Abstract
Purpose: This study examined the investment potential inherent in private sector participation (PS
P) in water infrastructure by evaluating users' willingness to pay for the private provision of water i
nfrastructure in Lagos, Nigeria. Specifically, the paper evaluated users’ accessibility and satisfactio
n with existing water supply options and analyzed users' willingness to pay for the benefits of PSP i
n water infrastructure provision. The study also assessed the relationship between demographic vari
ables and users' willingness to pay and the cost premiums users are willing to pay.
Design/Methodology/Approach: The study collected primary data using a closed-ended questionn
aire. With a focus on three local government areas in Lagos, 296, 172, and 57 buildings were select
ed in Ikeja, Surulere, and Shomolu respectively through multistage sampling. Selecting one adult re
sident in each building, a total of 525 questionnaires were administered, while 450 (85.71%) questi
onnaires were retrieved and analyzed. Descriptive and inferential statistical techniques were used f
or data analysis.
Findings: The results showed that the respondents represent mostly married, educated, and activemiddle-
income earners. While respondents were mostly satisfied with the borehole water source, th
e gap analysis between the users’ satisfaction and accessibility showed a negative mean difference,
revealing a low level of satisfaction with the existing water supply options. The respondents’ willin
gness to pay for private water provision gave a mean value of 3.37. The users’ willingness to pay fo
r the benefits showed better quality of service to consumers (3.84), transparency in charges (3.78), i
mproved service reliability and continuity (3.77), and increase in employment (3.74) were more hig
hly rated than other benefits. This suggests a preference to pay for benefits directly related to the us
ers. Only about 50% of the users are willing to pay a premium of not more than N5 per gallon of w
ater.
Practical implications: Understanding users’ willingness to pay for PSP in water supply could hel
p achieve targets such as the Millennium Development Goals. Users need to be willing to bear a pa
rt of the costs for sustainable water supply to aid private investment in water infrastructure in emer
ging markets.
Originality/Value: The study provided information on users’ willingness to pay PSP in water infra
structure provision in Lagos Nigeria. This is to establish the potential for private sector investment i
n water infrastructure and enhance decision-making in private sector provision of water infrastructu
re.