Nigeria: unsolicited PPP proposals and the ICRC
- Law
- Infrastructure Concession Regulatory Commission (Establishment, etc.) Act, 2005, signed 10 November 2005 1
- Regulator
- Infrastructure Concession Regulatory Commission, Abuja 1
- Process guide
- Unsolicited PPP Process Guide for MDAs, 11 August 2025 2
- Proposal fee
- ₦10 million to ₦100 million, non-refundable, paid via Remita 2
- Project bond
- 1 to 5 per cent of initial project cost within the PAB threshold 2
- Procurement options
- Swiss challenge, modified Swiss challenge or direct negotiation 2
- Legal vetting
- Federal Ministry of Justice, within 30 days of the approval extract 2
The law and the regulator
The Infrastructure Concession Regulatory Commission (Establishment, etc.) Act, 2005 was signed on 10 November 2005 1. Section 2 requires federal bodies to submit priority projects to the Federal Executive Council for approval before any concession contract. Section 4 requires open competitive bidding advertised in at least three national newspapers. Section 5 allows direct negotiation where only one proponent bids or only one meets the prequalification requirements 1.
Section 14 sets up the Commission. Under section 20 it takes custody of every concession agreement and monitors compliance 1. A World Bank country profile updated on 21 March 2023 says regulation 12 of the ICRC PPP Regulations, 2014 lists unsolicited proposals as a form of procurement, with competitive bidding as the default 7.
Submitting a proposal and the fee
Under the ICRC Unsolicited PPP Process Guide of 11 August 2025, the proponent submits an Outline Business Case, a financial model and a draft PPP agreement to the MDA. It pays a non-refundable Unsolicited Proposal Fee into the ICRC TSA account through Remita 2. If satisfied, the MDA forwards the documents to the ICRC. The MDA may hire a transaction adviser 2.
Review, due diligence and the project bond
The ICRC reviews the submission and issues an OBC Certificate of Compliance or advises the MDA. It leads due diligence on the proponent and its partners, covering financial and technical capability 2.
After the OBC certificate, the proponent posts a Project Bond in favour of the ICRC. The bond is 1 to 5 per cent of initial project cost for projects within the Project Approval Board threshold. For larger projects the amount is set in the OBC approval letter. If the proponent defaults, the bond goes to the MDA less a 10 per cent administrative charge to the ICRC 2.
After procurement and negotiation, the preferred bidder forms a special purpose vehicle. The Full Business Case, negotiated agreement and financial model go to the ICRC for an FBC Certificate of Compliance 2.
How the proposal is tested
The Swiss challenge guide does not state a number of days for the matching step 3. The process guide does not set out reimbursement of development costs 2.
- Swiss challenge: the approved concept is made public, the original proponent is prequalified automatically, and challengers submit counterproposals. If the original proponent is not the most responsive, it gets a right of first refusal to match 3
- Modified Swiss challenge: the MDA benchmarks the proposal against comparable projects on six parameters set by the ICRC, including capital cost, operating cost and market competitiveness 4
- Direct negotiation: the ICRC may recommend it where seven listed conditions are substantially satisfied and no conflict of interest exists. Conditions include unique intellectual property, a sole qualified party, urgency and financing exclusivity 5
Approval thresholds
The ICRC Act of 2005 requires Federal Executive Council approval of projects before a concession contract 1. The ICRC PPP Regulatory Notice of 11 August 2025 sets thresholds approved by the President under section 33 of the Act. They follow a Secretary to the Government of the Federation circular dated 7 July 2025 6.
Every PPP needs an ICRC Certificate of Compliance before approval. The notice says approvals without one are null and void. Projects under the threshold regime must be fully privately financed, with no guarantees, comfort letters or government funding 6.
| MDA type | Project cost | Approving body |
|---|---|---|
| Ministry 6 | Above ₦20 billion 6 | Federal Executive Council 6 |
| Ministry 6 | ₦20 billion and below 6 | Ministry Project Approval Board 6 |
| Parastatal or agency 6 | Above ₦10 billion, below ₦20 billion 6 | Supervising ministry's Project Approval Board 6 |
| Parastatal or agency 6 | ₦10 billion and below 6 | Own Project Approval Board 6 |
| Any MDA 6 | Project needs more than one agency 6 | Federal Executive Council 6 |
Common questions
How much is the unsolicited proposal fee in Nigeria?
From ₦10 million for projects below ₦10bn to ₦100 million for projects above ₦100bn, paid to the ICRC 2.
Does the original proponent get a right to match in Nigeria?
Under the ICRC Swiss challenge guide, yes. It gets a right of first refusal to match the most responsive counterproposal 3.
Who approves an unsolicited PPP project in Nigeria?
The MDA's Project Approval Board or the Federal Executive Council, depending on project cost, after an ICRC Certificate of Compliance 6.
Where are the ICRC guides published?
In the ICRC document library 8.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- ICRC: Infrastructure Concession Regulatory Commission (Establishment, etc.) Act, 2005 (10 November 2005)
- ICRC: Unsolicited PPP Process Guide for MDAs (11 August 2025)
- ICRC: Swiss Challenge Guide for MDAs (11 August 2025)
- ICRC: Modified Swiss Challenge Guide (11 August 2025)
- ICRC: Direct Negotiation Guide for MDAs (11 August 2025)
- ICRC: PPP Regulatory Notice for MDAs (11 August 2025)
- World Bank PPP Resource Center: PPP Country Profile, Nigeria (21 March 2023)
- ICRC: Document library (accessed 20 October 2026)
Related
- Ghana: unsolicited PPP proposals
Ghana's PPP Act 2020 (Act 1039) rules for unsolicited proposals: conditions, PPP Office registration, the right to match, the 2 per cent fee and approvals.
- The Swiss challenge explained
How the Swiss challenge works, what the 2017 World Bank guidelines say about it, and the rules in the Philippines, Andhra Pradesh and Nigeria.
- Unsolicited proposals explained
What an unsolicited proposal is, what the 2017 World Bank and PPIAF guidelines say, and the three ways governments add competition to one.
- World Bank and PPIAF guidance on unsolicited proposals
World Bank and PPIAF guidance on unsolicited infrastructure proposals: risks, review phases, fees, disclosure and competition methods.
- Unsolicited proposals and the Swiss challenge in India
How India treats unsolicited infrastructure proposals: World Bank findings, the Andhra Pradesh Act, Meghalaya's 2020 rules and Supreme Court rulings.
- Unsolicited PPP proposals in South Africa under Treasury Regulation 16
How South Africa's amended Treasury Regulation 16 treats unsolicited PPP proposals: who may submit, review fees, prequalification and the development fee.