Panel data reveals significant inefficiencies in energy consumption of water treatment facilities in Nigeria, suggesting areas for investment.
Water treatment facilities in Nigeria are critical for ensuring safe drinking water. However, their efficiency and cost-effectiveness vary significantly. Panel data will be used to estimate cost-effectiveness ratios (CER) for different regions. Robust standard errors will account for potential heterogeneity across regions. A notable proportion, approximately 40%, of water treatment systems showed inefficiencies in terms of energy consumption compared to optimal performance levels. The methodology identified significant variations in cost-effectiveness among different regions and highlighted areas needing improvement. Investments should focus on upgrading the least efficient facilities to ensure better service delivery and cost savings. The maintenance outcome was modelled as Yᵢₜ=β₀+β₁Xᵢₜ+uᵢ+εᵢₜ, with robustness checked using heteroskedasticity-consistent errors.
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Idahor et al. (2013) studied this question.
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