Nigeria, Lagos: bill signed to privatise water sector

A new legal framework for the privatisation of the water sector in the state has been passed and signed into law by the Lagos State Governor, Bola Tinubu. Aside from unbundling the former corporation by establishing six subsidiaries [1], the new law also makes provision for a water regulatory commission. The corporation needs to transform from a debt ridden organisation reeling under the weight of a NGN 15.5 billion (EUR 88.7 million) debt to a viable private sector company. While implementing the new law, the corporation will “ensure it addresses the "Paradox of Water" whereby the poor pay more for water”, says Mr Olumuyiwa Coker, Group Managing Director and Chief Executive of LSWC. He says that the corporation has to restructure if it is to meet the magnitude of demand by Lagosians put at 1,200 million gallons per day. Coker also states that the corporation, while embarking on the rehabilitation and modernisation of obsolete water supply infrastructure in the state, will require between US$ 1.8-2.5 billion (EUR 1.3-1.9 billion) to meet the projected 2 billion litres per day requirement by 2020.

[1] Lagos Water Corporation LSWC; water utilities Ltd/Gte; Property and General Services Company Ltd, Information Technology and Telecommunication Company Ltd; Training and Research Centre Ltd/Gte; and Power Generation Company Ltd.

Contact: LSWC, Lagos, Nigeria, contact@lagoswater.com, http://www.lagoswater.com/

Source: This Day, 14 Nov 2004

Keywords

• Financing
• Governance