UNIVERSITY OF VAASA 

 

FACULTY OF PHILOSOPHY 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Raimi-Lawal Adekunle Raimi 

 

ASSESSING THE IMPACT OF MANAGEMENT CONTROL MECHANISM ON 

PROJECT PERFORMANCE IN PUBLIC-PRIVATE PARTNERSHIP 

 

A Case study of Lagos State, Nigeria 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                Master’s Thesis in  

                                                                                                                                Public Management 

                                                                           

                             

 

 

VAASA 2017 

 



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TABLE OF CONTENTS                                                                                                   Page 

LIST OF FIGURES 4 

LIST OF TABLES 7 

ABSTRACT 9 

1. INTRODUCTION 11 

1.1. Research Background 13 

1.2. Research Hypothesis 16 

1.3. Research Questions 17 

1.3.1. Main Research Question 17 

1.3.2. Sub-Questions of the Study 17 

1.4. Scope of Study 18 

1.4.1. Research Statement 18 

1.5. Limitations to the Study 24 

1.6. Structure of the Study 25 

2. MANAGEMENT OF PUBLIC-PRIVATE PARTNERSHIP 27 

2.1. Principles of Management and Management Practices 33 

2.2. Public-Private Partnership 40 

2.2.1. Kinds of Public-Private Partnership 43 

2.2.2. Types of Public-Private Partnership Arrangements 47 

2.2.3. Public-Private Partnership and Public Opinion 49 

2.3. Organisational Culture 52 

2.4. PPPs as a Combination of Management Practices of Public and Private Organisations 59 

2.4.1. An Overview of Provision of Public Goods, Services and Public Infrastructural 

Facilities 60 

2.4.1.1. Public Organisation 69 

2.4.1.2. Public Service Ethos 74 

2.4.1.3. Private Organisations 78 



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2.4.1.4. Business Ethos 81 

3. RESEARCH METHODOLOGY 85 

3.1. Basics 85 

3.2. Research Process 86 

3.3. Research Approach 87 

3.4. Data Collection and Analysis 88 

3.4.1. Data Collection Instrument 88 

3.4.2. Data Collection Procedure 92 

3.4.3. Data Analysis 92 

3.5. Research Respondents and Research Setting 92 

3.5.2. Research Setting: Organisations in Lagos State, Nigeria 93 

3.6. Reliability and Validity 93 

3.7. Ethical Considerations 95 

4. DATA ANALYSIS AND DISCUSSION 96 

4.1. Data Analysis Guidelines 96 

4.2. First Dimension: Profile of Respondents 97 

4.3. Second Dimension: Respondents’ Past Work Experience 104 

4.4. Third Dimension:PPP Project Management In Lagos State, Nigeria 107 

4.5. Fourth Dimension: Comments 146 

4.6. Summarized Analysis of All Four Dimensions 147 

5. CONCLUSION 149 

5.2. Future Research Directions 152 

LIST OF REFERENCES 154 

APPENDICES 168 

APPENDIX 1. Recruitment Scandals in Nigeria’s Public Service Sector 168 

APPENDIX 2. Research Questionnaire 170 



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APPENDIX 3. Cover Letter 176 

APPENDIX 4: Respondents Role in Project 177 

APPENDIX 5: Primary Reason for Using PPP Arrangement for implementing the Project 179 

APPENDIX 6. How to Improve the Level of Transparency of PPP Projects 182 

APPENDIX 7. List of Roads Funded by The Government in The Past 20 Years 185 

APPENDIX 9. How to Improve the Current Project Management Techniques in PPP 190 

APPENDIX 10. How to Increase the General Level of Project Performance of PPP in Lagos 

State 193 

APPENDIX 11. Comments 196 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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LIST OF FIGURES        

Figure 1: A Model of Elements of Strategic Management ......................................................... 40 

Figure 2: Research Process ......................................................................................................... 86 

Figure 3: Number of Years in Present Job ................................................................................ 100 

Figure 4: Age Range ................................................................................................................. 100 

Figure 5: Gender Distribution of Respondents.......................................................................... 101 

Figure 6: Level of Education of Respondents ........................................................................... 102 

Figure 7: Have you been Involved in Any Capital Intensive Project Implemented in Lagos State 

that was Solely Executed by the Government ........................................................................... 104 

Figure 8: Have You Been Involved (As a Representative of an Organisation) in Any Project that 

was Implemented through Public-Private Partnership in Lagos State? ..................................... 105 

Figure 9: If yes, what was your Role in the Project .................................................................. 106 

Figure 10: What was the Primary Reason for Using PPP Arrangement for Implementing the 

Project? ...................................................................................................................................... 106 

Figure 11: The General Public (the people) are Actively Involved in Deciding which Project 

will be Implemented under the PPP arrangement ..................................................................... 108 

Figure 12: PPP Projects have Increased the Infrastructural Development of Lagos State ........ 109 

Figure 13: PPP Projects are More Viable Options in the Provision of Social Amenities and 

Infrastructures than Government Funded Projects? .................................................................. 110 

Figure 14: Lagos State Needs Private Participation in the Provision of Public Infrastructure, 

Considering the Level of Internal Generated Revenue and Other Incomes that Lagos State 

Receives?................................................................................................................................... 110 

Figure 15: PPP Projects have Negative Impact on Public Debts?............................................. 112 

Figure 16: PPP Projects have Positive Impacts on Public Debts?............................................. 113 

Figure 17: PPP Projects can Condone Corrupt Practices? ........................................................ 114 

Figure 18: How High is the Level of Transparency in PPP Projects?....................................... 115 

Figure 19: In Your Opinion, What can be Done to Improve the Level of Transparency in PPP 

Projects? .................................................................................................................................... 116 

Figure 20: The Relationship between Transparency, Accountability, Controlled Corruption and 

Governance ............................................................................................................................... 117 



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Figure 21: The Lagos State Government has Effective Governance Mechanism to Ensure 

Effective Implementation of PPP Projects? .............................................................................. 117 

Figure 22: Has there been any Major Road Construction Project Solely Funded by the 

Government of Lagos State in the Past 20 Years? .................................................................... 118 

Figure 23: Kindly State the Ones you Know ............................................................................ 119 

Figure 24: The Regulatory Environment and General Business Atmosphere in Lagos State is 

Favorable for PPP ..................................................................................................................... 119 

Figure 25: The PPP Projects were Effectively Implemented According to Plans..................... 120 

Figure 26: Do you Agree that the Materials Used for the PPP Project Constructions Meet the 

Required Impact Assessment Standard? ................................................................................... 121 

Figure 27: Do you Agree that there is an Effective System Put in Place to Ensure that the 

Project Implementation Process Meet Service Delivery Standard (e.g. health and safety 

standard) .................................................................................................................................... 123 

Figure 28: There is Monitoring and Evaluation Mechanism in Place to Access PPP Project 

Implementation? ........................................................................................................................ 124 

Figure 29. Political Issues are Properly Handled between Government and their Private Partners 

in PPP Projects? ........................................................................................................................ 125 

Figure 30: Private Partners Receive Adequate Support from the Government to Ensure Effective 

Control of Project Implementation? .......................................................................................... 126 

Figure 31: Lack of Effective Control can Lead to Overspending on the PPP Project .............. 127 

Figure 32: Project Management Teams in PPP Projects Manage Resources to Ensure Effective 

Project Implementation ............................................................................................................. 128 

Figure 33: How are the Problems Managed Between Various Stakeholders in PPP Projects? 128 

Figure 34: When is a Project Complete? ................................................................................... 129 

Figure 35: How are the Project Management Teams Communicating with the Projects Field 

Officers? .................................................................................................................................... 130 

Figure 36: Effective Project Management Control Influences the Project’s success ................ 131 

Figure 37: What can be Done to Improve the Current Project Management Technique in PPP?

 ................................................................................................................................................... 132 

Figure 38: There is an Effective System of Maintenance Put in Place to Ensure that the PPP 

Project is Properly Maintained after Completion ...................................................................... 133 



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Figure 39: When you are Measuring Project Performance, What are the Top Three Things that 

you take into Consideration? Multiple options can be selected ................................................ 134 

Figure 40: How would you Rate the Maintenance Schedule of the PPP Projects you Participated 

in? .............................................................................................................................................. 134 

Figure 41: PPP Projects Perform Better Than Public Implemented Projects ............................ 135 

Figure 42: There are Performance Reviews at the End of the Completion of PPP Projects ..... 136 

Figure 43: Which of the Following Elements is the Most Important when you Consider the 

Strength of the Partnership of the PPP Projects? Multiple options can be selected .................. 137 

Figure 44: In your own Opinion, which of the Following Characteristics do you Think can be 

used to justify the Success of a Project? Multiple options can be selected ............................... 138 

Figure 45: Private Partners are Committed to PPP Projects Goals ........................................... 139 

Figure 46: How would you Rate the Value of Money Spent on PPP Projects? ........................ 140 

Figure 47: How would you Rate the Quality of Work/Service of PPP Projects? ..................... 140 

Figure 48: Lagos State Needs Private Participation in the Development of Public Infrastructure 

in Lagos State? .......................................................................................................................... 141 

Figure 49: PPP projects Implemented in Lagos State Need Improvement to Ensure Efficient 

Level of Project Performance .................................................................................................... 141 

Figure 50: What do you Think can be Done to Increase the General Level of Project 

Performance in Lagos State? ..................................................................................................... 142 

Figure 51: PPP Projects Implemented in Lagos State Require Less Foreign Professionals and 

More Local Professionals .......................................................................................................... 142 

Figure 52: Management of PPP Projects should be Independently Overseen by Representatives 

of Line Ministry ........................................................................................................................ 143 

Figure 53: In Public-Private-Partnership, an Impact Assessment Schedule should be Carried out 

by Government Only ................................................................................................................. 143 

Figure 54: The Reporting and Feedback Mechanism in PPP Projects are less Cumbersome 

Compared with Public only Oriented Projects .......................................................................... 144 

Figure 55: The Government should invest in PPP rather than Solely Executing Capital Intensive 

Projects ...................................................................................................................................... 145 

Figure 56: Which of the Following Elements is the most Important when you Consider the 

Benefits of Partnership of the PPP Projects? Multiple options can be selected ........................ 146 

Figure 57: Would you Like to Receive the Final Version of this Research? ............................ 147 



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LIST OF TABLES  

 

Table 1: Lending rate in 10 countries .......................................................................................... 32 

Table 2: Mintzberg's Managerial Roles ...................................................................................... 36 

Table 3: Comparison between Public and Private Organisation ................................................. 59 

Table 4: Particulars of Survey Instruments (See Appendix 4) .................................................... 89 

Table 5: Scaling Types ................................................................................................................ 90 

Table 6: Breakdown of Dimension Three: PPP Project Management in Lagos State, Nigeria .. 91 

Table 7: Names of Organisation (optional) ................................................................................. 98 

Table 8: Breakdown of Position of Respondents ........................................................................ 99 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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UNIVERSITY OF VAASA                                                                                                                        

Faculty of Philosophy                                    

Author:         Adekunle Raimi Raimi-Lawal                

Topic:                      Assessing the Impact of Management Control Mechanism on                    

                                    Project Performance in Public-Private Partnerships:  

                                    Case-study of Lagos State, Nigeria.  

Degree:  Master of Administrative Sciences 

Major Subject:  Public Management           

Supervisor:                Esa Hyyryläinen 

Year of Graduation: 2017                                                         Number of Pages: 198 

 

ABSTRACT 

 

The purpose of this study was to assess the impact that management control mechanism 

has on project performance in projects that were implemented using Public-Private 

Partnerships arrangements in Lagos State, from 2000 - 2016.  

 

Quantitative research method was adopted, and a cross-sectional survey was conducted 

in public and private sector organizations in Lagos to collect the research data. A total 

of 120 questionnaires were given out and 89 respondents returned their questionnaire 

within the given time of data collection.   

 

Research data for the study was gathered from ten public institutions under Lagos State 

Civil service, eleven private construction companies in Lagos, two stakeholders who are 

members of The Nigerian Society of Engineers (Lagos Chapter) and one respondent 

who works with a research institute in Lagos. 

 

Empirical data gathered from the study indicate that the use of management control 

mechanism is positively correlated to project performance of projects implemented 

under Public-Private Partnerships arrangements in Lagos State. Findings further 

substantiate that private sector participants possess a number of management skills and 

expertise, and this they have these capability to ensure effective implementation of 

projects. In-addition, empirical data affirms the importance of the private sector as a 

reliable actor in the provision of public infrastructure.  

 

The study attributes the success of the private sector to the doctrines of new public 

management. This is because, attributes of new public management namely, lesser 

bureaucracy and hierarchy, accountability, transparency, emphasis on output control, 

emphasis on employee and project performance to mention a few, were seen as the 

propelling force of the private sector.  

 

 

 

KEYWORDS: Public-Private Partnership, public organizations, private organizations, 

management practices, public officers, provision of public goods, services and 

infrastructure.  



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1. INTRODUCTION 

 

Public-Private Partnership can be defined as a contractual arrangement between private 

and public sector participants to facilitate the provision of public assets, and 

infrastructures or services, which traditionally would have been provided by the 

government, but is now being provided either solely by private sector or jointly by 

private and public sector (Hurst and Reeves 2004: 380). This research takes interest in 

public-private partnership (PPP) because it attempts to understand the management 

practices that projects implemented under PPP arrangements in Lagos State are based 

on. PPP, in this regard is accredited, to the doctrine of New Public Management (NPM). 

This is because NPM as an academic doctrine talks about joint effort between public 

and private sector participants in the provision of public facilities, goods and services. 

Barzelay states that  “specialists in public administration often focus on how NPM 

relates to budgeting, financial management, civil service and labor relations, 

procurement, organisation and methods, and audit and evaluation” (2001: 3). Thus, 

NPM seeks to ameliorate micro and macroeconomic growth and performance of public 

sector activities, through the use of private sector models and techniques, such as 

performance measurement, strategic management, management control to mention but a 

few.  

In recent times, the numbers of PPP projects that have been executed in a number of 

Nigerian states are enormous. As such, there is a need for enormous forms of public 

assessment, public discussion and critical analyses in order to rationally assess the 

activities of all actors involved in PPP implemented in Nigeria. This is crucial in order 

for the public and the larger society to ascertain the level of compliance to the 

implementation of PPP projects with set management practices and principles. This is 

because management practices and principles are essential and its application to a 

project could be used to determine the level of the project’s success, and suitability and 

also justify the cost implication of the project.  

Moreover, it is believed that there is an urgent need for academics to pay attention to the 

lack of research on management practices of PPP, and the practices of PPP in its 



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entirety. This should be done with a view to understanding what is being done and to 

proffer ways of improvement that will enhance the productivity of PPP projects. 

Expectantly, it is hoped that academics will get the needed political will to actively 

participate in the overhauling process of PPP. Political will, in this regard, is defined by 

Oxford Advance Learners’ Dictionary to mean governments support, desire and 

intention towards a policy. Precisely, the firm commitment on the part of a government 

to implement a cause of action, (in particular, government policy) that can neither be 

instantaneously known nor can it be successfully ascertained, unless it is being 

investigated and findings are backed up by empirical findings.   

Although, discussion on the nature and level of relationship that exist between 

politicians and academics may arise here. This is because public opinion suggests that 

there is the existence of disconnect between academia and governing authorities, who 

are the decision makers, which further extends to industry. Consequently, politicians are 

unable to fully tap into innovative research possibilities that academics have to offer.   

However, there is a need to emphasise that practical solutions to societal problems lies 

in the ability to equivalently combine ideas and innovation from the academia with 

political will. As a result, it is required that academics and politicians endeavour to 

reach a balance or operate at an equilibrium. This is essential to ensure efficient and 

effective communication of ideas, which can facilitate the process of better 

collaboration. Also, a number of scholars ascribe the relationship that exist between 

politicians and academics to struggle for power. And such struggle is detrimental to 

socio-economic development of their respective communities, thus it is of importance 

for academics and politicians to understand that their cooperation is none negotiable. 

In the same view, there is a need for academics, experts and the public to actively 

participate in the discussion on PPP agreement in Nigeria. This is required to ensure that 

PPP arrangements are implemented based on management principles. Similarly, it will 

ensure that adequate measure of checks and balances needed to monitor, assess and 

evaluate projects implemented under PPP arrangement are available and functional.   

 



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1.1. Research Background 

It is generally believed that management practices can be used to facilitate effective 

implementation of projects. As such, this study assesses and examines the 

interconnectivity between management control mechanism and PPP. Accordingly, the 

choice of the research location being Lagos State is due to the high number of projects 

that have been implemented using the PPP arrangements in Lagos. Also, Lagos is seen 

as the economic hub of West Arica and it is largely used as the basis of economic 

assessment of the West African states.  

Furthermore, it is expected that more projects will be implemented under PPP 

agreement in Lagos. As such, there is a need to critically examine how PPP projects are 

being managed in Lagos. The scope of this study will be limited to the centre topic of 

the research. This is to ensure the avoidance of deviation from the point of discussion. 

Also, this research limits comparison between countries because of the societal and 

contextual differences that exist amongst nations, and in order to maintain a bearer’s 

psychic distance, this study will limit its comparison to West African states. This is 

because to a large extent the contextual and societal formation of West African states 

are very similar and they have similar values, cultures and norms which could be 

attributed to shared history and identity amongst the states.  

The need to limit comparison to a bearer minimal is because, to a large extent, the 

dynamics of societal problems are a function of contextual and societal formation of 

respective societies. As such, what might be morally acceptable in one society might not 

be close to being acceptable in another society.  For example, in societies termed as 

“western societies”, the use of mountains is associated with mountaineering why in 

some African and Latin American countries (Nigeria and Brazil for example,), the use 

of mountains is associated with spiritual\religious activities like praying. Thus, this 

research acknowledges the differences that exist amongst nations, which is why the 

comparison between countries is done at the barest minimum.  

It is noteworthy to state that examples used in this study should not be used to adjudge 

(either in positive or negative terms) the societies that they occurred in. As the purpose 

of using these examples was simply to further substantiate the views that they were used 



                      14 

 

along with. This is because the examples do not depict a holistic representation of the 

society that they occurred.  

Although, a number of writers have written about PPP, but there is little or no effort to 

integrate literature on management principles and practices into PPP arrangements. This 

study is therefore needed to make available a holistic assessment of PPPs in the 

Nigerian public domain. As such, this research seeks to fill this academic lacuna.  

According to research findings made available by RICSRESEARCH Report of 2011, it 

has been indicated that over forty (40) countries across the globe have applied the PPP 

arrangement to facilitate provision of various infrastructural facilities  

“it was revealed that lack of capacity and policy direction, inconsistence in 

policy, mistrust among government implementing agencies, policy bias against 

PPP, high participation costs, low technology, socio-cultural and macro-

economic issues, delay in negotiation, and poor performance are among the 

challenges identified as being affecting the smooth management and 

implementation of the PPP projects in sub-Saharan Africa.” (Sanni and Hashim 

2014: 134.) 

Furthermore, in order to provide readers with a clear understanding and an all-inclusive 

view of issues that surround the research topic, the researcher constructed a structure 

that viewed the bone of contention from a wide-ranging perspective. As such, topics 

like organisational culture, principles of management and management practices, 

comparative analyses of public and private organisations, public-private partnership 

were extensively discussed in the chapter two of this study. This was done based on the 

standpoint that there is a need to comprehensively discuss these topics, because they 

have the propensity to give readers a wider understanding of the research topic. 

This research is of the view that this may the beneficiaries of this research an 

opportunity to further expand their knowledge on issues that could impact or play 

pivotal roles in the formation, implementation, evaluation and monitoring of projects 

executed under the PPP arrangement. This research is also of the view that audience of 

this research, who take interest in the various topics discussed in chapter two of this 

study, should be presented with detailed information in order for them to have a better 



                      15 

 

understanding of the topics, areas and discussion associated with the research topic. It is 

also aimed at easily enlightening a lay man in this field of study.  

This research is essential because it affords readers the opportunity to identify if truly 

PPP brings about Value for Money (VFM). This is stated bearing in mind that the 

nucleus of effective implementation of projects (either public or private) relies on the 

implementer’s ability to adhere to management principles. Conceivably, effective 

implementation of projects can be associated with the existence of effective internal 

management as stated by Rainey (2014:8). This is essential because it helps ensure that 

projects are implemented based on appropriate process cycle. This could also ensure 

that adequate checks and balances are available and functional to effectively facilitate 

the sustainability of the public projects. This can further be used to ensure that 

investments yield appropriate financial returns (Rainey 2014:8). 

On the other hand, in organising the process of private sector participants, the associated 

risks and benefits must be equitably distributed amongst the participants from the two 

sectors (public and private sectors). However, if the political contexts of a number of 

African countries are factored in, it could be stated that the process of mitigating risks 

and benefits could lead to disputations. This is as a result of the state of their respective 

democratic institutions, which is seen as weak and still evolving (Asian Development 

Bank 2012:63). 

For example, the existence of ineffective public procurement of land for infrastructural 

projects and facilities can create obstacles that would limit or discredit the human and 

financial resources, as well as the expertise provided towards the project. As such, it 

would also limit the success of the PPP (Asian Development Bank 2012:63). 

Correspondingly, PPPs comprises or entails a large number of inherent and associated 

risks, including inflation and uncertainty of future exchange rates, which to a large 

extent has effects on the project cost. And in situations where these variables continue 

to fluctuate, it will result in negative economic implications, which may further affect 

the economic viability, suitability and durability of the project (Asian Development 

Bank 2012:63). 



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To this end, in order for the PPPs to be successful and productive in the long term, and 

for it to play a significant role in facilitating the process of attaining a country’s 

infrastructural needs, governments in particular, are required to be more responsible, 

accountable, and transparent and must play key roles in ensuring that the adequate 

regulator needed to enforce health, safety and technical service standards are in place 

and met. Also, government and its institutions, agencies, ministries, civil servants, 

private sector participants and all stakeholders involved must work together to create an 

atmosphere of good governance and best practices (Asian Development Bank 2012).  

 

1.2. Research Hypothesis                                                                                                     

In view of the present state of affairs of Nigerian society which is stated to be highly 

saturated with corrupt practices, most especially, within the activities of the public 

sector is seen as ineffective, because its capability and expertise is being limited by 

these corrupt practices. Likewise, reports indicate that a number of government officials 

are corrupt (See Aziken Emmanuel 2006. Looting: EFCC Report Indicts 15 Governors). 

The above report creates reservations that governors can only carry out corrupt practices 

if the civil servants allow such activities to thrive within their respective domains. This 

is because, the process and channel of carrying out corrupt practices entails at least one 

civil service ministry, government agency or parastatal.  

In addition, to this, recently, the Nigerian government carried out an audit on thirty 

three (33) government agencies and “uncover four hundred and fifty billion naira 

(N450, 000.000.000) unremitted revenue”. Conceivably, it may be right to agree that the 

corruption being perpetrated in Nigeria is “quantum corruption”. Interestingly, the 

reports further indicate that some of the agencies have started to return various amount, 

For example, the Nigeria Shippers Council was stated to have returned six hundred and 

forty million naira (N640,000,000) (Saharaporters 2016).  

Consequently, one would be forced to wonder if PPP is not a new dimension to carrying 

out corrupt practices. The reason is because PPP arrangements originate from 

agreements reached with minute public scrutiny and participation. Also, questions arise 



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has to why members of the public are not allowed to choose the specific projects that 

should be implemented under PPP arrangements. Similarly, in most cases, the general 

public doesn’t know which project is implemented under PPP arrangement; let alone 

understanding the specific details that respective PPP agreements entails. Despondently, 

the general public bears the burden of the public debts accrued from PPP projects.  

Hence, this study hypothesises that the implementation of PPP arrangements in Lagos 

State, has reenergised the spirit of public sector as it has paved way for management 

principles and practices that facilitate effective provision of public infrastructure. In 

order to maintain focus of this study, issues of corruption in Nigeria will not be 

extensively discussed. Interested readers should refer to (Osifo 2009, Osifo 2012 and 

Muhammed 2014). Although, discussions about corruption are associated with the 

provision of public goods and services, but it is not the area of focus of this research. As 

such, it will not be discussed to avoid deviation from the topic been researched on.  

 

1.3. Research Questions 

The purpose of this study is to critically assess the management control mechanism that 

PPP arrangements in Lagos State are being implemented upon. The following questions 

are addressed in this thesis research.  

1.3.1. Main Research Question  

 How are PPP projects managed in Lagos State?  

1.3.2. Sub-Questions of the Study 

 

a)  How is the level of application of management control mechanism to PPP     

     arrangements implemented in Lagos State, Nigeria from 2000 – 2016? 

b) What is the impact rate of elements of management control on the performance of     

     projects implemented under PPP arrangement in Lagos State, Nigeria from 2000 –     

     2016? 

 



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1.4. Scope of Study 

As stated above, this study is basically aimed at assessing the impact of management 

control mechanism on project performance in which PPP projects were implemented 

upon in Lagos. The area of concentration of this study is the transportation industry. 

The transportation aspect was chosen because it is the sector with the largest amount of 

private investment in Lagos. Also, a number of PPP projects implemented in the 

transportation sector of Lagos State have generated a number of public discussions.   

Firstly, this study presents a comprehensive understanding of the principles of 

management and management practices. To achieve this, this study entails detailed 

discussion on management as a whole. This comprises of what management is, and how 

it is being implemented. Significantly, an extensive theoretical analysis of public and 

private sector organisations is being presented in this study. This further takes a look at 

the management of public and private organisations and well as the ethos. The ethos is 

expressed in relation to public service and business.              

Secondly, PPP is expansively discussed and this discussion evolves round the critical 

analyses of PPP. And it also takes a look at PPPs as a combination of management 

practices of public and private organisations. In conclusion, critical analysis of the 

findings of this study is conducted and the key research findings, a few 

recommendations and future research areas are proposed.  

1.4.1. Research Statement  

It is commonly shared that dialogues in the global business world tend to place 

immense emphasis on the significance of good management (CentrePiece Summer 

2005: 1). And, good management in this regard has been attributed to one of the core 

potentials of the private sector, which has facilitated the success of a number of private 

sector activities. Basically, good management can be accredited to having in place good 

management strategies. This is fashioned to steer the conduct of employees and the 

process through which organisational operations are being formulated, implemented, 

evaluated and rewarded. As such, it entails what good management strategies should 



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compose of which is usually aimed at attaining a unitary standpoint of “consistence and 

consensus throughout the organisation” (Lawton, Rayner and Lasthuisen 2013: 75). 

However, the in availability of adequate empirical data on management practices has 

hindered management experts, economists and public analysts in being able to clarify 

the importance of management to organisation productivity, success and other major 

performance pointers (CentrePiece Summer 2005: 1). An effort to fill the vacuum was 

set by some consultants at McKinsey. This was done through the use of a ground-

breaking assessment methodology:   

“to measure management practices in more than 730 manufacturing firms in 

France, Germany, the UK and the United States. By matching these data with 

information from firm accounts, they are able to explore in detail the relationship 

between management practices, the economic environment and the company’s 

performance.” (CentrePiece Summer 2005: 1.) 

The outcome of the study indicates that good management practice is suggestively 

connected with greater outputs, and other major performance pointers. For example, 

good management practices have positive impact on the “return on capital employed, 

sales per employee, sales growth and growth in market share” (CentrePiece Summer 

2005: 1). This indicates that, management practices are positively related to the success 

of any organisation. Thus, in order to assess the success of PPP in Nigeria, it is essential 

to assess the management practices that PPP arrangements in Nigeria are based upon 

and are implemented by, which is what this research is focused on.  

Also, the notion of the recent reforms being practiced by the Nigerian government, 

could be said to fit the doctrine of new public management. This is because it entails 

active participation of private sectors in the production of public goods, services and 

infrastructures. In this regard, public management could be defined as a doctrine that 

infuses principles, practices and applications of the private sector, into the affairs and 

operations of the public sector. It can also be defined as an approach that makes use of 

management practices and principles, which in most cases, are derived from private 

sector organisations. This is used to enhance service delivery and make sure that the 

financial value used to finance public goods and services is maximised (Bovaird and 

Löffler 2009: 6).  



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Although, debate on distinction between public and private organisations have been 

limited due to the similarity in their organisation characteristics just as, Rainey 

(2014:56) argues based on experimental procedures of organisational characteristics. 

This led him to conclude that there are petite empirical facts to substantiate the 

existence of an austere division between public and private establishments.  

However, the fundamental point of view of the two entities (public and private) is based 

on distinct perspectives. The former is of the view which seeks to provide public 

facilities and services in ensuring that the general well-being of the people is protected 

and guaranteed. In this regard, public and national interest is the sole aim of public 

organisations. The perspective of the latter is that of profit making. Thus, financial 

returns are expected on the capital invested in the provision of public infrastructures. In 

other words, the capital invested in the provision of public infrastructures is to be 

maximised for financial returns.  

The fusion of these two perspectives requires a need to understand the management 

practices of the new entity (PPP). This is due to the fact that two distinct entities have 

been fused to achieve a specific goal. Sequel to this, there is a need to understand how 

both entities are able to achieve their organisational purpose, considering that they are 

founded upon different organisational perspectives.  

Nonetheless, the emergence of PPP has been attributed to poor performance of the 

public sector. And a number of scholars share the opinion that the public sector has lost 

its competitive advantage to the private sector. Also, some scholars are of the opinion 

that the public sector is no longer competent to deliver public goods and services, 

hence, a new model that will ensure effective service delivery. This necessitated the 

need for the PPP.  

Perhaps, Llanto may be right to have noted that “public-private partnership can play a 

significant role in infrastructure development” of nations (2008a: 321). Interestingly, a 

number of reports indicate that a number of countries in East Asia still have their public 

infrastructure being provided by their respective government, often regarded as public 

sector participants (Llanto 2008a: 323). And that these services and facilities are 



                      21 

 

effective and sufficient. As such, one would wonder if PPP is actually needed to ensure 

effective delivery of public infrastructures.  

It is thought-provoking that rather than the government addressing the problem of poor 

performance in the public sector, it seeks an alternative. The problem, in most cases is 

linked to corrupt and unethical practices, and one would be forced to ask why the 

government is not able to address and solve the problem? This is indeed a complex 

debate, because it entails how corrupt and unethical practices are defined as the broad. 

For example, corruption is attributed to a bribe but not to lobbying, and one may ask 

why? Also, one would wonder why the idea of tax haven is not seen as a corrupt 

practice. Rather, the use of tax haven is generally regarded as immorally or unethically 

but it is not seen as outright corrupt practice. Thus, the stance of this study is that the 

term corruption should have a definition that takes into consideration the practice of 

lobbying and the use of tax haven. 

In addition, unethical practices entails notions that may probably be culturally 

acceptable which may and may not be in adherence to management principles and 

practices. Be that as it may, the government still has to be held responsible for the 

problem of poor performance in the public sectors and its motive for seeking an 

alternative, rather than addressing the problem, and aiming at providing a temporary or 

permanent solution.  

A number of public analysts are unable to comprehend the inability of government to 

resolve the problem of corrupt and unethical practices that has undermine the 

productivity and the operational efficiency and effectiveness of the public sectors. This 

is due to the assumption that powers (political, legal and institutional powers) needed to 

address socio-economic challenges and disparities that citizens, communities and the 

society at large encounter, resides in the hands of respective governments.   

Conceivably, one may conclude that the inability of government to curb corrupt and 

unethical practices in the public sector is due to the lack of government’s willpower and 

desire. This is due to the fact that government’s willpower is instrumental to ensuring a 

corrupt free society. Although, it is hard to state whether there is a corrupt free society 



                      22 

 

anywhere. Perhaps it will be good to rephrase the sentence ‘corrupt free society’ as ‘a 

society where corruption is minimal’. 

Probably, a good reason why it has been hard to fight corruption and create a positive 

ethical climate in the public sector may be attributed to the words of Rainey (2014) 

which has to do with the pitiable state of recruitment process that occurs in the public 

sector. This happens when public officials use their position and authority to recruit 

“trusted associates into key positions”. As such they establish strong network that can 

be used to cover their tracks and perpetrate fraudulent and unprincipled practices. As a 

result, the loyalties of some of these associates are to the public officials who got them 

the job rather than to the job and the state. The existence of such practices continues to 

pollute the ethical climate of public organisations.  

In addition, the employment procedures of such associates are not based on fairness and 

merit and it does not represent the capability and competences of the associates. As such 

the associates have an interest to protect and makes their loyalty and objectivity 

questionable. This is very much evident in Nigeria. For more information see Appendix 

1: Recruitment Scandals in Nigeria’s Public Service Sector.  

Possibly, Davidson (2004: 15) may be right to have stated that “PPP policies have 

nothing to do with economics and everything to do with powerful vested interest that 

are happy to hide behind the complexity of the issue to enrich themselves.” This makes 

a lot of sense when Nigeria is brought into context. This is because PPP arrangements 

are not subject to public scrutiny. Also, the procedures which PPP go through are not 

fully transparent and there is little or no public accountability on PPP arrangements. 

Similarly, there is a need to ask, who decides which project should be funded by PPP? 

And what role the citizens play in the implementation, assessment and evaluation of 

projects funded by the PPP agreements?  

Furthermore, when the identity of a number of owners of companies that participate in 

PPP arrangement with the government is factored in, questions would arise as regards 

conflicts of interest and unethical practices, and this could be attributed to corrupt 

practices. For example, the owner of Bi-Courtney Limited, (whose company executed 



                      23 

 

the construction of the domestic terminal of the Murtala Muhammed International 

Airport (MMA2), which is a project under PPP agreement could be seen as a political 

lobbyist. Similarly, questions need to be asked if public officials in Nigeria ever declare 

conflicts of interest as it relates to their jobs and associations with companies that 

implement public funded projects.  

Remarkably, there is no empirical analysis to prove that there is no corruption in the 

private sector. There is no evidence that can be used to categorically state that PPP 

arrangement is not the new frontier making it hard to trace corrupt practices. Also if 

PPP arrangement is viewed from the perspective of transaction-cost theory has 

discussed by Rainey (2014: 96), a series of unanswered questions will begin to emerge.    

Conversely, a number of scholars’ have emphasised that PPP is beneficial to both the 

public and private sector. This was stated because the public is able to access 

infrastructural developments which the government may possibly not be able to afford 

when needed or which the government did not pay for when provided. Also, the private 

sector is also able to make profit on its investment. Hence, both parties are able to meet 

their organisational objectives (Hodge and Greve 2005: 4). 

Similarly, it is shared that the combination of the strengths and merits of public and 

private sector would bring about an outcome that would outshine the qualities of either 

public sector or private sector (Hodge and Greve 2005: 4 cited in Vaillancort Rosenau 

1999: 1). A reason for this is that the fusion creates an avenue to identify the best 

practices and expertise of both sectors. And their union brings about the ‘best practice’, 

which is believed to be the answer to problems of service delivery in the provision of 

public goods, services, infrastructures and assets.  

Alternatively, PPP brings to light the association that exist between public and private 

sector participants which is widely acknowledged because it has promoted the 

acceptance of management principles and practices held by the private sector (Pollitt 

and Bouckaert 2000; Maesschalck, Van der Wal and Hurberts 2008 cited in Lawton, 

Rayner and Lasthuisen 2013: 58). And this has led some scholars to refer to the 

association between public and private sector as “antithetical to a commitment of public 



                      24 

 

interest” (Hebson et al 2003 as cited in Lawton, Rayner and Lasthuisen 2013: 58). This 

is due to the complicating purpose that both organisations are instituted upon. For 

example, the public sector is founded to serve and safeguard the interest of the general 

public, while the private sector is established to maximise profit from the general 

public. In this regard, one may begin to wonder how such entities are able to function 

together and still achieve their organisational objectives.  

Arguably, the above stated points may be essential because there is apparent evidence 

that private sector participation, which in this regard is associated with NPM reforms 

have influenced public service philosophy, approach and motivation. This is evident in 

the existence of an accountability and audit culture in public sector. Such occurrences 

could be said to have awakened “interest in public service ethos and to attempts to 

sharpen its focus in responding to such reforms” (Needham 2006 as cited in Lawton, 

Rayner and Lasthuisen 2013: 58).  

In reference to Li et al (2001), it is believed that the general aim of PPP is to ensure 

adequate VFM for taxpayer. Thus, while ensuring that taxes are justifiably spent, it also 

ensures that the private sector gets profit for its investments (Sanni and Hashim 2014: 

134). In this regard, PPP serves a dual purpose. To this end, the researcher shares the 

view that the focus of this research stems into a complex discussion which requires 

some form of caution to ensure objectivity and also further research on PPP in Nigeria 

and African countries. 

 

1.5. Limitations to the Study  

A number of limitations are connected to this study. This research was conducted in 

Nigeria but the research project is associated with the researchers Masters study in 

Finland. Hence, the response that the researcher envisaged from respondents at the 

outset of the research was not achieved. In respect of this, the researcher had to adjust to 

what was attainable. The researcher had expected that responders will be willing to fill 

the questionnaire online, as expected of the internet age. But, a large number of 



                      25 

 

respondents requested for paper questionnaire. Thus, the mode of data collection had to 

be changed from electronic questionnaire to the use of print questionnaire.  

In addition, the researcher had expected that responders would be willing to fill the 

questionnaire, since the research topic had to do with service improvement. The 

researcher was, however, astonished by the difficulties encountered in getting people to 

fill the questionnaire. This had to do with several work place bottlenecks, work culture 

and work ethics. Also, getting respondents to believe and understand that this was just 

an academic research with no undertone, was a difficult task. To overcome this 

challenges, the researcher had to reliable on contact persons with various ministries, 

agencies and parastatals’ of Lagos State government, to get respondents to fill the 

questionnaire.  

Similarly, the researcher had expected that the numbers of respondent’s rate from the 

private sector will be high. But this turned out to be false, because a number of the 

respondents (employers of Private companies) who filled the questionnaire of this study 

did it in individual capacity and not as representatives of their respective organisations. 

This was because, they had to seek approval to fill the questionnaire in the 

organisation’s capacity. And a number of them were concerned that if their 

organisations were not satisfied with the findings of this study, they may be penalized 

later.  

 

1.6. Structure of the Study 

The study is structured into five chapters.  

Chapter one entails a brief discussion about the introduction and background to the 

study. This was carried out with the use of diminutive narration into the content of the 

study. Essentially, this chapter contains the research questions, the scope and limitations 

to the study. As well as the structure of this study.  

Chapter two of this study is devoted to critically analysing the various topics that are 

associated with the focus of the study. It also includes a discussion of the principles of 



                      26 

 

management and management practices and an extensive theoretical analysis of public 

and private sector organisations. The chapter further takes a look into the management 

of public and private organisations and public service and business ethos. Furthermore, 

an expansive discussion and critical analysis of PPP was stated, taking a look at PPPs as 

a combination of management practices of public and private organisations.  

Chapter three presents the research methodology of the study. It explains research 

methodology, research process and approach. The chapter further elaborates the 

research instrument used in the current study, the data analysis, the survey respondents, 

the research setting, the ethical considerations and a discussion of its validity and 

reliability.  

Chapter four is devoted to data analysis. This chapter is primarily divided into four 

sections: (i) The first dimension gives the profile of respondents (ii) The second 

dimension provides informationon the respondents’ past work experience (iii) The third 

dimension expantiates on the PPP project management In Lagos State, Nigeria. This 

section discusses the findings of the research questions. (iv) The fourth dimension is 

provided room for comments from respondents. Chapter five (5) is dedicated to the 

conclusion, a few recommendation and future research areas for interested researcher. 

 

 

 

 

 

 

 

 



                      27 

 

2. MANAGEMENT OF PUBLIC-PRIVATE PARTNERSHIP                                      

 

Federal, state, municipal, regional, provincial and local governments across the globe, 

in particular, in European countries have progressively used private sector finance to 

facilitate the development, provision, and funding of public services, infrastructures and 

assets. And it has also been used to expedite service delivery of these provisions. The 

motives for this endorsement are multifarious; ranging from increasing limitations on 

government budgets to the continuous incensement of public expenditure needed to 

maintain, renovate and operate public assets as well as the persistent desire of 

governments to seek for innovative methods and procedures from private sector 

expertise. This is done with the aim of facilitating a more effective risk allocation 

technique that is associated with the provision and maintenance of public services, 

infrastructures and assets (Roehrich, Lewis and George 2014: 110).  

It is believed that the main reason why governments of various countries place 

importance on the provision of public goods, services and infrastructure is due to the 

generally conceived notion that an upsurge in the creation of public infrastructural 

facilities and services will guarantee the enhancement of socio-economic activities of 

communities and the society at large. This is due to the fact that public infrastructural 

facilities and services have a positive correlation to the social and economic 

development of any nation. There is also a shared notion that the existence of adequate 

and effective public infrastructural facilities and services would bring about an increase 

in the standard of living of people who reside within the specific geographical territory 

(Sanni and Hashim 2014: 133). 

Although, the prime difficulty which continues to pose limitation to the provision of 

public infrastructural facilities and services in Nigeria has been identified as the 

inadequacy of financial capability needed to expedite and facilitate effective provision 

of public infrastructures. Also, there exist a huge public infrastructural deficit. As such 

an alternative source of funding is required and in this regard private sector financing is 

seen to be the last resort (Salami 2016). 



                      28 

 

 

In the same vein, it has been publicly stated that the availability of effective and 

efficient infrastructural facilities and services can help to enhance the manufacturing 

and agricultural sector. Likewise, these resources have positive impacts on other 

completing sectors like the energy sector, the housing sector, transport sector and 

industries, given that, their collective efforts could help enhance the socio-economic 

well-being of the populace and further reduce the level of poverty in the society. 

Correspondingly, advancement in information and telecommunication industry has 

helped to promote growth and economic development and it has also helped to improve 

the service delivery of health services and other essential services, which has in turn 

ensured the welfare of the total populace (The World Bank 2015a). But, these 

developments have also been hindered by lack of adequate funding.  

A number of scholars are of the opinion that if developing and African countries are to 

expand and effectively maintain the required and available public infrastructure they 

would have to invest an estimate of “USD 600billion which represented 7 percent of 

their GDP” (Sanni and Hashim 2014: 133 cited in Kateja 2012). It is estimated that the 

cost required to provide the needed infrastructural services and facilities that will 

accelerate social and economic development of developing and African countries 

represents about three (3) percent of their GDP and only about four (4) percent of their 

GDP is required to effectively maintain and upgrade the existing public infrastructure 

(Sanni and Hashim 2014: 133 cited in Kateja 2012).  

Also, Salami (2016) stated that “over thirty years Nigeria is going to invest Three 

trillion dollars to upgrade and expand infrastructures. This equates to an average annual 

budget spending of an hundred billion dollars bearing in mind that the total annual 

budgetary allocation of all three arms of government in Nigeria does not in any way 

come close to the estimated amount. (Salami 2016). This then brings us to the reality of 

the eminent need for private sector involvement in the financing and provision of public 

infrastructures in Nigeria.  

 



                      29 

 

In the same vein, records indicate that the population of Africa is estimated to constitute 

about 10 percent of the population of people across the globe. Despondently, Africa 

receives just 2 percent “of the world’s direct private investment” (Sanni and Hashim 

2014: 134 cited in Afdev, 2013). Indeed, there is an urgent need to increase the amount 

of private sector investment in Sub-Saharan Africa, in particular, direct investment on 

infrastructural facilities needs to be increased. This is important because it will enable 

communities and societies to benefit from the multiplier effects that arrive when 

infrastructural facilities and assets are available and effective bearing in mind that the 

positive and economic impacts that the availability of public infrastructural facilities 

and assets has on the overall performance of the economy is enormous (Sanni and 

Hashim 2014: 134).  

Consequently, the above statement indicates that developing countries, most especially, 

sub-Saharan African countries are required to increase their respective budget allocation 

on public infrastructure. This is required because it will further enhance social and 

economic development, and also facilitate the process of rural-urban development 

(Sanni and Hashim 2014: 133). Matters become complex when the population of sub-

Saharan Africa and its demographic analysis is brought into context. This is because 

such a huge and fast-growing population requires modern and effective infrastructures 

to engage in their respective day-to-day activities. However, such is not readily 

available; rather it is merely hope for. This is quite alarming because the non-

availability of modern and effective infrastructural facilities and services habitually 

limits social and economic development and it also has a negative implication on the 

welfare and general standard of living of the people.  

This can be substantiated with the figures estimated by the World Bank in 2013 

(2015b), which states that the population of sub-Saharan Africa was 936.3 million with 

an annual growth rate of 2.7 percent. Also stated the population is expected to “increase 

to 2.5 billion in 2050”, considering that in 2012, “the Gross National Product (GNP) per 

capita of sub-Saharan Africa was in the average of USD 1,540, while the average per 

capita in OECD countries was USD 33,470 and the Lower Middle Income countries’ 

per capita was USD 1,816.” (Sanni and Hashim 2014: 133 cited in Afmeasur, 2013 and 

Kateja, 2012). Peradventure, it is impossible to agree that the welfare of people in sub-



                      30 

 

Saharan Africa countries can be guaranteed, given the low corresponding rate of their 

low per capita income to their respective population.  

The above stated analysis indicates that sub-Saharan African countries have low per 

capita income, which tends to be below countries in the Lower Middle Income index. 

Also, it is estimated that about half of the countries in sub-Saharan Africa are amongst 

the forty poorest nations in the world (Sanni and Hashim 2014: 134 cited in Afdev, 

2013), in spite of the fact that about 37 percent of the populace reside in the 

metropolitan communities (Sanni and Hashim 2014: 134 cited in TE, 2013, Afmeasur, 

2013).  

Interesting, the issue of low electricity supply in African countries has generated 

debates and from the looks of things, a number of private sector participants have 

started to show interest the power sector. It is hoped that either PPP or full private sector 

engagement will ensure effective delivery of power in African countries. In view of the 

fact that power generation in Nigeria is generally characterised by inadequacy, non-

availability and unreliability (Nigerian Electricity Regulatory Commission 2015), 

questions into why the Nigerian government has not tapped into waste to energy 

production opportunities continue to generate further discourse. This is due to the 

existence of abundant supply of medical, marine, electronics, organic and municipal 

solid waste.  For example, “Lagos produces an estimate of 9,000 tons of municipal solid 

waste and electronic waste per day” (Bloomberg 2015). Perhaps, one may conclude that 

the government still has not got it right. 

Interestingly, it is stated that regardless of the global economic backdrop which was 

caused by global recession, the economic state of a number of countries in Sub-Saharan 

Africa is vibrant and their economy grows on a progressive pace. For example, for the 

financial year 2012-13, economic growth in Sub-Saharan Africa “was projected at 5.25 

(percent growth) rate per year” (Sanni and Hashim 2014: 134 cited in IMF, 2012).  It is 

also stated that in order to seek redress to the socio-economic and infrastructural 

challenges that sub-Saharan Africa is faced with, a number of governments of sub-

Saharan Africa countries have identified PPP as a way forward and a game changer 

(Sanni and Hashim 2014: 134 cited in Li and Akintoye, 2003). This is justifiable 



                      31 

 

because the provision of infrastructural services by governments, specifically in the 

developing countries, has been very challenging.  

Although, these challenges have been attributed to non-availability of financial 

resources, some scholars are of the standpoint that misappropriation of funds and 

corruption are largely to blame. This is why a number of scholars opinionate that PPP 

may not be as successful as it should be. And it may not address the infrastructural 

deficit in Africa if the issue of misappropriation of funds and corruption in the public 

sector of African countries is not holistically addressed (Sanni and Hashim 2014: 135). 

When the national wealth of African countries is brought into context, in particular, 

countries that have abundant natural resources, it may be right to agree that indeed 

misappropriation and corruption, which hindered government performance, gave way 

for public-private partnership. But then, scholastic opinion states that the need for 

infrastructure improvements is positively correlated to increase in the overall cost of 

capital expenditure (Solana 2014: 262).  

Since the government of every nation is commonly seen as the lender of last resort and 

the main creator of funds in every society, it therefore becomes hard to understand why 

private funds are needed to facilitate the design and implementation of public 

infrastructures. This is because, when private firms fail or go bankrupt, the government 

is called upon to bail them out. For example, it is publicly known that during the 

economic meltdown of 2008 government had to bail-out banks and large corporations. 

Hence, one would wonder if private funds are truly needed in the provision of public 

infrastructures.  

Perhaps, those who stated that developing countries are habitually incompetent of 

ameliorating macroeconomic conditions do have a vital point. This has also made the 

return on capital to be higher in comparison with what is obtainable in developed 

countries. Thus, private sector participants generally anticipate higher financial returns 

while investing in developing countries, hence, the cost of having private enterprise 

finance, operate and maintain a PPP agreement throughout the viability of a project will 

decrease the project’s value for money (Solana 2014: 262).  



                      32 

 

Also, studies have shown that Nigeria has a huge public infrastructure deficit and that 

the government is incapable of providing the financial, human and technological 

resources needed to meet the infrastructural demands of that the country is faced with. 

In order to meet this demand, funding from private sector is required (Salami 2016). 

Though, this system allows the government to meet up with its responsibility, but then 

questions regarding the cost implication of projects executed under PPP arrangements 

remain unanswered. The grouse here is how possible will it be for private entity, whose 

sole aim is to maximise profit, to collaborate with a public sector, whose aim is to 

protect public interest, in the provision of public services (Solana 2014: 262). As such, 

one may wonder who gets the order of the day and how public interest is been attained 

and protected. 

Similarly, in some African countries, the expected return on capital by shareholders of 

the private entity is usually high (Solana 2014: 262). This is because the interest lending 

rate obtainable in African countries when compared with what is obtainable in Western 

societies is considerable high. This directly equates that the cost of production of 

projects implemented under the PPP arrangements in African countries will be high. 

Then, the question that arises will be, would it be better not to have an infrastructure or 

to have it and then pay dearly for it?  

Table 1: Lending rate in 10 countries 

COUNTRIES 

 

LENDING INTEREST RATE 

      2000                        2012 

United Kingdom 6.0% 0.5% 

United States 9.2% 1.4% 

Mexico 16.9% 4.7% 

China 5.9% 6.0% 

Japan 2.1% 1.4% 

India 12.3% 10.6% 

South Africa 14.5% 8.8% 

Nigeria 21.3% 16.8% 

Kenya 22.3% 19.7% 

Uganda 22.9% 26.3% 

Source: (Solana 2014: 261).  



                      33 

 

2.1. Principles of Management and Management Practices   

The dynamics of the world and the workforce environment seems to be an ever 

changing one. This can be substantiated by the shift that has occurred in the field of 

management, which has paved way for concerns like; the eminent need for 

managers\leaders to understand human behaviour, the conspicuous need for 

managers\leaders to possess people skills and effective communication skills, as 

compared to the era when management was all about “economics, accounting finance 

and quantitative techniques” (Robbins and Judge 2015: 37).  

This could further be corroborated by a recent study that stipulates that organisations 

whose employees and employers enjoy a high level of social relationship experience an 

overall job satisfaction and lesser stress at work. They also have a lesser propensity to 

quit and therefore, the organisation’s efficiency (which is positively related to 

organisational output) is enhanced and in most cases is maximised (Robbins and Judge 

2015: 37). 

This further leads to the imperative role that human resource management plays in 

ensuring the success of every organisation. This has obliged managers to look beyond 

their practical skills and as such make every effort to build good interpersonal and 

communications skills with their employees if they want to make the best out of their 

workers in their contemporary workplace. This further leads to questions; like who is a 

manager, what are the roles of managers/leaders, how is the workplace process been 

managed? And what is the importance of a manager\leader in relation to organisational 

success.  

Basically, a manager is that person whose responsibility is to ensure that organisational 

goals are achieve. This the manager does by ensuring effective utilisation of all 

organisational resources. This entails putting in place effective process mechanism in 

which organisational task will be carried out. For example, the manager\leader ensures 

that decisions to be made will bring about best outcomes. Also, the manager\leader 

ensures that all organisational resources (human, financial resources and otherwise) are 

accurately allocated and adequately utilised (Robbins and Judge 2015: 38). 



                      34 

 

In addition, the manager makes sure that all organisational operations are geared 

towards attaining the laid down goals and that such activity are carried out in 

accordance with the rules and regulations of the organisation. Furthermore, the manager 

is obligated to have in place reliable monitoring and evaluation mechanisms. To this 

end, the manager is obliged to ensure that the reward for hard work is always attained 

(Robbins and Judge 2015: 38).  

Alternatively, a manager is the person who is seen as the symbolic representation of 

organisational leadership. As such, the day-to-day activities of such an organisation is 

guided by the leadership styles and principles that are being demonstrated by the 

manager. Above all, employees carry out their organisational tasks in relations to the 

capability of the managers to manage the process and make the best out of them (the 

employees).  

Correspondingly, leadership is being said to be reliant on followership. A leader is 

required to be able to ensure effective followership, which is largely dependent of the 

leadership style and principles adopted. This brings us back to the vital role of managers 

(leaders) who are required to understand human behaviour, possess people management 

skills and effective communication skills. All these are needed to guarantee effective 

followership. This could also be put in place when managers/leaders makes sure that 

they “create ethically healthy climate” that would facilitate the creation of a healthy 

workplace, and further increase organisational productivity (Robbins and Judge 2015: 

57).  

It is important to note that the task of a managers is not limited to one particular sector. 

Managers operate in both private and public organisations, which in this regard may be 

defined as functioning in a “consciously coordinated social units, composed of two or 

more people, that function on a relatively continuous basis to achieve a common goal or 

set of goals” (Robbins and Judge 2015: 38). And in cases where an organisation 

operates across the globe, managers are required to ensure that the management 

practices put in place by their respective organisations puts into consideration, the 

contextual composition of the society that they operate in. As a result respective 

organisations strive to ensure that “management practices need to be modified to reflect 



                      35 

 

the values of the different countries in which an organisation operates” (Robbins and 

Judge 2015: 51).  

This does not mean that managers have to compromise standard, rather managers are 

required to uphold such standards and ensure that the management practices of their 

organisation have some form of societal relevance and compliance to the society where 

they operate. This is essential and should be emphasised because a large number of PPP 

arrangements are carried out by various kinds of organisations. Examples are the 

multinational and transnational organisations and multinational corporations.  

The discussions stated above further bring to light the functions, roles and skills of 

management which is essential to organisational success.  Management function in its 

regards, can be found in the works of Henri Fayol, where he stated “that all managers 

perform five management functions (namely); planning organising, commanding, 

coordinating and controlling (which has been compacted) to four (namely); planning, 

organising, leading and controlling” (Robbins and Judge 2015: 38).  

Planning in this sense subsumes the course of action in place to facilitate the process of 

delineating organisational goals, instituting the strategies needed to smoothen the 

progress of attaining the organisational goals and the process of creating an all-inclusive 

cause of action that will comprise, incorporate and coordinate all organisational 

resources and operations with the view of attaining maximum output (Robbins and 

Judge 2015: 38 - 39). 

Organising in management entails the process being used to design organisational 

structures. This basically involves the process used by managers/leaders to decide the 

nature of organisational tasks that have to be done, the employee that such task will be 

assigned to, the procedure in which the task will be implemented, the manner in which 

the task will be grouped or divided, the manner at which reporting line is established 

(which is related to the line of organisational hierarchy); and establishing the decision 

making channels between personnels (Robbins and Judge 2015: 38 - 39). All these are 

essential to ensure operational mitigation of conflict in the organisation sphere.  

 



                      36 

 

Furthermore Leading is necessary as a result of the existence of social units in the 

structure and formation of organisations. This is also essential because there is an 

eminent need “to direct and coordinate” employees to make sure that their activities are 

geared towards achieving set organisational goals. This is actualised by encouraging 

employees to give their best, by making sure that “the most effective communication 

channels” is put in place and having in place effective channels needed to swiftly and 

adequately manage organisational crises whenever they arise (Robbins and Judge 2015: 

39).   

Controlling can be defined as the managers/leaders’ ability to ensure general efficient 

and effective oversight of the organisation that they are assigned to oversee. This has to 

do with the managers/leaders’ ability to ensure that operational process, organisational 

performance and organisational resources are being optimised. This in some cases, may 

require the managers/leaders to compel all organisational resources to operate at optimal 

level of efficiency (Robbins and Judge 2015: 39). Management roles can be illustrated 

with the diagram below. 

Table 2: Mintzberg's Managerial Roles   

   
    Source: (Robbins and Judge 2015: 39). 



                      37 

 

Management skills basically have to do with what the managers bring on board in order 

to be able to achieve stated organisational goals. This includes the manager’s skills, 

capability which can be shaped by educational background, experience, horizons, global 

outlook and individual perspectives. All these are essential due to the complex nature of 

contemporary workforce and workplace. This is highly diverse and has made the 

internal and external sphere of workplace extremely complex. It is pertinent to note that 

inputs that employees bring into the workplace are “shaped by a combination of 

individual’s genetic inheritance and childhood environment” (Robbins and Judge 2015: 

58). Thus, managers must be ready for the task ahead. And this is why emphasis is 

placed on the need for managers/leaders to be able to analyse, understand and interpret 

human behaviour and also possess people skills and the capability to facilitate effective 

communication among and within all organisational aspects and entities.  

Management skills can be broken down into three namely; technical skills, human skills 

and conceptual skills. Technical skills involves the manager’s ability to effectively 

“apply specialised knowledge or expertise” to organisational operations (Robbins and 

Judge 2015: 40). This is vital because a number of skills which are required to facilitate 

organisational operations have to be acquired through some form of theoretical and 

practical learning. And these skills can be further developed when being practiced or 

better put, when being put to test. Examples of these skills are knowledge, skills and 

competence built by students who study courses like aeronautical engineering, forensic 

accounting, onshore and offshore drilling to mention but a few. Also, there are some 

skills that are acquired outside the formal education, this relates to vocational and 

technical schools and are also vital.  

Similarly, due to the growing diversity in the work place, differences in orientation, the 

indispensable abilities of employees, and complex nature of the contemporary 

workplace, managers are required to possess remarkable human skills, which can be 

demonstrated in their comprehension, effective communication, inspiration and support 

of employees (Robbins and Judge 2015: 40). Thus, managers need to have good 

listening ears, and perhaps, need to be able to read between the lines. By so doing, they 

will be able to effectively manage their respective employees, bearing in mind that 

managers have to manage the attitudes of employees and mitigate pressure and 



                      38 

 

sometimes sentiments of employees. In view of this, managers are able to understand 

the needs of workers and effectively manage organisational conflicts (Robbins and 

Judge 2015: 40).  

Conceptual skills present managers as the backbone of an organisation. Hence, 

managers are required to possess intellectual and mental capability to critically analyse 

and make an objective diagnosis of complex occurrences that arise in the workplace 

(Robbins and Judge 2015: 40). For example, if an organisation is faced with a 

production difficult, the managers needs to “identify the problem” with a view of 

understanding the root cause, the long and short term effect of the problem to the 

organisation and its implication and consequences. Then the manager will have to 

develop solutions, which can be used to correct the problem at hand. Thereafter, the 

manager will have to critically assess/“evaluate” the solution and the “alternative 

solution” with a view of choosing the best solution. After the above has been 

implemented, the manager will have to develop an action plan and identify the 

organisational resources needed to facilitate the implementation, monitoring and 

evaluation process that will put the action plan on the right path (Robbins and Judge 

2015: 40). 

The above stated are crucial as they exemplify how the workplace can be effectively 

managed. This also has to do with the eminent need of understanding human behaviour 

in management and making sure that organisational practices always put the ever 

changing dynamics of the workplace into consideration. All these are essential in order 

to make sure that organisations attain their respective goals or sets of goals. Perhaps a 

question that may arise at this juncture is if everyone could be a manager or if managers 

are naturally born or made? Perhaps, one has to critically evaluate him or herself before 

taking up managerial task. 

In addition, the above gives insights into the need and importance of strategic 

management in both public and private organisations. Strategic management basically 

has to do with managing “complexity” that routinely arises out of “ambiguous and non-

routine situations” within sphere of an organisation “rather than operation-specific 

implications”. Customarily, when a never ending situation arises, it becomes 



                      39 

 

problematic for managers, who in most cases are “used to managing on a day-to-day 

basis the resources they control” (Johnson, Scholes and Whittington 2005: 15).  

Such problems get blown out of proportion if the manager in-charge lacks the technical 

knowledge and academic competencies required to address the situation, most 

especially, if “background of managers who may typically have been trained, perhaps 

over many years, to undertake operational tasks and to take operational responsibility”. 

This could in a way be excused as the reason why  doctors still see complications in 

medical terms and engineers find difficulties in engineering terms (Johnson, Scholes 

and Whittington 2005: 15).  

Definitely, every characteristics of these situation is substantial, however none of the 

characteristics is “adequate alone”. Therefore, the respective manager who craves to 

mitigate “or influence strategy needs to develop a capability to take an overview, to 

conceive of the whole rather than just the parts of the situation facing an organisation”. 

Similarly, since strategic management is pigeonholed by its intricacies. It is also 

required that processes that lead to decisions, and judgements must be done on 

individual conceptualisation of various problematic subjects, rather than providing 

solutions based on generalisation. It has to be borne in mind that in order to make 

informed conclusions, the managers are required to have comprehensive understanding 

of “the strategic position of their respective) organisation” and also be able to make 

“strategic choices” that are able to facilitate positive process of transforming “strategy 

into action”. This will also bring about better results for the organisation (Johnson, 

Scholes and Whittington 2005: 15 - 16). The importance of strategic management is 

seen as it has become a specific course of study. A Diagrammatical Representation of 

Strategic Management is Given Below.  

 

 

 

 

 

 



                      40 

 

Figure 1: A Model of Elements of Strategic Management 

 

(Johnson, Scholes and Whittington 2005: 15 - 16). 

 

 

 

2.2. Public-Private Partnership      

The history of PPP can be traced to time immemorial and is not traceable to just a 

particular occurrence. For example, the use of a private tax collector was talked about in 

the bible. This can be explained as the process whereby a private tax collector collects 

taxes from the public on behalf of the government. Also, in the 18
th

 century, England 

made use of the services of a private cleaning company to clean public street lamps. 

And in the 19
th

 century; it was estimated that about 82% of the total “197 vessels in 

Drake´s fleet that successfully conquered the Spanish Armada in 1588 were private 

contractors to the Admiralty. And the first ship that sailed to America was a joint effort 

between public and private actors.” (Hodge and Greve 2005: 2) Also, as far back as 



                      41 

 

1652, the Water Works Company of Boston, a private entity provided drinking water to 

Americans (The National Council for Public-Private Partnership 2015a).  

Equally, the inclusion and investment of private funds into the provision of public 

infrastructures in developing countries specifically Africa countries can be said to have 

started around 1970s, and the process has regularly been undergoing transformation. It 

is generally shared that the process started from the notion of privatisation, until it 

gradually transformed into the present day PPP arrangement (Sanni and Hashim 2014: 

135). Although, there have been a number of successful stories of projects that were 

carried out based on PPP arrangements, but there have also been some unsuccessful 

stories.  

However, a number of scholars continue to argue that the unsuccessfulness of PPP is 

because it denotes a public policy ideology of a developed country, being applied to 

underdeveloped or developing world setting, without due consideration on the societal 

differences and the complex nature of context of the individual society. This brings us 

to the notion of ethical imperialism.  

The prevailing inquiry confronting public policy analysts and development scholars 

currently is the pertinence of PPP arrangement to the needs of underdeveloped and 

developing countries (Solana 2014: 262).  This continue to bring a question like, how is 

good governance and management principles practiced when the process and power of 

decision-making is a collective agreement between the public and private sector? Also, 

some scholars wonder how value for money is being identified and how transfer of risk 

is been attained and “operationalised” (Hodge and Greve 2005: 13-14). 

Matters get complicated when the definition of PPP is brought into context. This is due 

to the existence of different definitions for PPP, which continues to be a major 

challenge, as regards what PPP is and what it is not. And the emergence of hybrid 

organisations also brings to question the representation of PPP as a hybrid organisation. 

The non-availability of a clear definition for PPP have been attributed to the lack of 

uniformity of definition in the field of social sciences in comparison with natural 



                      42 

 

sciences, where definitions of terminologies is the same across board. In that regards, 

PPP will be viewed from a number of definitions.  

To begin with, PPP was defined as a “co-operation of some sort of durability between 

public and private actors in which they jointly develop products and services and share 

risks, cost, and resources which are connected with those products.” (Hodge and Greve 

2005: 4 cited in Van Ham and Koppenjan 2001: 598) This definition is important 

because it creates an avenue for the possibility of sharing of liability. And, the 

collaboration that is carried out is for both long and short-term projects, which permits 

the government to focus on some other demanding projects. In addition, PPP can be 

interpreted as organisational arrangements that are used to facilitate the process of 

collaboration, which is articulated through the creation of new institutional entities 

(Hodge and Greve 2005: 4).  

Furthermore, PPP can be said to be associated with infrastructural developments. As a 

result, PPP is seen as a “financial model” that allows the government to make use of 

human and financial resources from the private sector in a way that allows both parties 

to equally share risks (Hodge and Greve 2005: 4). Hence, the problem of non-

availability of financial resources that government usually encounter, (which limits the 

possibility of government to be able to meet up with the needs of the public) is been 

brought under control.  

Basically, PPP entails contracts where the public sector allows the private sector to 

participate in provision of public infrastructure in order to assign risk to the party who is 

capable of mitigating risk. PPP also share responsibilities with the most resourceful and 

capable entity in order to ensure that adequate mechanism and process that will 

guarantee effective, efficient and sustainable service delivery of public infrastructure is 

in place (Solana 2014: 259).  

It has been stated, that PPP are effective and efficient means of acquiring infrastructural 

assets and their complementary facilities in a swift growing level. Thereby, indicating 

an essential modification in the state of affairs between the public and private sector 

(Sanni and Hashim 2014: 134 cited in Ahadzi and Bowles, 2004). In reference to the 



                      43 

 

words of Gidado (2010), the PPP\PFI is distinctive because it provides an avenue for the 

private sector participants to provide the public sector with a fully developed project 

that the public sector requires (Sanni and Hashim 2014: 134).  

2.2.1. Kinds of Public-Private Partnership  

PPP can be carried out through a number of arrangements. This leads us to the different 

types of PPP. To begin with, there is the Build Operate Transfer (BOT). This basically 

is an agreement between the public and private sector, whereby private sector 

participants serve as the principal actors. As such, the private sector is in-charge of 

bankrolling, building and managing the functional process of a development (Grimsey 

and Lewis 2004: 10).  

Basically, what happens here is that the respective government grants concession right 

to the private sector participant(s) who based on such agreement are obliged to take 

responsibility for the funding, designing, “construction and operation of the facility”. 

This agreement usually specify a stipulated number of years which the private sector 

participant(s) will maintain the facility. As a result, the ownership of the facility is 

under the private sector participant(s) within the specific number of years. And at the 

end of the stipulated collaboration period, the ownership is transferred to the 

government. This is usually at no cost and the government is free of any hindrance or 

debt (Llanto 2008a: 321 - 322). For example, the construction of the Suez Canal in 

Egypt was facilitated by a BOT approach (Levy 1996 cited in Llanto 2008a: 322). Also 

the construction of the Garki II ultramodern market, in Abuja, Nigeria was facilitated by 

a BOT agreement.  

In this kind of arrangement, the private sector retains the ownership of the development 

project, which in most cases is, for a long term, for example, from 15 – 30 years. During 

the period when the ownership is retained by the private sector, the private sector 

usually charges the general public for usage of the infrastructure or service. The 

payment arrangement can be in various forms, for example, in the case of a road, a toll 

fee may be charged. And, upon completion of the time duration, in which the ownership 

of the project is exercised by the private sector, the private sector will transfer the 

ownership to the public sector.  



                      44 

 

Similarly, there is the Build Own Operate (BOO). This arrangement is comparable to 

the former in the sense that it entails a contract, which is between the public and private 

sector, whereby private sector participants serve as the major player. In other words, the 

project is funded through the private sector fund and the private sector is solely in-

charge of financing, building and managing the functional process of a development. 

But the distinctive difference in this case is that the private sector (or concessionaire) 

exercise everlasting or permanent ownership of the project or facility (Grimsey and 

Lewis 2004: 11). In this case there is no transfer of ownership of the project or facility 

and the private sector (or the concessionaire) also bears the associated risk of 

maintaining and operating the project or facility.  

In addition, we have arrangements that are referred to as Leasing. This kind of 

agreement takes a different look if compared to the former. This is because the private 

sector is not in-charge of financing the project. Rather, it is only in-charge of 

operational process and maintenance of the project.  

Furthermore, there is Joint Venture (henceforth JV). This takes a new dimension, 

because it entails agreements between the public and private sector, whereby both actors 

are active participants. Thus, both parties jointly finance the building and management 

of the functional process of a project (Grimsey and Lewis 2004: 11). In this case, both 

sectors equally share the risks associated with the project. Also, this type of agreement 

accumulates revenue which is jointly shared between the parties involved.  

JV agreements can be limited by guarantee, and JV in most regards is associated with 

partnership between foreign investors and local partners and the ideal presents diver 

possibilities for fiscal structures and administration systems and mechanism that is 

generally divided into the subsequent two groups, namely Equity Joint Venture 

(henceforth EJV) and Cooperative Joint Venture (henceforth CJV), (The Canadian 

Trade Commissioner Service, 2015).  

Basically, EJV is a business venture formed by means of mutual financial investments 

between both a foreign investor(s) and domestic business organisation, (which in this 

regard is regarded as local partner), whereby profit, loss and risk are shared in relation 



                      45 

 

to the proportion of financial involvement put forwards by both\all participants. It is 

required that “a minimum of 25% of” the overall capital investment in the project of 

facility must originate from the specific foreign investor(s) and the EJV is regarded as 

“a limited liability company, holding an independent legal identity” (The Canadian 

Trade Commissioner Service, 2015). 

As a rule EJVs are obligated to be operated based on a “two-tiered management 

structure”. This is generally made up of a management team which consists of a general 

manager and assistants and a board of directors who are employed on a contract basis 

and are tasked with the day-to-day activities of the business entity (The Canadian Trade 

Commissioner Service, 2015). 

On the other hand, a CJV is similar to EJV but it is a more pliable business entity when 

compared to the structure and mode of operation of EJV which can be termed to be 

inflexible. Basically, CJV is a business venture formed by means of mutual financial 

investments between both a foreign investor(s) and domestic business organisation, 

(which in this regard is regarded as local partner), whereby profit, loss and risk are 

shared “in proportion that may differ from the proportionate ownership interest of each 

investor” or financial involvement put forwards by both\all participants (The Canadian 

Trade Commissioner Service 2015). 

Furthermore, the CJV arrangement does create the possibility for the recovery of the 

capital invested by the foreign investor(s) “to be accelerated”, which helps to reduce the 

risks allocated to foreign investor(s), but the existence of new rules has limited the 

possibility of such practices. A CJV in most cases, can be formed “as a limited liability 

company or a non-legal person (similar to a partnership formed by contract).  Where 

established as a non-legal person, the liabilities of the CJV flow through to the investors 

of the CJV.” (The Canadian Trade Commissioner Service 2015). 

However, the Operation or Management Contracts (OMC) is another distinct model. 

This operates in such a way that though both parties are involved in the project, but the 

private sector takes a limited role. Hence, the public sector plays the major role. In this 

arrangement the private sector could provide technical service or it could use it 



                      46 

 

management expertise to facilitate the process of execution of the project. Such 

arrangement allows the private sector to participate in the process of deliver of public 

infrastructural facilities, which is usually for a specified timeline. A good example is the 

case of Senegal and Cameroon where private actors are in-charge of the management of 

stated owned agro-business (Grimsey and Lewis 2004: 11-12). The foremost feature of 

OMC is that it is used to facilitate projects on short-term (for example, for projects 

between 2 – 5 years).  

OMC can also be viewed from the perspective whereby the private sector participant(s) 

are “being paid a fixed fee by an awarding authority”, usually public sector participants 

to embark on a specific task. The payment in this regard, is not subject to tariffs 

collected and the Private Sector Participant(s) (henceforth PSPs) does not share in the 

risk associated with the depreciation of the project, facility or asset. But, in the 

situations whereby the management contracts are positioned towards performance-

based, the PSPs may participate in sharing the risks associated with the depreciation of 

the project, facility or even risks associated with the state of the asset, which may 

require replacement of major and “minor components and equipment” (The Public-

Private Partnership in Infrastructure Resource Center for Contracts, Laws and 

Regulation (PPPIRC) 2015).  

Sale/Leaseback. This is a business arrangement whereby the public sector sells a facility 

to a private holding establishment or the private sector participant and afterwards the 

public sector leases the facility from the private sector. This is done for a number of 

purposes, for example, government can sell a facility in order to minimise liability. 

During the period of lease, the government continues to operate the facility (The 

National Council for Public-Private Partnership 2015b).  

This can also serve as a process whereby government(s) can ensure better use of 

financial capital tied up in real estate, putting into consideration the conc