The report, titled “Big Debt, Big Thirst: A Case Study of World Bank-Supported Projects in Ekiti, Rivers, and Bauchi States,” examines the long-term impact of privatisation-driven water sector reforms and uncovers systemic failures that have left millions of Nigerians without reliable access to clean water.
A Broken Promise: How a Multi-Million Dollar Project Collapsed
The Third National Urban Water Sector Reform Project (NUWRSP3) was launched with high expectations, with a $250 million loan from the International Development Association (IDA) aimed at transforming water supply services through privatisation and corporatisation. However, five years after the project’s completion, communities remain underserved, while Nigeria faces decades of debt repayment.
CAPPA’s Executive Director, Mr. Akinbode Oluwafemi, highlighted the underlying flaws in these reforms, stating:
“We have observed growing debates about water accessibility—should water remain a fundamental public good, accessible by right, or be treated as a market-driven commodity? Unfortunately, our findings show that privatisation has resulted in steep tariff hikes, workforce downsizing, and continued inefficiencies, rather than improved water access.”
The study argues that Nigeria’s water crisis is not solely environmental or demographic but is worsened by decades of state withdrawal from public investment and the imposition of neoliberal policies that prioritise profit over people.
Case Studies: Failures Across States
- Ekiti State: Infrastructure Without Water
Despite heavy investments in critical water infrastructure, such as the Ero and Ureje dams, residents of Ado Ekiti, Iworoko, and Olorunsogo who paid between N5,000 and N50,000 for prepaid water meters and piped connections still lack reliable water access. Many residents recall the 1990s—when water services were publicly managed—as the last time they had consistent potable water.
- Bauchi State: Electricity Shortages Worsen Crisis
In Bauchi, loan injections for infrastructure upgrades and corporatisation of the state water board failed to resolve chronic water scarcity, primarily due to persistent power supply issues. CAPPA’s report underscores that without addressing electricity deficiencies, any water reform is doomed to fail.
“The dysfunction evident in Nigeria’s national electricity supply similarly afflicts our water systems,” Oluwafemi noted. “We now have corporatised thirst, privatised water, privatised electricity, and enormous debts imposed upon Nigerians, yet the taps remain dry.”
- Rivers State: A Project Abandoned Midway
In Rivers State, NUWRSP3 aimed to enhance water supply for over 1.5 million residents in Obio-Akpor, Port Harcourt. However, coordination failures between the World Bank and the African Development Bank (AfDB), alongside procurement delays, led to the project’s collapse. Eventually, the World Bank withdrew its support, leaving the initiative unfinished.
The Hidden Cost: Debt Without Development
Despite these failures, Nigeria remains burdened with debt repayment for the project. With loans denominated in foreign currency, funds that could have been used for vital public investments are now being funneled into debt servicing, exacerbating economic hardship amid soaring inflation.
CAPPA’s report raises a critical question:
“Who takes responsibility for these failures?”
A Call for Change: Water as a Human Right
The report strongly recommends an immediate halt to the privatisation of water services in Nigeria, advocating instead for public investment, transparent governance, and community-driven solutions. CAPPA calls for:
- Increased public funding for water infrastructure, potentially sourced from Nigeria’s natural resource earnings.
- Regulatory frameworks to ensure equitable access and sustainability.
- Democratic control over water utilities, preventing corporate exploitation.
“We must challenge the ideological framework driving the privatisation of public utilities,” Oluwafemi stated. “Financial institutions and private corporations continue to benefit at the expense of ordinary citizens.”
Experts Speak: The World Bank’s ‘Vicious Cycle’
Prof. Adelaja Odukoya, Dean, Faculty of Social Sciences, University of Lagos, described the World Bank’s loan system as a “vicious cycle” that primarily benefits the institution through high-interest payments while serving as a means for political officeholders to enrich themselves discreetly.
Reflecting on the report, Sefa Ikpa, CAPPA’s Programme Officer for Water Campaigns, emphasized that NUWRSP3’s failures betray the World Bank’s core mission of poverty reduction.
“The World Bank claims to lend money to improve economies and living standards. But in Nigeria, their water sector projects have only deepened hardship.”
Conclusion: A Dry Future or a Policy Shift?
Nigeria’s ongoing water crisis serves as a stark reminder of the risks of privatising essential services without strong public oversight. As debt obligations mount and millions remain without water, the need for a policy shift—from profit-driven models to publicly funded, community-driven solutions—has never been more urgent.
Will Nigeria’s policymakers heed these warnings and prioritise public welfare over corporate profit? Or will another generation be left thirsty, indebted, and abandoned?