Investigation of Financial Close Challenges in PPP Road Projects in South West Nigeria

Achieving financial close on public-private partnership road projects in Nigeria remains a significant challenge, with several high-profile concessions stalling due to financial structuring difficulties. This study investigates the financial close challenges in PPP road projects in the South West geopolitical zone, focusing on concession projects in Lagos, Ogun, and Osun States. A descriptive survey design was employed, with 78 respondents including infrastructure financiers, legal advisers, quantity surveyors, and government transaction advisers. Structured questionnaires and review of project financial close documentation formed the data sources. Analysis used descriptive statistics and content analysis. Findings reveal that traffic demand uncertainty, foreign exchange risk on debt service, inadequate government fiscal support mechanisms, and lengthy procurement processes are the primary financial close barriers in South West PPP road projects. Quantity surveyors in PPP advisory roles are found to contribute most value to output specification costing and construction phase payment mechanism design, but are less engaged in project finance structuring and revenue modelling. Recommendations include reform of the federal and state PPP legal frameworks to provide stronger government support instruments, training of quantity surveyors in transport economics and revenue forecasting, and creation of a standardised payment mechanism template for South West road concessions. Keywords: PPP, financial close, road projects, South West Nigeria, project finance