The ‘perennial hope’: private sector investment in WASH in Nigeria | Source: WaterAid Blog, Aug 11 2016 |
With WASH in Nigeria suffering low levels of investment, and current investments performing poorly, Michael Ojo, Country Director for WaterAid Nigeria, asks why the Nigerian water sector remains such an unattractive proposition for investors.
As things stand, the true extent of national funding for WASH in Nigeria is difficult to ascertain.
Although the country’s water utilities receive subventions from the Government, funding allocations are inadequate, resulting not only in these utilities producing below capacity but also in a widening of the financing gap for infrastructure investments and maintenance over the years. Investment in strengthening the utilities’ structure and systems has also been insufficient.
Urban utilities have not only not extended their coverage in terms of connections, these have actually declined significantly – from 32% in 1990 to 3% in 2015, according to the 2015 Update Report of the Joint Monitoring Programme (JMP) of WHO and UNICEF.
From whichever angle you look at it, this level of service can only be described as paltry – but it also underlines the opportunity presented. Revenue streams from taxes have not grown, customers are not metered, and the collection efficiency of tariffs and charges remains one of the lowest in the world.
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