A study analyzing the effects of privatization initiatives proposed by global financial organizations, notably the World Bank, uncovered a series of systematic issues that have persistently hindered water accessibility for numerous people in Nigeria.
The report titled ‘Big Debt, Big Thirst: A Case Study of World Bank-Supported Projects in Ekiti, Rivers, and Bauchi States’ was conducted by Corporate Accountability and Public Participation Africa (CAPPA).
During the official unveiling of the report in Lagos, Akinbode Oluwafemi, who serves as the Executive Director of CAPPA, stated: “Nigeria faces a severe shortage of clean drinking water, a situation mirrored throughout many parts of Africa. The discussion surrounding this crucial matter often cites issues like fast-paced population expansion, shifting weather patterns, outdated facilities, and ineffective governing bodies as reasons for the poor functioning of public water services.”
However, our study indicates that the water crisis affecting Nigeria and many parts of Africa isn’t solely due to environmental or population factors; rather, it’s also an inevitable result of prolonged governmental disinvestment in public services combined with the strict enforcement of neoliberal policies portrayed misleadingly as routes to progress. Amidst these discussions, there has been increasing dialogue regarding access to water, specifically concerning whether water ought to continue being considered a basic public resource available to all by right, or if it should instead be viewed as a commercially traded item governed by the impartial dynamics of market-based supply and demand.
Presenting the data from each state, he stated, “The widespread advocacy for privatization and commercialization positions them as effective remedies for deficiencies within the public sector. Advocates assert that these strategies inherently stimulate investments and enhance operational effectiveness. However, the practical outcomes observed in Ekiti, Rivers, and Bauchi states paint an entirely contrasting picture. Rather than enhanced water accessibility and better infrastructure, residents have faced significant increases in tariffs, reductions in staff numbers, decreased governmental responsibility, and persistent issues with system efficacy.”
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The Third National Urban Water Sector Reform Project (NUWRSP3) funded by a substantial $250 million loan from the International Development Association, aims to bring about revolutionary changes to state water sectors via privatization and corporatization.
Nevertheless, our conclusions clearly indicate that five years following the conclusion of the project, and with the national debt scheduled for repayment over four decades, local populations continue to suffer from inadequate services and profound disappointment. Problems like insufficient managerial responsibility and unreliable electricity provision, identified as critical concerns during public administration, have not been resolved and appear to be more pronounced within this privatization-focused restructuring model.
Consider Ekiti State, where considerable funds were allocated towards crucial infrastructure projects such as the Ero and Ureje dams through the NUWSRP3 initiative. In regions including Iworoko and Olorunsogo ( Zones 1A-C, Zone 2, and Zone 4), residents who invested between NGN 5,000 and NGN 50,000 to secure prepayment water meters and pipe connections from centralized supply stations in Ado Ekiti, the state’s main city, still face severe shortages of clean water. Upon inquiry, numerous locals reminisce about the 1990s as the era with reliable access to drinking water—a paradoxical time when public management handled water services more effectively.
In Bauchi State, the infusion of loans intended for infrastructure improvements and the corporatization of the state waterboard has not addressed the ongoing issue of water shortage, largely because of continual power supply problems. This scenario strengthens our longstanding belief that privatizing vital services—often seen as the cure-all for inefficiencies within the public sector—is typically far from being foolproof.
He stated: “In Rivers State, we encountered additional complexities. The NUWRSP3 in Rivers State, aimed at improving water service delivery for more than 1.5 million inhabitants in the Obio-Akpor region of Port Harcourt, was originally planned as a joint initiative involving both the World Bank and the African Development Bank (AfDB). Nevertheless, inadequate collaboration between these two funding organizations along with issues related to procurement caused significant delays in the progress of this project, which eventually resulted in the World Bank deciding to withdraw its backing.”
For our perspective, the termination of World Bank backing during the project highlights the outcomes of discord among institutions, particularly within what’s known as the privatization framework. It also underscores how certain aspects of global development funding can become skewed. This occurs when strict deadlines and loan stipulations take precedence over real-world needs and community welfare, ultimately failing those who desperately require assistance.
Even though these setbacks have occurred, people continue to grapple with significant debts, imposing heavy financial burdens upon them. Since these loans are in foreign currencies, they redirect crucial funds away from critical public projects, intensifying economic struggles as inflation rises and economic prospects dim. Therefore, an important query emerges: Who should be held accountable for these failures?
Additionally, Professor Adelaja Odukoya, who is the Dean of the Faculty of Social Sciences at the University of Lagos (UNILAG), criticized the World Bank’s initiative to privatize water supplies. He encouraged the Nigerian government to explore internal alternatives instead.
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