Abstract This study assesses the efficacy of Public-Private Partnerships (PPPs) in tackling Nigeria's infrastructure deficit with an emphasis on infrastructure performance and the influence of macroeconomic conditions on project investments. The study evaluated the effect of PPP investments on infrastructure performance using econometric models (logit and ARDL) and time-series data from 1991 to 2024, looking at factors such real GDP growth, capital spending, and exchange rate variations. The findings suggest that while there is no long-term correlation between PPP investments and infrastructure development, institutional capability, macroeconomic stability, and governance quality attenuate the short-term effects. In particular, private-sector lending, exchange rates, and government capital expenditure showed significant short-term impact on infrastructure investment. The study concludes that well-prepared projects, clear legal frameworks, and stable macroeconomic conditions are crucial for maximizing the success of PPPs. Thus, it is recommended that enhancing governance in public institutions, diversifying financing mechanisms to reduce external vulnerabilities and ensuring macro-economic stability through predictable policies to foster a conducive environment for PPPs. JEL Codes: H54 O18 L33 E22 F43.
Modupe Fausat Aleshinloye (Mon,) studied this question.
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