Of ‘Greater Lagos, Smart City’ Vision and PPP

Huge socio-economic infrastructure remains a greater need of most megacities. Raheem Akingbolu examines how public-private partnerships financing model is filling the gap in Lagos.

Lagos is Africa’s model and fastest-growing megacity with a population growing 10 times faster than that of New York and Los Angeles, and more than the population of 32 African countries combined.
As it is common to megacities globally, Lagos has grappled with shortage of socio-economic infrastructure required to sustain its population.

Huge infrastructure gap in the country further exacerbated the problem for Lagos. Obsolete, inadequate and completely dearth of infrastructure and basic facilities in most parts of Nigeria: dilapidated roads, school buildings, healthcare facilities, poor waste management, among others fuel increasing influx of people into Lagos.
According to the state government, 86 visitors averagely enter Lagos every minute or 123,440 visitors daily – and they have no plans to leave.

Facebook data on coordinated migrations indicated that Lagos recorded the highest number of urban migrations in the world at 18.6 per cent in a period of two years (2002 – 2012).

As a result, facilities and social amenities are overstretched, housing is in acute shortage giving rise to slum settlements. Unemployment rate increases, security is further impacted while crime rate increases.
Global rating agency, Moody’s, estimated that bridging infrastructure deficit in Nigeria would take about $3trn investment.

Despite the state’s Internally Generated Revenue (IGR) being the highest in the federation combined with the statutory federal allocations, they are inadequate in meeting the provision of socio-economic infrastructure.
Successive administrations in Lagos State conduct regular needs assessment, have and continue to demonstrate good understanding of how to solve the problems of infrastructure needs of the Lagos megacity.

One of the solutions is by collaborating with private sector investors, and this necessitated that creation of the Lagos State Office of Public Private Partnerships as a vehicle to seek alternative funding to increase investment in new and upgrade existing infrastructure, and upscale delivery of quality social services to more residents of the state.

First created in 2008, and backed by the act of parliament in 2011, the PPP Office has become a foremost institution in the state’s infrastructure renewal agenda. Its functions include: identify and analyse long-term development objectives, risk allocation, and craft legal and institutional framework needed to support this new model of service delivery.

By working in collaboration with Ministries, Departments and Agencies, it also provides effective governance, monitoring mechanisms and allocates risks and responsibilities among the various stakeholders implementing PPP programmes/projects in critical sectors such as transportation, health, education, traffic management, waste management, housing development, agriculture etcetera.
Thus, PPP has remained a strategic mix in the development agenda of Lagos State Government, from the administration of former Governor Bola Tinubu, which laid the foundation for aggressive infrastructure renewal masterplan. It is the same with the administrations of ex-Governors Babatunde Raji Fashola and Akinwunmi Ambode, which accentuated the Lagos Megacity Project with various massive infrastructure projects.

Continuing in that trajectory, the incumbent administration of Governor Babajide Sanwo-Olu also regards PPP as a veritable strategic vehicle for achieving the key objectives of the T.H.E.M.E.S agenda of the government towards the ‘Greater Lagos’ and ‘Smart city’ initiatives.

Speaking on the state infrastructure renewal agenda, the Director General, Lagos State Office of Public Private Partnerships, Mr. Ope George, said the state government adopts a unique PPP model called ‘people-friendly PPP projects’ to meet the huge infrastructure needs in the state, boost capacity for efficient service delivery and job creation.

According to him, the expansion of the Lekki-Ajah-Epe Expressway, the first major PPP facility in the state, headlines the gain of public-private synergy in infrastructure renewal. The road has increased the potentials of the corridor in terms of attracting investments in real estate, industrial concerns and commerce. Dangote Refinery and Petrochemical complex, Lekki cargo airport and deep seaport are few examples.

Among other numerous notable PPP projects – completed, ongoing and those planned for the future – is the Bus Rapid Transit (BRT), which moves average 200,000 commuters daily and has helped in reducing travel time by 30 per cent and creating over 5,000 direct and indirect jobs.

Lagos State is leading with six PPP-initiated Independent Power Plants (IPPs) in an unprecedented step towards achieving efficient electricity power supply for improved socio-economic services both for government and residents of the state.
These include Akute Power Plan (12.55MW) for the Adiyan/Iju waterworks, Island Power Plant (10MW), Alausa Power Plant (10.4MW), Mainland IPP (8.8MW) at the G.R.A. old secretariat, Lekki Peninsula IPP (6MW). They provide 24-hour light to government offices, courts, health institutions and streetlights in parts of the Lagos Island and Lagos Mainland Central Business Districts.

Also, the ongoing Imota Power Project on completion will connect rice farmers at the Imota Rice Mill, as part of measures by the state government to boost food security. These power plants also help to reduce carbon footprints.
The establishment of the Lagos Aquaculture Centre of Excellence, a PPP model of setting up fish farms in clusters to grow aquaculture in the state, also boosts food supply and job creation.

George explained further that the Lagos PPP strategy includes identifying and implementing projects that have immediate impact and multiplier effects on Lagos people, and which they can see. The second is working on long-term projects.
‘‘The unique thing about PPP Lagos – we call it PF-PPPs meaning People-Friendly PPPs. In Lagos you have to do PPPs that people can see and can get value from immediately. A transaction like the Fourth Mainland Bridge takes some time. People will see it when the construction starts going up. The transactions involve a lot of paperwork and agreements. So, we get more involved in ones with immediate impact.

‘‘For instance, we have a Bicycle shared scheme in collaboration with a private company. We tell people that you don’t need to get into traffic all the time. Within the Alausa Secretariat, you can pick a bicycle and ride to any of the ministries. It is very simple. You find it in the city of London. It used to be Barclays; they have it in Beijing, China as well. There’re also health benefits in riding these bicycles. Initially, we thought people wouldn’t buy into the idea, but they are using these bicycles,’’ George said.

PPP is also impacting the Lagos healthcare landscape by increasing access of more Lagosians to qualitative healthcare. Examples are Maternal and Child Hospitals in Ajah, Eti Osa and Alimoso, equipped with modern facilities, and launch of e-health smart information platform and drone services.

The ultra-modern Medical Park in Ikoyi, a centre of medical excellence with state-of-the-art equipment and specialists from diverse fields of medicine, is also meant to significantly reduce overseas medical tourism among Nigerians.
The Ilubirin Housing Estate built on reclaimed land in Ikoyi, at the foot of the 3rd Mainland Bridge, opposite the Lagos Lagoon Waterfront, is among numerous PPP initiatives to reduce housing deficit in Lagos.

The construction of ultra-modern hostel facility comprising 16 blocks of 94 rooms each, with 376 bed spaces per block on a PPP arrangement, at the Lagos State University (LASU), Ojo, will not only solve the accommodation problems for the students, it will enhance learning.

Road and transport infrastructure include the proposed 38km long 4th Mainland Bridge, connecting Lagos Island via Lekki, Langbasa and Baiyeku towns, across Lagos Lagoon to Itamaga in Ikorodu. The Crescent Island Toll Road project, which entails reclaiming and development of 150 hectares of land into a link bridge to connect the Lagos Mainland, is another.

Partnership with Artezia Traffic Solutions for the deployment of a technology solution that live-records traffic infractions, enhances vehicle road worthiness compliance, as well as responsible driving on Lagos roads, is another PPP project.
George while revealing that significant progress has been made on the PPP-funded red and blue rail lines on the Badagry-Marina corridors, was optimistic that Lagosians would begin to enjoy rail commuting by the end of 2023. The facility will reduce travel time in the city.

The director general of Lagos PPP Office disclosed further that the state is able to maximize PPP to accelerate socio-economic growth and development of the state because it is thinking and working smart.
He stated that Nigeria has lagged behind on the infrastructure development index for long, and trying to play catch up amidst paucity of funds and high foreign exchange could worsen the situation.

‘‘I think on the part of Lagos, we’ve realised that the focus has to be on things that can quickly make an impact. There are projects that are fantastic to do, but you also have to judge the level of impact and the time. If there are projects you can do quickly that can have a multiplier effect, you jump at them and do them, while you also do the long-term projects on one side,’’ he stated.

George asserted that Lagos PPP model was working due to the enactment of a legal framework, strengthening of the ease of doing business, raising confidence and trust in the institutions of government and removal of bureaucracies among other factors, which make partnership with the state government attractive to private sector investors.
With Lagos State being assigned AAA by the internationally-renowned rating agency, Fitch, George assured that the state government would do everything possible to keep the state credible and attractive to investors to tap into its rich and vast investment potentials across all sectors of the state economy.