Commercialisation

LSWC edict cap 108 of 1994 of Lagos State mandates the Lagos State Water Corporation to provide potable water supply to the entire populace.
In the past 10 years, LSWC, with the assistance of the World Bank, has invested about N500 million for the provision of water to Lagos State residents, which translates to about 5000 per capita.

This investment covered additional primary main (supply & laying), secondary and tertiary mains, detailed land design, supply & house correctors, rehabilitation works on primary, secondary and tertiary pipes, house connections, mini-waterworks, anti-salinity weir, Ishasi Waterworks, administrative infrastructure, institutional support, Adiyan Waterworks phase 1, and procurement of equipment. Audited accounts show that in 1994, 95 and 96, LSWC spent N170 million, N275 million and N400 million on chemicals, respectively.
Electricity charges attracted N48 million, N77 million and N111 million for the same period Operational expenses amounted to N233 million, N439 million, N581 million, and N662 million in 1994, 95, 96, 97, respectively.

Electricity charges attracted N48 million, N77 million and N111 million for the same period Operational expenses amounted to N233 million, N439 million, N581 million, and N662 million in 1994, 95, 96, 97, respectively.


These trends have continued till this present time. The financial obligations of LSWC to the World Bank and other funding agencies that provided the loan for this investment have always been met, though with much strain.

From the foregoing, it is established that LSWC spends over a billion to make water available to consumers yearly. It is, therefore, expected that LSWC should also cover its costs through collection of water rates from consumers. Unfortunately though, this remains a thorny issue between consumers and LSWC

Many consumers fail to see potable water as an economic good with a cost. The implication is that many people default on payment for consumption made. Some have often justified their actions by clinging to the notion that water should be a free social good.

Ironically, this same people are ever willing to pay for water supplies from borehole operators and water vendors in the neighbourhood whenever the LSWC supply is not forthcoming.
The public is, therefore, expected to change its attitude to payment of water rates.
Common sense also dictates that payment of water rates will guarantee a regular flow of potable water via LSWC pipes to our houses or at our backyards. This is a more convenient source than going through the rigour of fetching water across the streets.


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The collection efficiency of LSWC is at such a dismal level. Ideally, tariff and other revenue collection efforts should reflect the recovery of costs (including debt service and depreciation) and the limited accumulation of funds for future development. But collection efficiency calculated as payments received in relation to the billing is 23.6% for metered customers and 20.5% for flat rate customers. Out of the 110,000 quarterly bills issued, about 35,000 are making either partial or full payment.
The cumulative arrears in 1998 was about N3.094 million for flat rate customers and N540 million for metered customers.

Another issue affecting LSWC supplies is the damage to water mains by thieves and people making illegal connections.
It increases the unaccounted for water in the system.
All hands should be on deck to protect these installations.
An illegal connection will surely lead to a reduced pressure through serious leakage and pipe bursts. And this will dampen the enthusiasm of the few willing consumers.

Having identified the myriad of problems facing LSWC in the face of scarcity of funds from the government due to increasing competing demands of various departments of the government, a change of attitude is inevitable.
A new approach to water management, incorporating a robust commercial orientation, with the involvement of the private sector in water production, distribution, sales, and general administration is highly desired.

For further enquiries, contact:
Privatisation of Water & Sanitation Office,
Lagos State Water Corporation
Headquarters
Ijora - Lagos
P.O Box 555, Marina.
Lagos Nigeria.
Tel: 01 - 7749034.

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