The Federal Executive Council (FEC) has given the green light to three key public-private partnership (PPP) projects aimed at addressing Nigeria's infrastructure deficits and stimulating economic growth in critical sectors. Meanwhile, the Central Bank of Nigeria (CBN) has raised concerns that the financial decisions of the 36 state governments are exacerbating inflation, warning that poor fiscal management could undermine efforts to stabilize prices and strengthen the economy.
Approved PPP Projects
The approved initiatives include the establishment of a Smart National Transport Data Bank under the Nigerian Institute of Transport Technology (NITT), as well as two independent power projects (IPPs) at the Onne and Apapa port complexes. The FEC stated in Abuja that these approvals reflect President Bola Tinubu's commitment to accelerating infrastructure development by leveraging private sector participation, enhancing economic efficiency, and fostering sustainable national growth.
The approvals were granted following oversight by the Infrastructure Concession Regulatory Commission (ICRC), which reviewed the Outline Business Case, guided due diligence and negotiations, and approved the Full Business Case in line with its regulatory framework before the projects were submitted to the FEC for final approval.
Smart National Transport Data Bank
Speaking on the significance of the approvals, ICRC Director-General Jobson Ewalefoh noted that these projects represent a deliberate shift toward well-structured PPPs that attract private investment and deliver tangible economic benefits. He emphasized that Nigeria's greatest transport challenge is not only infrastructure but also the lack of reliable, usable data. The Tinubu administration, through the approval of the National Transport Data Bank, has laid the foundation for a data-driven transport system that enhances planning, enforcement, and overall sector efficiency.
Ewalefoh explained that the Smart National Transport Data Bank, operated by NITT, will function as a nationwide digital infrastructure for transport intelligence. It will integrate real-time data from road, rail, air, and marine systems, utilizing technologies such as vehicle tagging and automated number plate recognition to assist with traffic management and enforcement. He noted that the project will improve the government's ability to plan infrastructure investments using data, reduce system inefficiencies, and generate new revenue streams through automation and digital compliance.
Independent Power Projects at Ports
Regarding the approved power projects, the ICRC boss described the IPPs at the Onne and Apapa ports as critical interventions to address unreliable electricity supply, which is a major constraint to industrial productivity. The ICRC and the Federal Ministry of Arts, Culture, Tourism, and the Creative Economy have also commenced discussions on developing major tourism infrastructure projects across Nigeria through PPPs, following a meeting between Ewalefoh and Minister Hannatu Musawa in Abuja.
CBN Warns States on Inflation
During an engagement with state government officials organized by the Nigeria Governors' Forum Secretariat, CBN Deputy Governor in charge of the Economic Policy Directorate, Muhammad Abdullahi, stated that inflation control requires strong cooperation between the federal and state governments. In a statement released yesterday, Abdullahi explained that states influence inflation through various channels, including borrowing decisions, rising domestic debts, spending patterns, wage obligations, salary arrears, contractor financing arrangements, and poor coordination in the management of Federation Account Allocation Committee (FAAC) receipts, debt servicing, and public cash flows.
He warned that excessive spending and weak fiscal coordination by states could frustrate the success of the CBN's planned transition to an inflation-targeting monetary policy framework. Abdullahi said the new framework would focus on achieving stable prices through a more transparent and forward-looking monetary system, adding that such a policy can succeed only when all levels of government maintain fiscal discipline.
Earlier, the Director of the CBN's Monetary Policy Department, Victor Oboh, described inflation targeting as a "win-win framework" that would benefit households, businesses, and governments by improving confidence in economic policies and reducing economic uncertainty. Speaking on behalf of the Director-General of the NGF, the Forum's Executive Director for Policy, Strategy and Research, Olalekan Yunusa, commended the CBN leadership for involving state governments early in the transition process.
