Corporate Accountability and Public Participation Africa (CAPPA) has criticised the Lagos State Government over what it described as a “non-transparent” Memorandum of Understanding (MoU) signed with the Belstar/ENKA consortium for the rehabilitation and expansion of the state’s water infrastructure.
In a strongly worded statement, CAPPA expressed alarm at the lack of public disclosure around the agreement, warning that the opaque process undermines democratic accountability and raises serious concerns about the future of water access in Lagos.
While the Lagos State Government presented the MoU as a strategic step toward addressing the city’s water challenges, CAPPA said the absence of critical information surrounding the deal—including project scope, contractor credentials, financial terms, and ownership structure—casts a shadow over its legitimacy.
“This deal was finalised behind closed doors and announced without public consultation or legislative oversight,” said Akinbode Oluwafemi, Executive Director of CAPPA. “That is unacceptable for a public utility as essential as water, which affects millions of lives daily.”
Key Concerns Raised by CAPPA:
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Lack of contractor transparency: Who are Belstar Capital and ENKA? What is their track record and registration status in Nigeria?
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Project ambiguity: What specific waterworks or areas are involved? How will this affect affordability and access, especially for low-income residents?
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Undisclosed financials: What is the total cost of the deal? What are the loan terms, repayment structure, and potential tariff implications?
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Ownership and control: Will the completed infrastructure remain publicly owned, or is privatisation on the horizon?
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Unclear role of Lagos Water Corporation (LWC): Is LWC taking a lead, or merely supporting the consortium?
The involvement of the US International Development Finance Corporation (DFC) in insuring the deal also raised eyebrows, with CAPPA citing previous corporate-driven water agendas supported by US institutions. The group pointed to recent USAID disengagement from the Lagos water sector as further reason to question foreign influence and priorities.
CAPPA further accused the state government of persistently courting privatisation despite public opposition and evidence that public-private partnerships often result in higher water tariffs, inequitable access, and service inefficiencies.
CAPPA’s Demands
In light of its concerns, the organisation issued a set of immediate demands:
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Public release of the full MoU, including annexes, financing details, and timelines.
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A stakeholder forum involving civil society, labour groups, communities, and media to discuss the agreement’s scope and implications.
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A moratorium on water privatisation, with a binding commitment that all rehabilitated and newly built infrastructure under the MoU remain under public ownership and democratic control.
“The solution to Lagos’ water crisis does not lie in ceding control to profit-driven entities,” CAPPA asserted. “We urge the government to invest in public infrastructure, empower public institutions, and embrace open, participatory water governance.”
The organisation reiterated that access to safe, affordable water is a human right and must not be compromised by opaque deals or commercial interests.
