Analysis of the Drivers of Non-revenue Water Loss: The Case of Nigeria
[Thesis]
Njelita, Charles O.
Fain, Michael R.
Capitol Technology University
2019
147 p.
T.D.
Capitol Technology University
2019
Drinking water availability is essential for human survival and is vital for most of our everyday social and economic activities. Water lost due to leaks or other losses after production, termed non-revenue water (NRW) loss, contributes to global water scarcity. Urban water utilities in developing economies are particularly vulnerable to the financial impacts of NRW loss through lost revenues, limited wastewater resources, and expanded operational costs. This quantitative correlational study identified and examined the relationship between management characteristics of Nigerian water utility firms and their NRW loss. Multivariate regression analysis was used to find the relationship between management and physical characteristics of a Nigerian water utility firm and NRW loss. The World Bank IBNET database containing data from Nigeria's 35 public utility water services from 2013-2015 was used as a secondary data source to estimate the NRW loss regression model. The following managerial characteristic variables were found to be influencing NRW loss: (a) size of water utility assets and annual revenue; (b) connection cost of water; (c) repair and maintenance expenses; (d) duration or hours of supply; (e) water loss; (f) monthly water billing or tariff; (g) length of water utility distribution network; and (h) population density supplied water by the utility. These findings demonstrate that managerial and physical characteristics of a water utility may affect NRW loss. Thus, Nigeria water utilities management teams and other external policymakers should use these instrumental variables to locate new water utilities and make existing water utilities more efficient.