nigeria Ports Authority, Nigeria Immigration Service and NIMASA, to mention a few.

He added that the ICRC had established the Nigeria Institute of Infrastructure and Public Private Partnership for the purpose of capacity building in the sector.

The occasion witnessed the formal inauguration of the PPP Unit of the State House as well as the presentation of papers on Negotiating PPP Agreements on Government Side; and Beyond P&ID – From Contracts / Projects Failure to Federal Contracts Administration System

Abiodun Oladunjoye
Director (Information)
April 30, 2023

Bayelsa State Public Private Partnership PPP The Bayelsa State Public Private Partnership is open to Corporate Organizations, Business Entities, well meaning individuals and the public for collaborations that will best benefit parties involved.
Invest. Develop. Partner.

The 2021 Finance Bill was signed into law by the Nigerian President on 31 December 2021 and takes effect from 1 January 2022. Below are the top 10 changes:

Top 10 Changes:

Capital gains tax at 10% is chargeable on the disposal of shares worth N100m or above in any 12 consecutive months except to the extent that such proceed is reinvested in the shares of any Nigerian company.
The education tax payable by Nigerian companies has been increased from 2% to 2.5% of assessable profits.
Companies engaged in educational activities are now subject to corporate income tax regardless of whether such activities are of a public character.
A science and engineering levy of 0.25% of profit before tax is payable by companies engaged in banking, mobile telecommunication, ICT, aviation, maritime, and oil & gas with turnover of N100m and above.
FIRS to assess, collect and enforce the payment of Nigerian Police Trust Fund levy. The tax was introduced in 2019 at the rate of 0.005% on the net profit of companies operating in Nigeria.
Imposition of excise duty at N10 per litre on non-alcoholic, carbonated and sweetened beverages. This could translate to an increase in the retail price of products by up to 5% with lower end products bearing higher burden.
The reduction of minimum tax rate from 0.5% to 0.25% of turnover (less franked investment income) will apply to any two accounting periods between 1 Jan 2019 and 31 Dec 2021 as may be chosen by the taxpayer.
FIRS may assess tax on the turnover of a foreign digital company involved in transmitting, emitting, or receiving signals, sounds, messages, images or data of any kind including e-commerce, app stores, and online adverts. Such companies are also obliged to charge, collect and remit VAT to FIRS.
Only FIRS is to be responsible for the administration, assessment, collection, accounting and enforcement of taxes and levies due to the Federation, the Federal Government and any of its agencies except otherwise authorized.
All tiers of government are now empowered to borrow for “critical reforms of significant national impact” in addition to capital expenditure and human development.
Below is a copy of the signed Finance Act 2021

Download Finance Act 2021 Gazette

The 2021 Finance Bill was signed into law by the Nigerian President on 31 December 2021 and takes effect from 1 January 2022. Below are the top 10 changes:

Top 10 Changes:

Capital gains tax at 10% is chargeable on the disposal of shares worth N100m or above in any 12 consecutive months except to the extent that such proceed is reinvested in the shares of any Nigerian company.
The education tax payable by Nigerian companies has been increased from 2% to 2.5% of assessable profits.
Companies engaged in educational activities are now subject to corporate income tax regardless of whether such activities are of a public character.
A science and engineering levy of 0.25% of profit before tax is payable by companies engaged in banking, mobile telecommunication, ICT, aviation, maritime, and oil & gas with turnover of N100m and above.
FIRS to assess, collect and enforce the payment of Nigerian Police Trust Fund levy. The tax was introduced in 2019 at the rate of 0.005% on the net profit of companies operating in Nigeria.
Imposition of excise duty at N10 per litre on non-alcoholic, carbonated and sweetened beverages. This could translate to an increase in the retail price of products by up to 5% with lower end products bearing higher burden.
The reduction of minimum tax rate from 0.5% to 0.25% of turnover (less franked investment income) will apply to any two accounting periods between 1 Jan 2019 and 31 Dec 2021 as may be chosen by the taxpayer.
FIRS may assess tax on the turnover of a foreign digital company involved in transmitting, emitting, or receiving signals, sounds, messages, images or data of any kind including e-commerce, app stores, and online adverts. Such companies are also obliged to charge, collect and remit VAT to FIRS.
Only FIRS is to be responsible for the administration, assessment, collection, accounting and enforcement of taxes and levies due to the Federation, the Federal Government and any of its agencies except otherwise authorized.
All tiers of government are now empowered to borrow for “critical reforms of significant national impact” in addition to capital expenditure and human development.
Below is a copy of the signed Finance Act 2021

Download Finance Act 2021 Gazette

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LAWNEWSPOLICIES
Public-Private-Partnership And Road Infrastructure Development In Nigeria: Understanding The Presidential Executive Order No. 007 Of 2019
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Chigozie Augustine
Chigozie Augustine
October 12, 2022
On Friday, January 25, 2019, the Federal Government of Nigeria (“FGN”), in furtherance of its commitment to infrastructure development being a key growth driver and economic development enabler; issued the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) Order, 2019 otherwise referred to as the Presidential Executive Order No. 007 of 2019 (“EO7” or the “Order”).Made pursuant to the executive powers of the Federation, as vested in the President by the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and section 23(2) of the Companies Income Tax Act (“CITA” – Cap C21, Laws of the Federation of Nigeria, 2004), the Order established the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme (“the Scheme”) as a Public-Private-Partnership (“PPP”) intervention in the delivery of good roads across the length and breadth of the country.

Pursuant to the EO7, private companies will be able to finance construction or refurbishment of federal roads designated as “Eligible Roads” under the Scheme and recoup their investments by utilizing the approved total costs expended on the particular Eligible Roads, as a credit against the annual Companies Income Tax payable by such private companies in the corresponding year of assessment.The value of the credit due to a private sector partner, known as the Road Infrastructure Tax Credit (“Tax Credit”), as calculated in accordance with the terms of the Scheme, will be reflected on the Road Infrastructure Tax Credit Certificate (“Tax Credit Certificate”) to be issued by the Federal Inland Revenue Service (“FIRS”), in line with the conditions stipulated in the Order.

In specific terms, the Scheme, which has a duration of ten (10) years from the date of commencement of the EO7, is set up to:enable the FGN leverage on private sector funding for the construction or refurbishment of Eligible Road infrastructure projects in Nigeria;focus on the development of Eligible Road infrastructure projects in an efficient and effective manner that creates value for money through private sector discipline; andguarantee Participants in the Scheme timely and full recovery of funds provided for the construction or refurbishment of Eligible Road infrastructure projects in the manner prescribed in the EO7.This article provides a synopsis of the Regulations for the Administration and Operation of the Scheme; Eligible Roads; Participants; and application of the Tax Credit granted under

the Scheme.

ELIGIBLE ROAD

The EO7 defines an Eligible Road as any road approved by the President as eligible for the Scheme on the recommendation of the Minister of Finance and as duly notified to Participants and published pursuant to the Order. Such recommendation, however, is expected to be made from a list of roads presented to the Minister of Finance by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Management Committee (“the Committee”), being the implementing and administrative body to be established pursuant to the EO7. As provided in the EO7, the list of Eligible Roads may be updated from time to time by the President on the advice of the Minister of Finance provided that such updates are published in the Official Gazette of the Federal Republic of Nigeria (“FRN”).

ADMINISTRATION AND OPERATION OF THE SCHEME

The Scheme is to be implemented and administered by the Committee established by the EO7.As provided in the Order, the Committee is expected to:

be chaired by the Honourable Minister in charge of Finance while the Honourable Minister in charge of Works is to be the Deputy Chairman. The Permanent Secretary, Federal Ministry of Finance is to act as the Secretary;draw its members from specified Ministries, Departments and Agencies (“MDAs”) of Government (not below the rank of a Director or its equivalent). The relevant MDAs include the Federal Ministry of Finance; Federal Ministry of Power, Works and Housing; Federal Ministry of Industry, Trade and Investment; Federal Ministry of Justice; Bureau of Public Procurement; FIRS; Nigerian Investment Promotion Commission; Securities and Exchange Commission (“SEC”); Infrastructure Concession Regulatory Commission; Budget Office of the Federation; National Bureau of Statistics; Nigerian Investment Sovereign Authority; and The Presidency;facilitate publication, in the prescribed manner, of the following documents: (i) a list of Eligible Roads as published in the Official Gazette of the FRN; (ii) design and specification of Eligible Roads; (iii) a list of required documentation by an applicant desiring to be registered as a Participant in the Scheme; (iv) Project Cost and Completion Timeline bid;review and evaluate applications submitted by any company, or a pool of companies operating through a Fund Manager;register Participants in the Scheme pursuant to the ex*****on of appropriate Memorandum of Understanding (“MOU”) executed between Participants and the Committee;register and designate as an Infrastructure Fund, any special purpose vehicle (“SPV”) set up by a Fund Manager in accordance with the provisions of the Order, in conjunction with the SEC and in compliance with applicable SEC rules and procedures, as appropriate;ensure that the contracts for road construction and refurbishment included in the Project Cost bid submitted by Participants are obtained through a competitive bidding process, and thereafter facilitate the review, evaluation and approval of the submitted Project Cost and Completion Timeline bid; applying the standard procedures adopted by the Federal Ministry in charge of Works;facilitate evaluation by the Federal Ministry in charge of Works, the degree of completion of an Eligible Road infrastructure development project and thereupon issue a certificate of work done on an annual basis;facilitate the issuance, on an annual basis, of a Tax Credit Certificate by the FIRS to a Participant or Beneficiary under the Scheme; within fourteen (14) days of the issuance by the Committee of the certificate of work done;do other things, specifically provided in the First Schedule to the Order, necessary for the effective administration and operation of the Scheme.

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Bayelsa State Public Private Partnership PPP The Bayelsa State Public Private Partnership is open to Corporate Organizations, Business Entities, well meaning individuals and the public for collaborations that will best benefit parties involved.
Invest. Develop. Partner.

A public-private partnership, or PPP, is a contract between a governmental body and a private entity, with the goal of providing some public benefit, either an asset or a service. Public-private partnerships typically are long-term and involve large corporations on the private side. A key element of these contracts is that the private party must take on a significant portion of the risk because the contractually specified remuneration—how much the private party receives for its participation—typically depends on performance.

Public-Private Partnership Success
Popular in many European countries, PPPs have gotten off to a relatively slow start in the United States, but they are increasingly used for large-scale infrastructure and public works projects. Many PPP projects in recent decades have been extremely successful. The high-occupancy toll lanes project in Virginia of the United States is a good example. Several private sector firms participated in this partnership, resulting in cost savings in the millions of dollars. In addition, the collaboration between government and private partners brought expanded highway capacity online years earlier than a traditional government-does-all approach might have done.

Public-Private Partnership Benefits
Public-private partnerships offer several benefits which could be summarized as follow:

They provide better infrastructure solutions than an initiative that is wholly public or wholly private. Each participant does what it does best.
They result in faster project completions and reduced delays on infrastructure projects by including time-to-completion as a measure of performance and therefore of profit.
A public-private partnership's return on investment, or ROI, might be greater than projects with traditional, all-private or all-government fulfillment. Innovative design and financing approaches become available when the two entities work together.
Risks are fully appraised early on to determine project feasibility. In this sense, the private partner can serve as a check against unrealistic government promises or expectations.
The operational and project ex*****on risks are transferred from the government to the private participant, which usually has more experience in cost containment.
Public-private partnerships may include early completion bonuses that further increase efficiency. They can sometimes reduce change order costs as well.
By increasing the efficiency of the government's investment, it allows government funds to be redirected to other important socioeconomic areas.
The greater efficiency of PPPs reduces government budgets and budget deficits.
High-quality standards are better obtained and maintained throughout the life cycle of the project.
Public-private partnerships that reduce costs potentially can lead to lower taxes.
Public-Private Partnership Disadvantages
PPPs also has some drawbacks:

Every public-private partnership involves risks for the private participant, who reasonably expects to be compensated for accepting those risks. This can increase government costs.
When there are only a limited number of private entities that have the capability to complete a project, such as with the development of a jet fighter, the limited number of private participants that are big enough to take these tasks on might limit the competitiveness required for cost-effective partnering.
Profits of the projects can vary depending on the assumed risk, the level of competition, and the complexity and scope of the project.
If the expertise in the partnership lies heavily on the private side, the government is at an inherent disadvantage. For example, it might be unable to accurately assess the proposed costs.

The World Bank has approved a $750 million International Development Association (IDA) credit to support the Nigeria State Action on Business Enabling Reforms (SABER) Program-for-Results.

The Washington-based institution disclosed this in a statement on Thursday.

According to the Bretton Wood institution, the $750 million IDA credit will help Nigeria accelerate the implementation of critical actions that will improve the business-enabling environment in states.

“Nigeria has made progress in advancing reforms to eliminate constraints in the business environment, especially through actions driven by the Presidential Enabling Business Environment Council (PEBEC),” the statement reads.

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“However, Nigeria’s ability to attract domestic and foreign investment remains low compared to its peers. Nigeria’s 36 states and the Federal Capital Territory (FCT) are capable of catalysing private investment but vary significantly in their efforts and ability to do so.

“Given the importance of state-level reforms, the government developed a new program—SABER—to accelerate the implementation of critical actions that improve the business-enabling environment in Nigeria’s states. The government’s SABER program builds on the successes of PEBEC.

“It aims to strengthen the existing PEBEC-national economic council subnational interventions by adding incentives, namely results-based financing to the states and the delivery of wholesale technical assistance–available to all states–to support gaps in reform implementation.

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“The program is open to all states in Nigeria and FCT, given their ability to take concrete steps towards addressing major business-enabling environment challenges around land administration, the regulatory framework for private investment in fibre optic infrastructure, public-private partnerships (PPP) and investment promotion frameworks and services, and business enabling regulatory environment.”

Shubham Chaudhuri, World Bank country director for Nigeria, said the aim is to support private sectors to increase revenues.

“Following the significant progress made by states on fiscal reforms through the State Fiscal Transparency, Accountability and Sustainability (SFTAS) program, the SABER program endeavours to offer similar support to the states to undertake critical business-enabling policy and institutional actions that will incentivise private sector development,” he said.

“Private sector investments remain the major vehicle to create more jobs, increase state’s revenues and improve social and economic outcomes for citizens.”

On her part, Bertine Kamphuis, task team leader, SABER, said the programme is to strengthen states to achieve results-based projects.

“Overall, the SABER program looks to consolidate and deepen business enabling environment reforms across more states,” she said.

“The use of the Program-for-Results model, which ensures disbursement of funds after achieving results, helps the government in strengthening its own program by incentivising institutional performance at the state level through results-based financing. States will be responsible for achieving the program results and thus will be leading the implementation of the program.”

The bank also said the programme is in line with Nigeria’s National Development Plan (NDP), which sets an ambitious strategy to pursue sustained private sector-led economic growth, generating 21 million full-time jobs and lifting 35 million people out of poverty by 2025.

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Bayelsa State Public Private Partnership PPP The Bayelsa State Public Private Partnership is open to Corporate Organizations, Business Entities, well meaning individuals and the public for collaborations that will best benefit parties involved.
Invest. Develop. Partner.

The Government and the private sector could do a lot to improve infrastructure in the state and for us to effectively engage the government as private investor using PPP option please come talk with us at the public private partnership office at the old secretariat building Yenagoa

Africa needs to develop vibrant, resilient PPP framework – SGFPublished 1 day agoon July 4, 2022By NNN
Boss Mustapha the Secretary to the Government of the Federation SGF says there is the need to develop and imbibe a resilient Public Private Partnership PPP framework in Africa The SGF said this on Monday in Abuja at a two day Africa Public Private Partnership Network AP3N Investment programme with the theme Financing Africa s Infrastructure through PPP hellip
Africa needs to develop vibrant, resilient PPP framework – SGF
NNN: Boss Mustapha, the Secretary to the Government of the Federation(SGF), says there is the need to develop and imbibe a resilient Public Private Partnership (PPP) framework in Africa.

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The SGF said this on Monday in Abuja, at a two-day Africa Public Private Partnership Network (AP3N) Investment programme, with the theme, “Financing Africa’s Infrastructure through PPP”.

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The programme was organised by the Infrastructure Concession Regulatory Commission (ICRC).

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Mustapha said that a resilient and vibrant PPP was necessary in order to facilitate rapid infrastructure transformation on the continent.

He said the current economic growth pattern on the continent stressed the importance of private sector investment through PPP in promoting Africa’s growth and structural transformation.

“Hence, identifying the private sector development as an engine of sustainable structural transformation through PPPs is of critical importance to the continent,” he said.

Mustapha, however, said that to stimulate and create a vibrant private sector on the continent and accelerate infrastructure development, some issues needed to be addressed.

According to him, there is definitely the need to create a welcoming investment climate.

“This can be achieved by reducing risks and costs of doing business and by securing private property rights, improving governance, fighting corruption, simplifying regulations, and promoting competition.

“African governments must also resist pressure to erect trade barriers for intra-African trade to flourish. Currently, intra-African trade among African states is about 10 per cent of total exports.

“This is the lowest among other regions in the world. But we strongly believe that with the initiative of the African Continental Free Trade Agreement, the situation will drastically improve.”

He said there was the need for financial sector development by strengthening regulatory and institutional frameworks to improve governance and increase competition.

“Also to improve access to finance and financial literacy, developing payment systems, and enhancing creditor rights, similarly, access to finance by the private sector is equally the very key.”

The SGF said the Federal Government had continued to encourage and support strengthening of the framework for Public Private Partnership (PPP) policy in Nigeria.

According to him, the current financial situation of Nigeria occasioned by the global COVID-19 pandemic and dwindling revenue has made the shift to PPPs more compelling than before.

He, however, said the government would continue to maintain the integrity, adding that transparency must form the basis of all decisions on PPPs to ensure the right framework for effective partnership and value for money.

The Acting Director-General, ICRC, Michael Ohiani, said the theme of the Summit was apt, given the critical role played by PPPs in the transformation of global economies.

Ohiani maintained that the vision of AP3N is to have a network of PPP experts across the African continent to find concrete solutions to bridge infrastructure gaps in the continent.

He said this was done by bringing together PPP units, professionals and experts across the continent to design, develop, and implement infrastructure projects in tune with global best practices for infrastructure and service delivery.

“We believe that this continental body needs to continually provide the avenue for interactions and networking among African PPP practitioners, to have a common body of knowledge.

“This is especially so, as we have our peculiar circumstances and we need to deal with our infrastructure and service provision challenges with respect to our ways while keeping a watchful eye on global trends and developments.”

The director-general said Nigeria was not spared from the financial challenges that resulted from COVID-19.

However, he said there was a growing need to salvage projects which were under implementation as well as develop bankable and viable PPP projects for investment.

“For 2022, ICRC intends to gazette a pipeline of 53 eligible and bankable PPP projects worth about 22 billion dollars very soon,’’ he said.

Ohiani said the key in the 21st century was for governments to enhance the investment environment for national-level investment for local and foreign investors.

The Director-General, Nigerian Governors Forum, Asishana Okauru, said the forum had collaborated with ICRC to establish the Nigeria Public Private Partnership Network.

Okauru, represented by Mr Eghosa Omoigui, Head Stakeholders , NGF, said the network was established to address the issues and bottlenecks toward infrastructure development of strategic sectors of the subnational economy by PPP.

He said the NGF believed that improving the capacity and resources of state governments to prepare PPP pipelines and bankable projects was key to achieving SDG 7, which is industry, innovation and infrastructure.

Okauru said that this would offer a sustainable long-term approach to improving social infrastructure, enhancing the value of public sector assets, and making better use of taxpayers’ money.

NewsSourceCredit: NAN

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Related Topics:COVIDEghosa OmoiguiFederal GovernmentICRCNAN) Infrastructure Concession Regulatory Commission (ICRC)NGFNigeriaPPPPublic Private Partnership (PPP)SDGSGF

ICRC Set To Gazette $22bn Pipeline Projects - National Economy Acting director-general of Infrastructure Concession Regulatory Commission (ICRC) Mr Michael Ohiani has disclosed that the commission intends to gazette a