Challenging times ahead in Nigeria

The tender process for the contract to run water services for the Lagos State Water Corporation (LSWC) is starting to trigger interest in the Nigerian water sector as a whole. A federal bill permitting widespread private involvement in the sector is completing its passage through the legislature and a series of other contracts may follow the Lagos concession. However, any foreign private companies interested in Nigeria will face a multitude of challenges as well as opportunities.

The federal government is a keen advocate of privatisation and private sector involvement in many parts of the economy, and under the leadership of President Olusegun Obasanjo, many moribund parastatals have been, or are in the process of being, sold off.

However, the Ministry of Water Resources is only responsible for the supply of bulk water for agricultural, domestic and ...

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