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Abstract:
This paper examined the current practice of supplying water at free cost to consumers from the Greater Lokoja Waterworks in Kogi State, North-Central Nigeria. Concern for the sustainability of such an approach on the long run was expressed, more especially at such a time as now when government revenue base is dwindling. It is observed from literatures that tariffs charged on consumers have been a major source of funds to complement government subsidies in financing the operations of public utility companies in other states in Nigeria. Benefits of such a good tariffs and subsidies plan for water utility companies as obtainable in developed countries were highlighted. The paper also discussed the need for the Kogi State Government and the Greater Lokoja Waterworks to conduct a willingness to pay (WTP) study on the different categories of consumers in the town with a view to introducing an equitable tariff. Other sources of revenue generation by the waterworks as suggested in this paper included connection fees for new customers, infrastructure development levy, etc. as these have not been applied in the waterworks A framework for revenue generation has been prepared from the study showing different revenues options available to the waterworks which can easily be adopted for sustainability. The benefits of this framework among others include significant improvement in the health and sanitation status of consumers of the improved water source from the waterworks, who are incidentally residents of Lokoja in Nigeria.
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