Feasibility of Hybrid Water Tariff Model for Sustainable Cost Recovery at a Federal Tertiary Institution in Akure, Ondo State, Nigeria

Sustainably delivering water supply has become increasingly challenging especially for universities operating under resource-limited conditions where water scarcity is compounded by financial constraints. This study assessed a hybrid pricing system to collect ₦994,023,360 in Priced Bill of Engineering Measurement (BEME) costs for the upgraded water infrastructure at Federal University of Technology Akure (FUTA). For the study, data from 421 volunteers, the majority of whom were students aged 18–25, were collected using statistical tools like regression and ANOVA. Water consumption was calculated to be 80 litres a day and household water spending tended to be around ₦1000–2000 each month. If 20,000 users pay this projected monthly tariff, it could lead to earned income of ₦165.5 million yearly which is greater than the annual BEME cost by ₦27.5 million. According to regression analysis (R² = 0.654), the main predictors of WTP were fairness of pricing (β = 0.895, p < 0.001), income (β = 0.229, p = 0.002), followed by the negative effect of access difficulty (β = -0.053, p = 0.044). The results of ANOVA showed that most customers (67.2%) noticed a significant difference and preferred flat-rate tariffs (F = 180.345, p < 0.001). Transparency, subsidies and getting involved stakeholders were highlighted as vital for better implementation. The FUTA water costs amounting to ₦515,100,000 annually supports sustainability alongside equity through its pricing system for the 59.4% population dependent on university water and provides an excellent model for institutions across developing nations.