Revolving Fund Transforms Rural Water Supply in Yobe State Nigeria

In rural Nigeria, Action Against Hunger (ACF Nigeria), in partnership with the Rural Water Supply and Sanitation Agency (RUWASSA) has pioneered a Revolving Fund which is transforming the water supply landscape in several Local Government Areas (LGAs) within Yobe State. This model has not only provided a sustainable financial support to water utilities, but has also empowered communities grappling with insecurity and malnutrition in a context of severe water scarcity essentially due to climate change.

The challenge of water scarcity

In the semi-arid regions of Nigeria, water is a scarce resource, and the arid climate and sporadic rainfall patterns undermine the dependability of water supplies. During peak farming seasons, water demand surges, placing immense pressure on already limited water infrastructure. The rainy season, while providing some respite, can at times cause damage to water supply infrastructure. According to the 2024 Humanitarian Needs Overview (HNO) for the Water, Sanitation and Hygiene (WASH) sector in Borno, Adamawa and Yobe (BAY) States, 52% of women and girls travel long distances to fetch water, potentially exposing them to personal risks. 60% of children in Yobe State lack access to clean water, making them susceptible to water-borne diseases and malnutrition.

ACF Nigeria has successfully established and restored many water points, yet the challenge remains that these facilities often fall into disrepair, and the local community lacks the resources to operate and maintain them. Consequently, in 2022 ACF Nigeria and RUWASSA decided to establish an innovative Revolving Fund which would enable communities to  borrow money for repairs and repay it within an agreed timeframe.

This approach was designed to guarantee the long-term viability of this infrastructure in order to secure a sustainable access to safe water in rural isolated areas, and therefore contribute to reducing water-borne diseases and prevent undernutrition (ACF overall mandate).

Operational mechanics of the Revolving Fund

The Revolving Fund operates on a simple yet effective principle: communities can apply for loans to repair and maintain their water points and water networks and are responsible for repaying the loan within a set timeframe. This system not only ensures the availability of funds for immediate repairs but also instills a sense of ownership and responsibility within the community.

The Water, Sanitation and Hygiene Committee (WASHCOM), responsible for overseeing the fund, plays a crucial role, together with the Revolving Fund Committee at the Local Government Authority (LGA) level, in ensuring that the funds are utilized appropriately, solving conflicts, and securing that accountability and transparency is maintained. The WASHCOM is thus responsible for the fund’s management and accountable to the community, while also providing technical expertise, supervision and tools to ensure smooth operation.

Case Studies

Three cases illustrate how the fund works in practice, how it improves the overall water access of the population in the different LGAs targeted.

 

First Case: Zangon Kwanwa, Nguru LGA

In May 2024, a windstorm damaged the solar-powered borehole in the community, cutting off their vital water access. In order to recover their service, the community proposed to use the revolving fund to replace the solar panel. The community introduced a repayment plan, by collecting small monthly amounts from households - depending on their degree of vulnerability. Through collective effort, they are currently repaying the NGN 200,000 NGN (U.S. $ 125) loan over a period of 13 months. Initial hesitation was overcome by selecting a trusted management committee, ensuring successful fund management. This shows that it was possible to put in place the revolving fund thanks to its transparency and visibility in combination with community awareness raising sessions which increased the trust and confidence of the community in the project. Learning from communities which have already used the Fund is a recommended communication tool for those who plan to use it.

 

Second case: Dumar Hausawa, Nguru LGA

In June 2024, the community of Dumar Hausawa utilised the revolving fund to expand their water distribution system, creating additional collection points that benefit neighbouring areas. A   repayment plan was designed, aiming to repay the NGN 250,000 NGN (U.S. $ 158 USD) loan within a period of 6-8 months. In this case, the lesson learned is that beyond questions of  operation and maintenance, the Revolving Fund can be applied to improve the density of water points or water delivery points. Communities that benefit from the fund can become excellent ambassadors to new communities.

 

Third Case: Karmashe, Machina LGA  

In April 2024, through the Revolving Fund, the community of Karmashe replaced their  motorised borehole by a more sustainable solar-powered system, overcoming fuel scarcity and mechanical failures. A repayment plan was established, aiming to repay NGN 3,500,000 (U.S. $ 2,200) loan within 9 months. Despite initial concerns and a brief setback due to a change in administration, Karmashe's determination and collaborative spirit have ensured the project's success, serving as an inspiration to other communities. In this case, the lesson that can be drawn is that the fund can improve the economic model of the community water delivery system with a direct and positive impact on the household water bills of the poorest households. The fund can also contribute to climate change mitigation by replacing fossil fuel based energy sources with solar systems. For a country like Nigeria, which is directly impacted by climate change, this example provides a way forward both in economic and environmental terms.

 

 

Progress Review

In reviewing the operation of the revolving fund, ACF, RUWASSA and the communities in question observe that the Revolving Fund in LGAs has had a considerable impact. Not only as it ensured a consistent water supply, but it has also contributed to improved community health and nutrition status and spurred economic activities. The success of the fund is evident in the tangible improvements in the daily lives of the residents.

“Our borehole broke down nine years ago. We were not able to repair it because of financial difficulties and the poor economic situation of the country. Before the rehabilitation of the borehole through the Revolving Fund supported by ACF, we experienced challenges in accessing tap water. The community only relied on two hand-pumped boreholes shared with neighboring communities who also depended on our community water source, especially during the dry season to serve both humans and animals. People would spend more than 30 minutes and trek 500 meters before getting water for daily use” says Habu Magaji, Chairman of Karmashe WASHCOM (June 2024). “It had become a thing of joy for the community. The water point had become a central point for water collection. Children and adults find it easier to fetch water in pails or jerry cans under the watchful eye of the Revolving Fund Committee to ensure the water points are not abused by playful children. They would scold a child mishandling the taps and continue to educate the parents and children on keeping the taps functioning for a sustainable period. The water helps families to access water for domestic purposes at a shorter time interval and allows them more time for other productive or entrepreneurial purposes.”

 

Sustainability and Replication

In the opinion of ACF and RUWASSA, the revolving fund model is a sustainability approach that empowers communities to manage their water resources effectively and efficiently, improve their safe water access and sometimes contributes to climate change mitigation. The project therefore sets a precedent for other States facing similar challenges. There is widespread potential for replication is vast, with the model’s adaptability and community-centred approach making it a viable solution for widespread implementation.

The organisations have drawn several recommendations from their initiative. Firstly, the fund, in order to be replicated, needs to demonstrate its effectiveness and efficiency in a transparent and accessible manner. Impact evaluations, inter-community workshops, communication of funds outcomes are crucial. Secondly, it is essential, in relation to the May 2016 Istanbul Humanitarian Summit commitments on localisation and flexible funding, to encourage donors to fund such innovative projects. The sustainability and even replication capacity of such funds are a positive answer to humanitarian WASH funding crisis, and to the current constraints in funding the development sector. Third, the fund is a way to intervene in rural areas that are often deprived from development plans. Fourthly, it is essential, when implementing and/or replicating such projects, to maintain close relations with local authorities and ministries to avoid a full privatisation of the access to water and to keep the institutions in their overarching roles of duty bearers toward the community. And lastly, the replication of the Revolving Fund should be included in a wider governance of the sector at global level (including water quality standards, etc.) and should propose all the tools possible to ensure the affordability of the service to the poorest (perequation, social model, etc.), in application of Human Right to Water basic principles and normative recommendations.

Conclusion

It is a maxim of the WASH sector that for each dollar invested into it, a fourfold benefit is achieved. Improved access to safely managed water reduces health costs associated with waterborne or water-related diseases and reduces undernutrition and associated costs, reduces work and school absenteeism, and finally increases dignity. The Revolving Fund model, such as the one presented here, has the major advantage to be economically viable, in a global context where access to funding is heavily challenged, especially in rural areas. A Revolving Fund also offers the opportunity to create trust, confidence and build self-esteem in more resilient communities.  It is also a way to propose sustainable and virtuous alternatives to classical models, e.g. in proposing solar systems that will contribute to mitigate climate change.

The Revolving Fund initiative by ACF Nigeria and RUWASSA highlights the transformative power of community-driven solutions. It is a model for the future of water security in Nigeria, showcasing how strategic collaboration and innovative thinking can overcome even the most daunting challenges.