CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Public-Private Partnership (PPP) refers to a sustained and long-term collaborative relationship between the public and private sectors for the provision of goods and services. Through PPP arrangements, the public sector seeks to combine its available resources with the technical expertise, efficiency, and capabilities of the private sector in order to provide goods and services to the public at the best possible value for money (Ministry of Finance, Singapore, 2009).

The adoption of Public-Private Partnerships should be based on mutual benefits and should not be structured in a manner that allows private investors to benefit at the expense of local citizens. This concern explains why some countries, such as Hong Kong, have remained cautious and skeptical about PPP arrangements. Although most forms of PPP involve contractual relationships between public and private parties, the long-term nature of such contracts often creates a strong and sustained mutuality of interest between the parties involved (Kee & Forrer, 2012).

Public-Private Partnerships should not simply be regarded as another stage in the procurement process. Due to their long-term nature, PPP arrangements differ considerably from traditional procurement contracts, which are often associated with a short-term “claims culture.” Evidence from operational contracts in countries with more mature PPP programmes indicates that, in many cases, public and private partners can recognize and maintain this mutuality of interest without undermining the mechanisms contained in formal contracts for determining and monitoring performance (Cheung & Chan, 2011).

In line with national aspirations concerning Public-Private Partnerships, the Imo State Government has also adopted PPP as an appropriate and timely economic strategy for stimulating economic growth, employment generation, and overall development. This is reflected in the implementation of PPP schemes across the four-point agenda of the administration, which includes the following areas:

1. Physical Infrastructure: This covers the provision and development of housing, water, and electricity.

2. Economic Expansion and Employment: This includes industrial development, agricultural development, tourism, and other activities capable of expanding economic opportunities and generating employment.

3. Rural Development: This focuses on rural access, rural industries, and other measures intended to improve economic and social conditions in rural communities.

4. Service Delivery and Good Governance: This involves the provision of basic social services such as health, education, law and order, and security. It also covers public service empowerment through training, improved work environments, pensions, housing, and transportation, as well as citizens’ inclusion and participation involving women’s groups, youths, traditional rulers, and elderly statesmen.

The adoption of PPP by the state government is therefore expected to strengthen the capacity of government to provide infrastructure and public services while making use of private-sector resources and expertise.

1.2 Statement of the Problem

The state of infrastructure in Nigeria, like that of many developing countries, remains far from satisfactory. The housing situation, for instance, is poor both quantitatively and qualitatively (Oyedele, 2012). Many existing public infrastructures have deteriorated over time and require repair, rehabilitation, refurbishment, or complete replacement.

Government is responsible for planning, organizing, controlling, and supervising the affairs of people living within a given area in order to ensure that citizens enjoy a conducive environment and a sense of belonging. It is therefore the responsibility of government to introduce and implement appropriate measures that can make the environment beneficial and suitable for all members of society.

The infrastructural condition in Imo State is not substantially different from what exists in other parts of Nigeria. According to the Commissioner for Commerce and Industry, Dr. Jude Akubuilo, the prevailing condition of industrial estates in the state has been very disturbing. Most manufacturing establishments, particularly Sunrise Flour Mills, Niger Steel, and Niger Gas, had remained closed for several years (Sobechi, 2011).

The Commissioner further explained that the state had lost several opportunities to position itself as a major industrial base within the South-East and Nigeria as a whole. He argued that there was no sufficient justification for the continued closure of the affected companies. The closure of Sunrise Flour Mills had resulted in the loss of opportunities for value addition within the food chain. Similarly, the state had lost access to building and ancillary materials, foundries, and engine tooling that could have been provided through Niger Steel, as well as acetylene and oxygen gas that could have been produced by Niger Gas Company.

The Commissioner also noted that the closure of these industries had led to the loss of employment opportunities that would otherwise have been created. Consequently, the Ministry developed a roadmap aimed at reviving the affected firms through the adoption of the Public-Private Partnership approach.

Given the circumstances described above, a number of important questions arise. First, how can private-sector investors be encouraged and attracted to invest in Nigeria generally and in Imo State in particular? Second, if the private sector mobilizes the necessary financial resources for infrastructural development, would such involvement amount to government relinquishing its responsibilities or authority to private interests? Third, can Public-Private Partnership, together with other elements of New Public Management (NPM), provide an effective solution to the inefficiency of public organizations in the delivery of public services in Nigeria and Imo State?

In view of these questions and the precarious condition of the Nigerian economy, the central problem of this study is therefore to determine which particular variant of Public-Private Partnership, among the various existing forms, is most appropriate and most likely to generate efficiency, stability, and adequate funding for the effective management of public organizations in Imo State and Nigeria generally.

1.3 Objectives of the Study

The general objective of this study is to assess the influence of national policy on Public-Private Partnership on infrastructure project delivery in Nigeria.

The specific objectives of the study are to:

1. Investigate whether there is any significant relationship between the influence of national policy on Public-Private Partnership and infrastructure project delivery.

2. Determine the effect of government partnership with the private sector on service delivery.

3. Examine whether Public-Private Partnership policy promotes efficiency in the public service.

4. Identify the various ways through which private investors can be attracted to Nigeria generally and Imo State in particular.

5. Make recommendations for the improved application of Public-Private Partnership in public organizations in Nigeria.

1.4 Research Questions

The study seeks to provide answers to the following research questions:

1. Is there any significant relationship between the influence of national policy on Public-Private Partnership and infrastructure project delivery?

2. What is the impact of government partnership with the private sector on service delivery?

3. Is there any significant relationship between Public-Private Partnership policy and efficiency in the public service?

4. What are the various ways through which private investors can be attracted to Nigeria generally and Imo State in particular?

5. What recommendations can be made for the improved application of Public-Private Partnership in public organizations in Nigeria?

1.5 Hypotheses of the Study

Hypothesis One

H₀: There is no significant relationship between the influence of national policy on Public-Private Partnership and infrastructure project delivery.

H₁: There is a significant relationship between the influence of national policy on Public-Private Partnership and infrastructure project delivery.

Hypothesis Two

H₀: There is no significant relationship between Public-Private Partnership policy and efficiency in the public service.

H₁: There is a significant relationship between Public-Private Partnership policy and efficiency in the public service.

Hypothesis Three

H₀: Public-Private Partnership will not reduce inefficiency and ensure effective service delivery in public organizations in Imo State.

H₁: Public-Private Partnership will reduce inefficiency and ensure effective service delivery in public organizations in Imo State.

1.6 Significance of the Study

Empirically, this study is intended to bring to the forefront the risks, rewards, and benefits associated with Public-Private Partnership. It also seeks to address misconceptions surrounding the concept and encourage its wider application and adoption as a model of New Public Management in public organizations in Imo State and Nigeria generally.

The findings of the study are expected to assist policymakers and those responsible for policy implementation in identifying and avoiding possible weaknesses, pitfalls, and grey areas that may arise during the implementation of PPP arrangements.

Theoretically, the study will contribute to existing knowledge on Public-Private Partnership as a viable option for infrastructural development in Nigeria generally and Imo State in particular. It will also serve as useful reference material for administrators, policymakers, public managers, researchers, and other stakeholders at various levels of government.

The study is therefore expected to broaden understanding of PPP as an alternative strategy for addressing infrastructural deficiencies and improving the effectiveness of public-sector service delivery.

1.7 Scope of the Study

The study focuses on assessing the influence of national policy on Public-Private Partnership on infrastructure project delivery as an option for infrastructural development in Imo State and Nigeria generally.

The study will examine in detail the major issues surrounding the adoption of Public-Private Partnership as a strategy for infrastructural development in Imo State. Particular attention will be given to the role of PPP in addressing infrastructural challenges, improving service delivery, attracting private-sector participation, and promoting efficiency within public organizations. The study covers the period from 2007 to 2012.

1.8 Limitation of the Study

A study of this magnitude cannot be successfully completed without the researcher encountering certain constraints and limitations. Therefore, this study does not claim to provide completely exhaustive or holistic information on Public-Private Partnership as an option for infrastructural development in Nigeria.

Rather, the study seeks to highlight the major issues relating to the justification for and challenges associated with PPP as an option for infrastructural development in Nigeria generally and Imo State in particular.

One of the major limitations of the study is the scarcity of data and the near absence of reliable information on the subject, particularly in printed or hard-copy materials. This is largely because Public-Private Partnership remains a relatively new public management strategy in Nigeria.

Another major limitation is the fact that Imo State, unlike Lagos State and some other locations, does not have a sufficiently large number of institutions or projects developed through PPP initiatives. This limits the availability of local examples and documented evidence that could be used for the study.

As a result of these limitations, the researcher had to obtain and rely extensively on electronic materials and soft-copy sources in gathering relevant information for the study.

1.9 Operationalization of Key Concepts

Public-Private Partnership

Public-Private Partnership refers to the collaboration between government and private-sector organizations in the implementation and delivery of public services, programmes, and projects.

Evaluation

Evaluation refers to the systematic process of assessing the design, implementation, effectiveness, and impact of programmes, policies, or projects.

Infrastructure

Infrastructure refers to physical structures and facilities that support and facilitate the production of goods and services, although such structures may not directly form part of the production process itself.

Management

Management refers to the activities involved in planning, controlling, directing, coordinating, and monitoring people and resources within an organization in order to achieve the desired organizational goals and objectives.

Strategy

Strategy refers to a method, approach, or plan deliberately selected and adopted in order to achieve a desired future outcome, attain a specific goal, or provide a solution to a particular problem.

Public Organization

A public organization refers to an institution that is owned, controlled, funded, and managed by the government for the purpose of providing services or carrying out public responsibilities.

1.10 Organization of the Study

The study is organized into five chapters. Chapter One presents the introduction and provides the background to the study, statement of the problem, objectives, research questions, hypotheses, significance, scope, limitations, and operationalization of key concepts.

Chapter Two reviews related and relevant literature connected with Public-Private Partnership, national policy, infrastructure project delivery, and other related concepts.

Chapter Three presents the research methodology adopted for the study, including the research design, sources of data, methods of data collection, population and sampling procedures, and techniques for data analysis.

Chapter Four focuses on the presentation, analysis, and interpretation of the data collected for the study.

Chapter Five presents the summary of the study, conclusion, and recommendations based on the findings.