Why World Bank water projects in Ekiti, Rivers, Bauchi failed —Report

A report that examined the implications of privatisation reforms advocated by international financial institutions, particularly the World Bank, has revealed a pattern of systemic failures that continued to compromise water access for millions of Nigerians.

The report, ‘Big Debt, Big Thirst: A Case Study of World Bank Supported Projects in Ekiti, Rivers and Bauchi States’ was done by Corporate Accountability and Public Participation Africa (CAPPA).

Speaking during the public presentation of the report in Lagos, Akinbode Oluwafemi, Executive Director of CAPPA, said: “There is a crisis of potable water availability in Nigeria and across much of Africa. However, public discourse around this critical issue frequently attributes the problem to factors such as rapid population growth, climate change, ageing infrastructure, and weak governance structures that impact the performance of public water systems.

“But our research reveals that the water crisis confronting Nigeria and much of Africa cannot simply be attributed to environmental or demographic pressures alone but also the predictable outcome of decades-long state withdrawal from public investment, coupled with the aggressive imposition of neoliberal policies falsely presented as pathways to development. In this context, we have observed growing debates about water accessibility, particularly around whether water should remain a fundamental public good, universally accessible by right, or be treated as a market-driven commodity, subject to the impersonal forces of profit-oriented supply and demand.”

Giving findings from each of the states, he said: “Privatisation and commercialisation are widely promoted as efficient solutions to public sector shortcomings. Proponents of this approach argue that market mechanisms naturally foster investment and operational efficiency. Yet, the empirical reality from Ekiti, Rivers, and Bauchi states tells a markedly different story. Instead of improved water access and infrastructure, citizens experience steep tariff hikes, workforce downsizing, diminished public accountability, and continued systemic inefficiencies.

“The World Bank’s Third National Urban Water Sector Reform Project (NUWRSP3), supported by a significant $250 million loan from the International Development Association, promised transformative results for state water sectors through privatisation and corporatisation.

“Yet our findings unequivocally hold that five years after the project’s completion and with a national debt repayment stretching over 40 years, local communities remain deeply underserved and disappointed. Systemic issues such as lack of managerial accountability and inconsistent power supply, which were flagged as major challenges under public management, remain unaddressed and even exacerbated under this private-driven reform framework.

“Take Ekiti State, for instance, where substantial investments were made in critical infrastructure like the Ero and Ureje dams under the NUWSRP3. Residents in areas such as Iworoko and Olorunsogo (Zones 1A-C, Zone 2, and Zone 4), who paid significant amounts-between N5,000 and N50,000-to obtain prepaid water meters and piped connections to central water points in Ado Ekiti, the state capital, continue to suffer water deprivation. When engaged, many community members nostalgically reference the 1990s as the last period when they had consistent access to potable water-ironically, a time when water utilities were publicly managed.

“Similarly, in Bauchi State, the loan injection aimed at infrastructural upgrades and the corporatisation of the state water board has failed to resolve chronic water scarcity, primarily due to persistent electricity shortages. This situation reinforces our long-held conviction that the privatisation of essential utilities, often heralded as the panacea for public sector inefficiencies, frequently proves anything but infallible.”

He added: “In Rivers State, we observed further complexity. The NUWRSP3 in Rivers State, designed to enhance water supply services for the over 1.5 million residents in the Obio-Akpor area of Port Harcourt, was initially envisioned to be a collaborative effort between the World Bank and the African Development Bank (AfDB). However, ineffective coordination between the two financial institutions and procurement challenges led to severe delays in advancing the project and culminated in the World Bank ultimately withdrawing its support.”

“For us, the withdrawal of World Bank support mid-project exemplifies the consequences of inter-institutional misalignment even in the so-called privatisation model and the sometimes-distorted nature of international development financing where rigid timelines and loan conditions override practical realities and public interest, leaving communities in dire need unmet.”

“Despite these failures, the burden of debt repayment persists, saddling citizens with enormous financial obligations. These loans, denominated in foreign currency, divert precious and scarce monies away from urgent public investments, further exacerbating economic hardship amidst soaring inflation and poor economic outlook. A pertinent question thus arises: Who takes responsibility for these failures?”

Also speaking, the Dean of the Faculty of Social Sciences, University of Lagos (UNILAG), Prof Adelaja Odukoya, also faulted the water supply privatisation drive by the World Bank and urged the Nigerian government to look inward for alternative methods.

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