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W’Bank-funded Water Projects Fail to Deliver, Burdening Nigerian States with Debt

By Abbas Nazil

A World Bank-backed water project designed to enhance access to clean water in Bauchi, Ekiti, and Rivers states has instead left these states struggling with debt while failing to meet water supply expectations.

This is according to a report by Corporate Accountability and Public Participation Africa (CAPPA), which highlights the shortcomings of the $250 million loan under the Third National Urban Water Sector Reform Project (NUWSRP3).

As Nigeria plans to secure six additional loans worth $2.23 billion from the World Bank in 2025, concerns over the country’s rising debt profile and ineffective public service improvements continue to grow.

Data from the World Bank indicates that these new loans will bring Nigeria’s total approved borrowings to $9.25 billion over three years.

Despite these loans being aimed at enhancing infrastructure, healthcare, education, and economic resilience, critics argue that they have not translated into tangible benefits for Nigerians.

The CAPPA report, titled: Big Debt, Big Thirst: A Case Study of World Bank-Supported Projects in Ekiti, Rivers, and Bauchi States, highlights the failures of the water sector project, leaving many communities without access to clean water.

Speaking at the report’s presentation in Lagos, CAPPA Executive Director Akinbode Oluwafemi stated that instead of providing improved water access, communities have been subjected to dry taps, high tariffs, and deteriorating infrastructure, while the government remains locked in a 40-year debt repayment plan.

Citing Ekiti State as an example, Mr. Oluwafemi noted that despite significant investments in infrastructure such as the Ero and Ureje dams, residents in areas like Iworoko and Olorunsogo still suffer from water shortages.

Many of these residents had paid between N5,000 and N50,000 for prepaid meters and pipe connections in hopes of securing reliable water access.

In Bauchi State, infrastructural upgrades and the corporatization of the state water board have not resolved persistent water shortages, largely due to chronic electricity supply issues.

The report argues that the World Bank’s approach to water sector reform, which promotes privatization, has worsened water access in Nigeria.

According to CAPPA, commercializing water utilities has led to increased tariffs, reduced public oversight, and deepening inequalities, making access to water more difficult for low-income residents.

As a result, many Nigerians are forced to rely on expensive alternatives like sachet water and private boreholes, even as they continue to service debts for projects that failed to meet their needs.

The World Bank’s push for water privatization in Africa has long faced resistance from civil society groups.

In 2018, about 150 civil society organizations urged African governments to reject privatization policies and adopt public sector-driven alternatives.

Similarly, in 2015, protests against privatization in Lagos State led to the breakdown of talks between the World Bank’s International Finance Corporation and the Lagos Water Corporation.

CAPPA calls for an immediate halt to water privatization and advocates for returning control of water services to the public sector.

The organization urges the Nigerian government to increase budgetary allocations for water infrastructure and explore public funding models leveraging natural resource revenues.

Meanwhile, concerns have been raised over financial mismanagement in Rivers State, where the World Bank withdrew funding after $31 million had been disbursed.

The state is now required to repay these funds along with over $1 million in interest, further burdening the local government.

Despite repeated efforts, officials from the affected states, including Bauchi and Ekiti, have not responded to inquiries about the project’s failures.

Similarly, the World Bank’s representative in Abuja, who initially promised to comment, has yet to provide an official response.

However, in a previous statement, the World Bank’s Global Director for Climate Change, Jennifer Sara, said the institution was indifferent to the ownership model of water infrastructure, as long as it provided clean and affordable water.

With millions of Nigerians still lacking access to clean water, CAPPA warns that continued privatization will only deepen social inequalities and financial hardships, turning the struggle for public-controlled water systems into a fight for fundamental human rights.

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