CAPPA warns Lagos water concession, prepaid meter expansion could worsen water crisis

By Onu Okorie

Corporate Accountability and Public Participation Africa CAPPA has cautioned the Lagos State Government against plans to concession parts of the state’s public water infrastructure, warning that the move could deepen challenges in access to safe and affordable water for residents.
The warning follows the signing of a one-year Memorandum of Understanding MoU between the Lagos State Government, China Harbour Engineering Company CHEC and Naston Engineering Nigeria Limited for a proposed water infrastructure programme in the Lekki Concession Area.
According to CAPPA, details of the agreement indicate that the first phase of the project will involve the installation of a transmission pipeline beneath the Lagos Lagoon into the Lekki Concession Area, while the second phase will focus on downstream distribution, including metering and last-mile connections. The programme is expected to produce a technical report and implementation framework that could support a future concession arrangement.
The organisation argued that the arrangement signals an early move toward water concessioning and could hand private firms significant influence over water distribution, tariffs, metering and household access. CAPPA also criticised what it described as a lack of transparency, noting that no publicly accessible copy of the MoU or details of community consultations had been released.
“ There is no publicly accessible record showing the project’s full scope, how the consortium was selected, what obligations the companies have assumed, or how residents have participated in its development,” CAPPA stated.
The group further maintained that private sector involvement would not solve the long-standing problems facing Lagos’ water sector, which it attributed to inadequate investment, poor maintenance, unreliable electricity supply and weak distribution networks. It argued that government should strengthen public institutions rather than transfer core responsibilities to private operators.
CAPPA also opposed the planned expansion of prepaid water meters, warning that the system could restrict access to water for low-income households by disconnecting supply once purchased credit is exhausted.
Holiness Segun-Olufemi, CAPPA’s Water Programme Officer, said automated disconnections associated with prepaid water systems could have serious implications for public health and vulnerable communities.
The organisation drew parallels with Nigeria’s electricity sector reforms, arguing that privatisation had not delivered reliable service despite increased tariffs and continued public intervention. CAPPA warned that a similar model in the water sector could lead to higher costs for consumers without guaranteed improvements in service delivery.
It also cited complaints from residents in the Akilo and Baruwa areas of Lagos, where prepaid water meters have reportedly been introduced. According to the group, residents reported intermittent supply, activation delays, low water pressure and discrepancies between purchased and received volumes.
Calling water a human right and a public good, CAPPA urged the Lagos State Government to halt further concession plans and suspend the expansion of prepaid metering. The organisation also demanded the publication of the CHEC-Naston MoU and called for a publicly funded plan to rehabilitate water treatment plants, pipelines, reservoirs and distribution networks across the state.
CAPPA said substantial investment in Lagos’ water infrastructure remains necessary but insisted such investments should strengthen the Lagos Water Corporation and guarantee universal access rather than create opportunities for private profit from an essential public service.