Measuring willingness to pay for improved urban water supply in Offa City, Kwara State, Nigeria

摘要

This paper is a study on financial sustainability of water supply service to the city of Offa, in KwaranState, Nigeria. The value consumers place on water supply and the willingness-to-pay (WTP) fornimproved service and the factors that influence their preferences were determined using anneconometric model. The WTP was estimated using a double-bounded dichotomous model and thenmean WTP was found to be 70% higher than the current tariff, while the expected monthlynrevenue from domestic customers alone was N= 21 million ($175,000)1. The study revealed that thenconsumers were not satisfied with the level of service but they were willing to pay for improvednservice and even support reforms that will bring about this change. The mean WTP in practicalnterms gives social benefit of a policy for the offered service for the affected population. The studynoutcome shows that the high WTP is a good incentive for private sector involvement in thenmanagement of urban water supply.