EFFECTIVENESS OF PRICING POLICY IN HOUSEHOLDS’ WATER DEMAND MANAGEMENT IN KADUNA STATE: A CASE STUDY OF SABONGARI LOCAL GOVERNMENT AREA.

EFFECTIVENESS OF PRICING POLICY IN HOUSEHOLDS’ WATER DEMAND MANAGEMENT IN KADUNA STATE: A CASE STUDY OF SABONGARI LOCAL GOVERNMENT AREA.

Abstract:

The effectiveness of water supply policies used in the past is nowadays questionable since the gap between water supply and water demand is increasing despite increase in water supply. With increasing demand for water primarily as a result of increase in population, urbanization and economic growth, attention was shifted from supply management to demand management policies. Water Demand Management aims at minimizing wastage of water and ensuring efficient water use through pricing and non-pricing policies. In spite of the importance of water supply for domestic, industrial, agricultural and other uses and in spite also of the intensifying scarcity of water, empirical researches on water demand and effectiveness of water demand management tools are very rare in developing countries like Nigeria. The States and National governments have introduced policies aimed at reducing the gap between water supply and water demand but the situation has not shown any improvement. This study attempted empirical analysis of the effectiveness of pricing policy in households’ water demand management in Kaduna State using Sabon Gari Local Government as a case study. Various pricing policies were reviewed and according to the theory of price determination of both economic and public goods, efficient pricing policy encourages efficient use of water. By the use of primary source of data collection, through administration of questionnaires to water users and staff of the Water Boards, it was revealed that the current pricing policy of the State does not lead to water use efficiency nor does it cover operation and maintenance costs, a situation that led to a serious shortage of funds for proper operation of the water supply institution. The study also found variations in quantity of water used among households based on their income levels and households’ size. The study therefore, concluded that the current pricing policy is inefficient. Consumers of the public water supply service indicated willingness to pay for improved service contingent upon increase in water tariff. However, the problems of water supply sector in Kaduna State are not only with the pricing policy but also with poor condition of service and weak policy implementation to mention just a few. This study recommends that review of the pricing policy and other policies should be carried out to address the problems of the water sector. The review should take into consideration demand assessment on the heterogeneous category of the water users by adopting a user focused approach

EFFECTIVENESS OF PRICING POLICY IN HOUSEHOLDS’ WATER DEMAND MANAGEMENT IN KADUNA STATE: A CASE STUDY OF SABONGARI LOCAL GOVERNMENT AREA.