Examination of Water Pricing Policy Adopted by Borno State Water Corporation in Maiduguri and Household’s Willingness to Pay for Water (Published)
This study examined two research questions, (1) the water pricing policy adopted by Borno State water Corporation in Maiduguri and (2) the household’s willingness to pay for water. Two stage sampling procedures were employed in selecting respondents for collection of data through questionnaire, which was administered to respondents out of which 474 questionnaires were used for the study due to their completeness and consistency (181 for staff of Borno state water corporation and while 293 for Households willingness to pay for water). Descriptive statistics and Probit Regression were used to analyze the data. The result of the study revealed that domestic water flat rate was adopted as water pricing policy by Borno state water corporation in Maiduguri. This involves an equal charging water rate to households, and at a very low rate. The second research question result of the study revealed that some socio-economic characteristics of respondents captured in the probit regression influenced household willingness to pay for water which are age, education qualification, household size, income level, household awareness of water problems, time of water availability, perception of respondents on the amount paid for water supply and perception of respondent on the need to improve water supply. The value of R2 indicates that 89% of variation in the willingness to pay for water is explained by the explanatory variables. The researchers recommend that water consumption should be metered so that household heads will pay for what they consumed instead of adopting water flat rate.