Following a months-long investigation, Corporate Accountability and Public Participation Africa (CAPPA) on March 28, 2025, unveiled its latest report, Big Debts Big Thirst: A Case Study of World Bank-Supported Water Projects in Ekiti, Rivers, and Bauchi States.
The report, presented to the media, civil society organisations and water rights activists from across the world via a physical and virtual launch from CAPPA’s head office in Lagos, queried the World Bank’s promotion of a neoliberalist agenda in Nigeria’s water sector, arguing that it has not only failed to guarantee water supply but also left some states in crippling debt through the market-driven conditions attached to its loan services.
‘Disturbing pattern of systemic failures’
In his welcome address, Oluwafemi said the report examines the ongoing implications of privatisation reforms advocated by international financial institutions, particularly the World Bank, and reveals a disturbing pattern of systemic failures that continue to compromise water access for millions of Nigerians.
“Our research exposes 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,” Oluwafemi said.
He observed that privatisation and commercialisation are widely promoted as efficient solutions to public sector shortcomings, but that the scrutiny of the World Bank’s intervention in the three states’ water sector suggested otherwise. Oluwafemi highlighted that instead of improved water access and infrastructure, citizens in the three states have experienced steep tariff hikes, workforce downsizing, diminished public accountability, and continued systemic inefficiencies since the adoption of market-oriented water sector reforms.
“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 forty 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,” he added.
Oluwafemi lamented that 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,” Oluwafemi said.
‘Loans focused on commercial feasibility rather than accessibility to clean water’
Sefa Ikpa, CAPPA’s Water Campaign Program Officer, provided an in-depth analysis of the report, highlighting that eligibility for states to access funding and participate in the NUWSRP3 was contingent upon the adoption of state water policies favouring private sector participation. This requirement led to the transformation of state water boards into corporatised entities, ostensibly to attract private investment.
However, CAPPA’s field investigations in Bauchi, Ekiti, and Rivers states revealed significant discrepancies between the projected outcomes and the on-the-ground realities. Despite substantial investments, communities in these states continue to face chronic water shortages, increased tariffs, and diminished public accountability, underscoring the ineffectiveness of market-driven approaches in addressing fundamental water access issues.
She revealed that in Rivers State, the World Bank withdrew its funding after disbursing about $30 million due to complications arising from overlapping coordination responsibilities with the African Development Bank (AFDB).
In-depth interviews, questionnaires
Adeyeni, Program Officer at CAPPA, noted that qualitative methods were employed for in-depth interviews, whereas quantitative approaches were utilized to gather numerical data regarding the project’s impact. He explained that the assessment focused on specific states that are beneficiaries of the program, with notable visits in 2022 to Ekiti State, where two assessments were conducted, followed by additional visits in 2024 to Ekiti, Bauchi, and Port Harcourt in Rivers State.
During the assessments, a total of 310 questionnaires were administered, with 132 responses from Ekiti, 9 from Bauchi, and 8 from Rivers State. The research engaged household heads, community leaders, and women, incorporating their perspectives through interviews and focus group discussions.
‘Report’s Findings Ought to Be Acted On’
Zikora Ibeh, Assistant Executive Director of CAPPA, emphasized the importance of reviewing the report’s findings to inform future actions. She highlighted significant concerns regarding the World Bank’s solutions, observing that they do not align with the socioeconomic realities faced by the communities.
“The program has gone through several phases, having been implemented in the first, second, and a current third phase that concluded five years ago. Despite ongoing evaluations, feedback from the World Bank has consistently rated the program as ‘moderately unsatisfactory,’ Ibeh said.
Urging stakeholders to adopt the report’s findings, Ibeh added: “Implementing sustainable cost tariffs for water services remains a challenge, underscoring the need for localized strategies that truly address the communities’ needs.
The speakers at the launch argued that mounting debts from the loans could spell disaster for local economies, particularly in the absence of promised improvements in water accessibility. They emphasised the urgent need for a re-evaluation of how such international investments are structured and executed, lest they continue to fail the very communities they are meant to serve.
Other discussants at the event affirmed the report, saying it corroborated the reality of Nigeria’s public water supply situation. They flayed the World Bank’s intervention in developing economies, saying its aim was primarily to return a profit for its owners in the West.
‘World Bank primarily benefits Western powers’
Prof Adelaja Olukoya, the Dean of Faculty of Social Sciences in University of Lagos, criticized the Bank, asserting that it operates under a flawed premise and has failed to fulfill its intended role as a leading international development institution. He argued that rather than serving the interests of developing nations, the World Bank primarily benefits Western powers, positioning itself as a “West Bank” rather than a true World Bank.
Olukoya noted that the institution was established on July 2, 1944, under the name the International Bank for Reconstruction, with a focus on post-World War II reconstruction in the West. He contended that while its mission has evolved to include poverty alleviation and economic development, the bank’s emphasis on stabilizing global capitalism undermines genuine development efforts in countries like Nigeria.
Highlighting systemic issues, he noted that many loans from the World Bank do not result in tangible benefits for the countries receiving them. Instead, funds often return to Western nations through high interest rates and the export of technology and capital. This cycle of debt, according to the speaker, perpetuates a state of underdevelopment, transforming countries into mere markets for Western capital.
Odukoya further criticized the lack of accountability and transparency in the institution’s operations, suggesting that the World Bank’s role resembles that of a political player rather than a developmental partner. “Its operations are not only unaccountable but also fundamentally flawed,” he added, emphasizing the exclusion of local voices in decision-making processes that affect their futures.”
In his intervention, Comrade Gbenga Komolafe, General Secretary of the Federation of Informal Workers of Nigeria (FIWON), lamented the failure of the states in managing public utilities, saying developments in Nigeria have been on the decline.
Comrade Hassan Taiwo Soweto, National Coordinator of the Education Rights Campaign (ERC) in his contribution, said water is too critical to be left in the hands of the private sector.
According to Soweto, even in the most developed parts of the world, some of these utilities are not left totally to private interest because of their national security significance so that somebody does not poison a dam and undermine the health of the entire country.
