Tackling potable water scarcity
Lack of basic planning data, manpower shortage and paucity of funds are key factors that explain the scarcity of potable water in Nigeria, according to the final report of the Presidential Committee on Alternative Funding Arrangements for Capital Projects set up by the Goodluck Jonathan government. The committee also reported that water-producing agencies of government find it very difficult to assemble reliable and adequate technical and socio-economic data capable of assisting in the assessment, planning, design, construction and maintenance of various water development projects.
Furthermore, the proper planning, implementation and management of water resources programmes and projects depend principally on the availability of competent personnel. The professionals and sub-professionals are very few in number and some of them are inexperienced. The few available ones have been spread too thin on the design, construction, operation and maintenance of the existing projects. In order to cope with the challenges in the next decade, there is need to step up manpower training and development.
Equally, the non-availability of funds has always posed a major problem to the development of water resources programmes and projects. Since most of the developments in this sector are government-financed, volatility in government finances has often undermined the ability of state governments to effectively fund water projects.
The Lagos State Development Plan (2012-2025), launched by the Babatunde Fashola administration earlier in the year, contains ample illustration of how a state can approach the challenges of providing potable water supply in the short to medium term.
Lagos State plans to surpass stakeholder expectations in the water sector over the next 10 years. It recognizes stakeholder groups in the water sector to include citizens, industries and businesses, personnel of the water sector, regulatory agencies (local, national and international), development partners, international donor agencies, civil society and labour unions.
The state has also identified the priority needs of stakeholder groups to be regular access to sector services at affordable prices, availability of safe and hygienic water supply and prompt response to customers’ complaints. Others are stakeholder involvement in the sector’s policy formulation, project development and implementation, good governance and better living conditions, access to reliable data and information about the sector as well as total deregulation of the sector.
The Water Corporation used a projected population growth of 5 percent per annum to calculate the projected demand for water giving a population of 32 million for Lagos by the year 2025. It is estimated that by 2025 the water demand will be four times the current supply, that is, 780mgd will be required. This will necessitate the construction of new water works and extension of reticulation.
Despite the impressive growth in Internally Generated Revenue (IGR) over the last decade, the state has projected a significant budget funding gap, especially because federal transfers are expected to fall further in the short term. It has therefore committed to seeking innovative ways of increasing revenue, improving efficiency in the management of the budget and engaging other stakeholders in bridging the sector. Options being considered include extending the state’s successful and current Multi-tranche Debt Issuance Programme, which was designed to support the infrastructure development agenda.
LASG will require increased annual spending on the water sector from N9.7bn in 2008 to N300bn in 2025 (in constant 2008 figures), a significant part of the Lagos State total budget in 2025. In addition, private sector spending on water supply needs to be in the range of 90-95 percent of total water sector spending. LASG will also need to implement significant public-private partnerships (PPPs) in the water sector to ensure sufficient private spending for water supply. The state will need to access funding through concessions and PPP contract arrangements across service areas.
Fortunately, the enactment of the 2004 Water Law has created an enabling environment for PPPs. On the ground, the Lagos State Water Regulatory Commission is assisting in promoting the PPPs. We urge other states in the federation to learn from the Lagos State approach to providing potable water for all within the shortest possible time.