The Corporate Accountability and Public Participation Africa (CAPPA) has raised concerns over a recently signed Memorandum of Understanding (MoU) between the Lagos State Government and the Belstar/ENKA consortium for water infrastructure rehabilitation and expansion, describing the process as lacking transparency.
CAPPA Executive Director Akinbode Oluwafemi criticized the government for conceiving and finalizing the agreement behind closed doors before simply announcing it to the public.
Akinbode stated that the Lagos State Government owes the citizens and taxpayers a duty of disclosure and accountability noting that scant information made public about the deal raises more questions than answers.
“More than just a utility, water provision is a fundamental public service and essential good. Therefore, any contracts or agreements that affect its delivery, affordability, and quality must be subjected to the highest standards of transparency and public accountability.
“This MoU, which will determine the future of water access for millions of Lagosians, appears to have been signed without public consultation or legislative scrutiny,” Akinbode said.
CAPPA highlighted several unanswered questions about the deal, including the corporate profiles and track records of Belstar Capital and ENKA, the procurement process through which they were selected, and their registration status in Nigeria.
The organisation also questioned the specific projects covered by the vague terms “rehabilitation and expansion,” wondering which waterworks, treatment facilities, and distribution networks would be targeted, and how these projects would impact public access and affordability, especially in the poorest parts of Lagos.
CAPPA noted that the financial worth of the deal remains undisclosed beyond a reference to the engineering, procurement, construction, and finance model being insured by the US International Development Finance Corporation (DFC).
“Furthermore, the involvement of a US government agency should raise alarm given the recent, abrupt pullback of USAID activity in the Lagos water sector and clear pro-corporate priorities of the US on a global level today,” the organization warned.
Other concerns raised included uncertainty about whether the completed waterworks would remain under public ownership and control or be privatized, the role of Lagos Water Corporation in the arrangement, and how the state plans to repay the financing, particularly whether this would lead to increased tariffs and user fees.
CAPPA expressed alarm at the government’s “repeated flirtation with privatisation” despite public resistance and global evidence suggesting that public-private partnerships in the water sector often lead to higher tariffs, inequitable access, and poor service delivery.
The organization called on the Lagos State Government to immediately make the full text of the MoU public, organize a stakeholder forum to explain the scope and implications of the agreement, and halt further moves toward water privatization.
“The solution to Lagos’ water challenges is not to look to corporations with profit motives but to reinvest in public water infrastructure, strengthen public institutions, and embrace participatory governance,” CAPPA said.