A COST BENEFIT ANALYSIS OF DOMESTIC WATER SUPPLY IN MINNA, NIGER STATE, NIGERIA

Abstract

Domestic water supply is grossly inadequate in Minna, Niger State. While access to potable water is estimated at 45%, supply is limited to only about 20% of the population. A significant water gap therefore exists. This research focuses on a cost-benefit analysis of a proposed intervention to improve supply and increase access to piped water. Data used were collected mainly from secondary sources. A socioeconomic survey was done on . some households in the study area to gather more data. The contingent valuation method was used to determine consumers' willingness to pay for improved access and supply. The two decision criteria used in the CBA were the net present value (NPV) and the benefit cost ratio (BCR). The costs of the intervention included estimations of the full investment and annual operating costs of new piped water supply facilities. The results show that the main contributor to benefits is the tariff revenues that will be generated. The findings showed an NPV of W700.68 million and a BCR of 1.17. These values imply that the proposed intervention is cost-beneficial and profitable. It is recommended that the project be undertaken by the agency responsible.