ASSESSMENT OF CUSTOMER’S AFFORDABILITY AND WILLINGNESS-TO-PAY FOR WATER SUPPLY SERVICES IN DUTSE, NORTHERN NIGERIA
Publication Date : 01/02/2013
This study was carried out in Dutse, to determine customers’ willingness to pay for water services, and whether they can afford the charges being proposed. The methodology adopted comprised of collection of relevant data; customer enumeration survey; sample surveys to determine customer’s willingness to pay for water service; and analysis of the data. The study found that customers are not satisfied with the level of water supply service but are willing to pay for improved service. Majority (57%) indicate willingness to pay between N750.00 to N1,500.00/month. Customers with monthly incomes of more than N20,000.00/month spend only 0.5% of their income on water service, whereas those with N10,000.00 – N20,000.00/month spend 0.33%, and those earning N5,000.00 – N10,000.00/month spend 0.67%. The study also found that whereas the cost of water in Dutse is $0.32/month ($1=N156) for single connection and $0.64/month for multiple house connections, the cost of water per m3 stands at $0.01/m3 for single connection and $0.02/m3 for multiple house connections. The major recommendations from the study include the development of a new tariff structure that would ensure improved services that matches the WHO standards with adequate cost recovery and sustainability.
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