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Mobilizing Finances for Sanitation in Nigeria

This article discusses the need for financing and creating markets for promoting sanitation investments in Nigeria, highlighting the current state of sanitation, achievements, and the way forward.

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Mobilizing Finances for Sanitation in Nigeria

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  1. Sanitation Financing in NigeriaEngr. Suleiman H. Adamu. FNSEHonourable Minister of Water Resources Mahatma Gandhi International Sanitation Convention 29th September – 2nd October, 2018

  2. Contents • Nigeria at a glance • Sanitation in Nigeria – Where are we? • The Case for Mobilizing Finances and Creating Markets for Promoting Sanitation Investments • Our Sanitation Financing Approach • Our Achievements • Way Forward NIGERIA

  3. Nigeria at a Glance • Estimated Population of over 191 Million • Nigeria’s GDP in 2017: USD 376 Billion1 • Made up of 36 States and Federal Capital Territory • Basic Sanitation Coverage: (Source: NORM2Survey 2018) • Urban Areas – 49 % • Rural Areas – 35 % • National Average - 42% 1https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?view=map 2 National Outcome Routine Mapping Survey 2018 NIGERIA

  4. Why Sanitation Financing and Marketing? Understanding the Opportunity 82 million people lack access to improved sanitation in Nigeria, large potential role for financial and private sector institutions Safely Managed Sanitation 18.6% 36 million Basic Sanitation 22.9% 44 million Limited Sanitation 15.9% 30 million Open Defecation 24.4% 47 million 31.6% Rural, 11.6% Urban Unimproved Sanitation 18.2% 35 million * Unimproved latrines – NO hygienic separation of human faeces from human contact. Ex. Pit latrines without slabs/platforms Human Feces disposed in the open – fields, forests, bushes, open bodies of water * Improved latrines * Private (not shared) * Functional * Accessible * Improved latrines * Private * Functional * Accessible • Fecal Sludge managed * Improved latrines - hygienic separation of human faeces from human contact * Shared by 2 or more households * Functional * Accessible 24.4% 22.9% 18.2% 18.6% 15.9% Source: WASH NORM 2018 2017 Estimated Population = 191 million Population Data via United Nations WPP NIGERIA

  5. National Targets on Sanitation vs. Current Progress • To achieve 2030 target of Universal Basic Sanitation, Nigeria needs to add 3 million latrines per year between 2019 and 2030 • Against this target, our current delivery of improved latrines is approximately 160,000 per year or 5% of the required pace • Hence, business as usual will not be enough. Nigeria needs to do something drastic! NIGERIA

  6. Access to Financial Institutions and Services • Only 61% of Nigeria’s population has access to some form of financial service via Banks, MFIs, etc. • Until recently, none of these financial institutions offered sanitation related loan products – now 3 MFIs started such services. NIGERIA

  7. Our Approach to Mobilizing Financing Two pronged financing approach:1. Engage financial institutions in loan products for sanitation businesses & households2. Create Community Savings & Credit Groups to provide loans to HH latrines National / State Level Facilitate creation of a revolving fund at the national and state level for lending to MFIs/Banks Sub National Level Partnerships with Rural Financial Institutions to offer sanitation loan products to households Community Level Formation of WASH Savings and Credit Groups (Adashès) Household Level Taking Loans for Improved Toilet Construction NIGERIA

  8. What have we done so far with the identified opportunities? Strategy Progress Next Steps 1. Formation of Community Savings and Credit Groups (Adashès) 1,800 Community Savings Groups formed 8,500 improved toilets constructed Add 2,500 savings groups in 2019 and 70,000 between 2020-2025 2. Partnerships with Rural Financial Institutions MOUs with 45 MFIs to initiate sanitation loans 5 MFIs started Sanitation loans to HHs valued at NGN40 M Partner with CBN and State Governments on revolving funds to provide cheaper financing for MFIs and subsequently to HHs and Toilet Business Owners 3. Creation of National and State Sanitation Revolving funds Three States have initiated the establishment of Sanitation Revolving Funds as window of cheaper financing for MFIs for lending to HHs and TBOs Advocate with development partners and big businesses to initiate sanitation revolving fund Advocacy with Tax Authorities to waive taxes on sanitation products and services NIGERIA

  9. What have we done so far with the identified opportunities? (cont’d) Strategy Progress Next Steps • Official adoption of the ODF Nigeria by 2025 Campaign plan. • The campaign has 3 directions: • Mass media communication. Creating buy-in from decision makers to increase budget allocations for sanitation • Community Behaviour Change • Establishing an ODF Commission/Secretariat with NGN 30 Billion fund to incentivize States to mobilize own matching resources for implementing State ODF plans 4. Implement an ODF campaign by 2025 (launch planned for mid-Nov 2018) H.E. The President to announce the NGN 30 Billion matching fund for sanitation during National launch With the help of partners; such as Swatch Baharat Mission in India, strengthen the ODF Secretariat to deliver the goal of ODF Nigeria by 2025. NIGERIA

  10. Thank You

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