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Controversial water bill delays release of $700 million World Bank loan to Nigeria 

Sami Tunji by Sami Tunji
March 25, 2024
in Economy, Public Debt
World Bank, Tanzania
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Nigeria Sustainable Urban and Rural Water Supply, Sanitation and Hygiene Program-for-Results (SURWASH Programme), underpinned by a $700 million loan from the World Bank, faces significant delays due to legislative gridlock.

The heart of the issue lies in the stalled passage of the contentious water bill, essential for unlocking further funds from the loan aimed at enhancing water, sanitation, and hygiene services across the country. 

So far, only about 12% of the loan amounting to $80.35 million has been disbursed to Nigeria, with a remaining $577.33 million awaiting the fulfilment of certain conditions tied to the loan project. 

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About the Programme 

The SURWASH Programme was initiated with a development objective to expand access to water and sanitation services while fortifying sector institutions. 

Despite the project’s forward movement, with Programme Year 2 results submitted on January 13, 2024, and currently under review by an Independent Verification Agent, the delay in legislative action is a stumbling block.  

The execution of the SURWASH Program, which saw approval on May 25, 2021, and is expected to close by June 30, 2027, is notably contingent on specific Disbursement Linked Indicators (DLIs). 

A pivotal DLI is the establishment of the National WASH Fund (DLI1), envisioned within the water bill introduced during Muhammadu Buhari’s presidency. 

The failure to pass this bill before the political transition in May 2023 threatens to delay the establishment of the National WASH Fund, consequently impacting the release of the World Bank’s loan. 

A document from the World Bank read: 

  • “The push to get the water bill passed by the National Assembly (NASS) before the political transition which happened in May 2023 did not materialize. 
  • “This may result in a delay in establishing the National WASH fund as it is part of the proposed water bill. DLI 1 under the SURWASH Program is related to the National WASH Fund, so disbursements will be impacted. 
  • “The Ministry plans to review and present again to the new National Assembly the bill after holding stakeholder consultative fora across the country.” 

What you should know 

The National Water Resources Bill, initially introduced in April 2017 during former president Muhammadu Buhari’s first term, aimed to centralize the control of water resources under the federal government.

Despite passing in the House of Representatives, the bill met its first major hurdle in the Senate.

Referred to the Senate Committee on Water Resources, it faltered as the 8th Assembly concluded in June 2019 without a report on the bill, amidst widespread controversy. 

In a renewed effort, the bill resurfaced on July 7, 2020, re-gazetted and reintroduced in the 9th House of Representatives by Hon. Sada Soli (APC: Katsina).

It successfully passed the House and was sent to the Senate for concurrence. However, the Senate’s rejection led to another attempt to pass the bill in the House. 

The bill’s proposition to shift control of water resources from states to the federal level sparked significant backlash from governors, stakeholders, and the media. Some of the controversial aspects of the bill included: 

  • Clause 13 advocated for integrated management of water resources, encompassing everything from land and water resources to marine environments, emphasizing a coordinated approach that many feared would limit state authority. 
  • Section 98 introduced licensing requirements for water use, while Section 120 mandated a driller’s permit for private boreholes, and Section 107 highlighted the possibility of license cancellation for non-use. 
  • Section 2(1) declared all water resources a common good, further stirring debate over federal versus state control. 
  • Section 104 detailed emergency powers during water shortages, allowing the government to regulate water use beyond domestic needs. 

These clauses, among others, led to a national uproar, with many calling for a thorough review of the bill. 

Recommended reading: Nigeria seeks closing date extension for $500 million COVID-19 loans from World Bank 

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Tags: NASSSURWASH ProgrammeWorld Bank Loan
Sami Tunji

Sami Tunji

Sami Tunji is a writer, financial analyst, researcher, and literary enthusiast. Aside from having expertise in various forms of writing (creative, research, and business writing), he is passionate about socio-economic research, financial literacy, and human development. Currently, he is a financial analyst at Nairametrics and an African Liberty Writing Fellow 2023/2024.

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