World Bank’s Water Privatisation Reforms Failing Nigerians – CAPPA Report
The Corporate Accountability and Public Participation Africa (CAPPA) has exposed the failures of the World Bank’s water privatisation reforms in Nigeria, leaving millions without reliable access to potable water while saddling the country with long-term debt.
Titled Big Debt, Big Thirst: A Case Study of World Bank Supported Projects in Ekiti, Rivers, and Bauchi States, the report was presented at a media briefing in Lagos, where CAPPA’s Executive Director, Akinbode Oluwafemi, criticised the World Bank’s approach to water governance. According to the report, the privatisation model, championed under the Third National Urban Water Sector Reform Project (NUWSRP3), has worsened water accessibility instead of improving it.
“Instead of delivering better water services, privatisation has led to higher tariffs, job losses, lack of public accountability, and continued inefficiencies,” Oluwafemi stated.
Water Shortages Despite Multi-Million Dollar Investments
The NUWSRP3, backed by a $250 million loan from the International Development Association (IDA), aimed to modernise water supply systems through privatisation and corporatisation. However, CAPPA’s findings indicate that, years after project completion, communities remain underserved, and many residents still lack access to potable water.
In Ekiti State, despite significant investment in key infrastructure such as the Ero and Ureje dams, communities in Ado-Ekiti, including Iworoko and Olorunsogo, continue to face severe water shortages. Many residents who paid between ₦5,000 and ₦50,000 for prepaid meters and piped connections still experience dry taps, with some recalling the 1990s—when water utilities were publicly managed—as the last period of reliable supply.
Similarly, in Bauchi State, the corporatisation of the state’s water board has failed to resolve persistent water scarcity, largely due to power supply challenges. CAPPA’s report highlights that poor electricity infrastructure directly undermines water distribution, making privatisation an ineffective solution to the state’s water crisis.
Privatisation Model Undermined by Structural Challenges
The report further examines Rivers State, where the NUWSRP3 was supposed to enhance water supply for over 1.5 million residents in Obio-Akpor, Port Harcourt. However, poor coordination between the World Bank and the African Development Bank (AfDB) caused significant delays, ultimately leading to the World Bank’s withdrawal from the project.
“This withdrawal highlights a fundamental flaw in international development financing—where rigid timelines and loan conditions often ignore on-the-ground realities,” Oluwafemi remarked.
Mounting Debt Burdens and Call for Policy Shift
Despite these project failures, Nigeria remains responsible for repaying the foreign loans tied to them, further straining the nation’s economy amid rising inflation and dwindling public funds. CAPPA argues that the World Bank’s insistence on privatisation has not only failed to deliver results but has also deepened Nigeria’s economic dependency and inequality.
The organisation is calling for an immediate halt to water privatisation in Nigeria, advocating instead for increased public investment, stronger regulatory frameworks, and greater community participation in water management. CAPPA insists that water should be treated as a fundamental human right rather than a commercial commodity.
“The failures of water privatisation in Nigeria mirror the ongoing challenges in the electricity sector. Nigerians are paying more for services they barely receive,” Oluwafemi noted.
Way Forward
CAPPA recommends that revenue from Nigeria’s natural resources be allocated to water infrastructure, alongside increased government funding at both federal and state levels. The report also calls for a re-examination of international financial institutions’ influence over Nigeria’s water governance policies.
As water scarcity continues to plague communities across the country, the findings of Big Debt, Big Thirst serve as a critical warning against further privatisation of essential public services. The question remains: Will the Nigerian government take decisive action, or will economic pressures and external influences continue to dictate its water policies?
