Public-Private-Partnership (PPP) in Nigeria is a major issue of discourse among individuals, corporate bodies and government. PPP is a tool to deliver the much needed infrastructural services. Building modern, sustainable and reliable infrastructure is critical for meeting the rising aspirations of millions of people in Nigeria and PPP helps to raise economic growth rates, offers new economic opportunities and facilitates investment in human capital. This paper examines the historical background and types of Public-Private-Partnership in Nigeria. It discovers that the problems or the challenges of Public-Private-Partnership include multiplicity of functions by various bodies, definitional issues, joint venture agreements, conflicts and contractual review conflicts. The paper discovers that one of the major challenge in PPP agreements is the absence of arbitration clause in the contracts. The paper recommends that the insertion of arbitration clause should be encouraged to reduce incidences of prolonged litigation. Synergy among regulatory bodies is also recommended to foster reduction in the issue of double taxation and encourage more private investment participation. The paper concludes that Public-Private-Partnership remains one of the most important developmental avenues available to the government to revive the decaying public corporations, utilities and public goods and services of global standards through cost effective mechanisms.