Critical Success Factors of Public-Private-Partnership Projects in Nigeria

Abstract

The study investigated Critical Success Factors (CSFs) of PPP projects in Nigeria, to identify their relative importance in promoting good governance. Data obtained from experienced professionals and clients in PPP projects were critically analysed using influence index value. A total of 26 constraints and 12 CSFs were considered in the process. The completed questionnaire comprised three parts; viz. the respondents' professional background, their years of experience and the perceived importance of CSFs on PPP projects. Pilot survey was conducted to ensure the efficacy of instruments administered. Following the analysis of the survey, 26 constraint factors such as: political (6 sub-factors), economic (6 sub-factors), legal (7 sub-factors), and technical/other (7 sub-factors) factors were determined. Results revealed that, good governance, protective policy against political risks, appropriate risk allocation and risk sharing, strong private consortium, political stability and favourable legal framework top the list of the most Critical Success Factors for realizing PPP projects in Nigeria. Other important success factors include: government involvement in providing vital guarantees, genuine commitment of partnering parties, and political support for long-term loans. It is concluded that, outcome of the survey will guide PPP stakeholders and government agencies on the CSFs of PPP project delivery in Nigeria. It is thus recommended that government and relevant PPP stakeholders should avail of the findings of the survey as references for increasing awareness, efficiency and effectiveness of PPP approach to infrastructure development projects.

Keywords: Critical Success Factors, Nigeria, Public Private Partnership.