Factors Influencing Household Water Consumption and Revenue Generation in Urban Water Supply System in Southwest Nigeria

Abstract

Water security is a pressing issue for most water utilities such as State Water Corporations (SWCs) in urban centres. This study investigated the factors influencing household water consumption and revenue generation in six States of Southwest Nigeria. The water distribution across various local government areas was divided into three clusters from which a total of 1,410 households were selected representing 0.1% of the estimated households in the study areas. Data were collected using household survey questionnaire and SWCs officials with key informant interview guide. Descriptive and inferential statistical techniques were used to analyse the data. Findings revealed that state water corporation revenue generation from the household water consumption could not meet the operational cost for recovery of the operation and maintenance costs of water supply in the urban areas of the six states. Sixty three percent of the households indicated willingness to pay for water services. Eighty percent of consumers have a negative perception of service delivery of which 43% of the households have access to public water and 57% depend on boreholes and well water. Private household deliveries accounted for almost 97% of the water supply in Ondo and Ekiti states while the other four states ranged from 90% to 85%. 80% of water users connected to public water supply were billed uniformly while the collection rate of SWCs across the study areas ranged from 11% to 50%. Only 15% of the households had their water piped, metred but received less than five cubic metres per month thereby hindering revenue generation. The study concluded that performance and revenue generation of the SWCs were below the standard best practices recommended for developing countries. Progressive tariffs and innovative collection methods should be employed in order to increase the revenue generation of SWCs in urban centres.