Factors Influencing Operation and Maintenance Cost Recovery in Urban Water Supply System in Southwest Nigeria

Abstract

In Southwest, Nigeria affordability has been the prime concern of those setting water tariffs in urban water sector leading to financial unsustainability of utilities (state water corporations). The recovery of the operation and maintenance (O & M) costs are major challenges confronting most water utilities such as State Water Corporations (SWCs) in urban centres. The study is to assess the factors influencing operation and maintenance costs in six States of Southwest Nigeria. Cross sectional survey design and key informant interview guide were employed for data collection. Copies of questionnaires were administered to 1350 household respondents and SWCs officials with key informant interview guide. Data were analysed using descriptive and multiple regression analysis. The results revealed that cost recovery for the operation and maintenance costs of water supply in the six states ranged between 35% and 45% in the urban areas. 63% of the households indicated willingness to pay for water services. Water services dropped significantly below 12 hours a day in the study area, while approximately 80% of consumers have a negative perception of service delivery. The operation and maintenance costs to average cost recovery ratio was found to be 0.38 which negatively and significantly influenced water supply. The study concluded that the recovery of operation and maintenance costs of the SWCs were below the standard best practices of 75% recommended for developing countries. Therefore, the need for restructuring tariffs to meet operation and maintenance cost and better targeting for subsidies for SWCs in urban centres