Economic reforms and their influence on public–private partnership (PPP) models in Nigerian construction industry

Abstract

Purpose This study aims to investigate the impact of fiscal, monetary, regulatory and institutional reforms on the structure, finance and performance of public–private partnership (PPP) projects in Nigeria’s construction sector. Design/methodology/approach A quantitative research design was used in which a survey instrument (structured questionnaire) was used to collect data from construction practitioners who had experience in PPP projects. The data was analyzed using descriptive statistics and exploratory factor analysis (EFA). The EFA was used to extract the underlying reform dimensions that influence the performance of PPP projects. Findings Five reform dimensions emerged from the analysis: institutional and regulatory reform capacity, PPP performance and reform outcomes, macroeconomic and financial risk exposure, investment climate and economic stability and fiscal sustainability. It was found that while reforms are expected to improve transparency and private sector involvement, they are generally considered to be ineffective in reality because of macroeconomic instability and poor institutional enforcement. This is in line with the existing PPP literature that highlights the importance of institutions’ strength, macroeconomic stability and fiscal credibility for the success of PPPs. Practical implications Policymakers should ensure that economic reform policies are aligned with the strengthening of institutional reform capacity and fiscal credibility to improve the robustness of PPP models. Originality/value To the best of the authors’ knowledge, this is one of the pioneering studies that have investigated empirically the reform dynamics of economic reforms that affect the structure and performance of PPP projects in Nigeria’s construction sector.