Evaluating The Effectiveness Of Public-Private Partnerships In Accelerating Renewable Energy Deployment In Nigeria

Abstract

This study analyzed the contribution of public-private partnerships (PPP) to the acceleration of
the deployment of renewable energy in Nigeria. Even with the growing policy frameworks,
abundant renewable resources, and increasing policies in place, renewable energy utilization lags
significantly, accounting for only 2% of the country’s overall electricity generation capacity,
which indicates a mismatch between policies and their implementation. Its existing PPP
frameworks, policies, and regulations in Nigeria vis-à-vis international models from South
Africa, Morocco, and India, employing legal doctrinal research methodology. The study
revealed some major flaws in Nigeria's PPP mechanisms, such as institutional silos, regulatory
unpredictability, inefficient risk distribution, scant financial creativity, and piecemeal project
implementations. Unlike Morocco's MASEN or South Africa's IPP Office, there is no
renewables agency in Nigeria with an all-embracing approach that assumes complete
responsibility for renewables. Simultaneously, the country’s risk mitigation frameworks are still
substandard relative to developed countries. The analysis showed that Nigeria suffers from
poorly designed governance and institutional frameworks due to low integration of critical
bodies alongside capacity weaknesses to carry out the intended activities. Tackling these
challenges, the study designed a hybrid PPP framework suited to Nigeria’s needs by establishing
a Renewable Energy Investment Agency, switching to a programmatic procurement model,
adopting robust risk management strategies, and creating novel funding structures. The study
concluded that partnerships can be effective in enhancing the renewable energy and sustainable
development in Nigeria through the use of Public Private Partnerships (PPP) by overcoming the
systemic barriers and utilizing the nation’s renewable resources.