Left: Engr. (Mrs.) Helen O. Taiwo, Executive Director, Operations and Engr. Mukhtaar T. Tijani, MD, Lagos Water Corporation. Right: Adiyan water works
- Lagos Moves to Privatise Key Water Infrastructure as Water Corporation Targets Major Expansion in Water Access for Over 20 Million Residents
The Lagos Water Corporation (LWC) has advanced plans for one of the most ambitious water sector reforms in the history of Lagos, unveiling significant progress on a large-scale Public-Private Partnership (PPP) initiative designed to rehabilitate, upgrade and operate critical water infrastructure across the state.
Details of the initiative were exclusively obtained by Environment Africa Magazine (EAM) following a high-level Directors’ Meeting held this morning, Thursday May 8, 2026 at the Corporation’s headquarters in Ijora, Lagos.
The meeting, chaired by the Managing Director of the Corporation, Engr Mukhtaar Temitope Tijani, reviewed the outcome of the competitive bidding process and concession arrangements targeted at transforming Lagos’ struggling water supply system through private sector participation.
According to the statement, the Corporation received a total of 23 bids across four major project lots following the competitive procurement process, with technical assessments and financial evaluations already completed.
The reform comes amid mounting pressure on Lagos’ water infrastructure, with the Corporation acknowledging that even at full operational capacity, it can currently serve only about 35 percent of households in the state, a stark indicator of the widening water access deficit facing Nigeria’s commercial capital with an estimated population exceeding 20 million residents.
The meeting featured presentations by Titilola Oridami-Bright alongside utilities transaction advisers, Olu Adebo and Dipo Oguntuga of Integrated Business Solutions (IBS)
According to the statement obtained by Environment Africa Magazine, the Corporation has harmonised concession terms into a standardized 20-year tenure structure with a unified five percent royalty framework aimed at ensuring “consistency, transparency and fairness” across the concessions.
Key Highlights from the Directors’ Meeting
- Harmonization of concession agreements into a standardized 20-year tenure structure with a unified 5 percent royalty framework to ensure consistency, transparency and fairness.
- Confirmation that the Corporation, even at full operational capacity, can presently serve only about 35 percent of households in Lagos State, reinforcing the urgency for infrastructure expansion and rehabilitation.
- Establishment of a strong performance framework containing between 10 and 11 Key Performance Indicators (KPIs) to guide private operators and ensure accountability.
- Targets to increase water supply availability to between 60 and 80 percent during the initial implementation phase of the PPP programme.
- Plans to reduce Non-Revenue Water (NRW) losses to below 25 percent within seven to eight years through improved operational efficiency and infrastructure modernization.
- Progressive increase in daily water supply hours to consumers across Lagos State.
- Introduction of financial sustainability measures including cost-reflective tariffs with periodic reviews, foreign exchange protection mechanisms and performance-based incentives to attract credible investors.
- Deployment of robust governance and risk management frameworks aimed at protecting public interest, ensuring service continuity and maintaining regulatory oversight by the Lagos State Waterways Authority and the Ministry of Environment and Water Resources.
The Corporation stated that the PPP initiative is expected to attract significant private sector investment into asset rehabilitation, operational efficiency and expanded access to potable water, particularly in underserved communities.
“It represents a critical milestone in modernizing Lagos State’s water sector through private sector participation while upholding transparency, accountability, and long-term sustainability,” the statement said.
The Corporation further reaffirmed its commitment to maintaining high service standards and ensuring a smooth transition process throughout the concession period.
Negotiations with preferred bidders are expected to commence shortly, with continued collaboration among government agencies, regulators and industry stakeholders.
Environment Africa Magazine further gathered that the Lagos State Government had earlier approved plans to concession seven mini and micro waterworks located in Lekki, Akilo, Victoria Island Annex, Magodo, Abesan, Alexander and Apapa as part of the pilot phase of the broader PPP reform initiative.
The facilities are expected to be concessioned in designated lots to investors with the technical expertise and financial capacity to rehabilitate and sustainably operate the infrastructure.
Industry analysts say the initiative could become one of Nigeria’s most significant urban water infrastructure reforms, particularly as Lagos faces mounting pressure from rapid urbanization, population growth, climate stress and rising demand for potable water services.
If successfully implemented, the reform could substantially improve access to safe drinking water, reduce dependence on informal water vendors and establish a new framework for private sector participation in Nigeria’s water sector.
