Why PSP operators increased waste bills, by LAWMA chief

LAGOS State government has explained the rationale behind the recent increase in waste bills and ongoing efforts to recover debts owed to Public Sector Participation ( PSP) operators.

PSPS waste managers have continued to increase the cost of waste bills by an average of 100 per cent across the metropolis within months’ intervals, from N750 to N1, 800, then N2, 000, which have worsened living conditions and made it difficult for households to manage waste and pay their bills. In some areas, such as Ikoyi, Lekki Pennisula and Victoria Island, the bills are higher.

The Managing Director, Lagos Waste Management Authority ( LAWMA), Dr Muyiwa Gbadegesin told The Guardian that the increase was necessitated by the prevailing economic headwinds, especially the diesel cost, general overheads, fleet maintenance and spare parts replacement amongst other related costs.

However, he emphasised that the tariff review process was overseen by the regulatory authority to ensure that the burden of the increased costs would not solely fall on the public. Gbadegesin clarified that tariff reviews were based on observed increases in waste generation volume and the economic cost of service provisioning by PSP operators. He stressed that any rate changes must be justified to stakeholders and aligned with LAWMA'S considerations.

“However, no PSP could unilaterally impose any reviewed rate to tenements without establishing the relevant rationale to the neither stakeholders nor ultra vires LAWMA’S consideration and justifications for such review as the case may be,” he said.

Despite the economic challenges, Gbadegesin assured that LAWMA remained committed to providing subsidised waste management services. However, the cost of operations, including diesel, tyre purchases, and truck servicing, would be periodically assessed to ensure PSP operators could break even while maintaining affordability for residents.

Regarding the outstanding debts owed to PSP operators, Gbadegesin explained that the amount varied depending on the respective operators and their franchised areas. He noted that LAWMA had undertaken extensive reconciliation efforts, including meetings with Community Development Associations ( CDAS), Community Development Committees ( CDCS), local government authorities, residents' associations, and other stakeholders to address such issues.

Gbadegesin reiterated

LAWMA'S dedication to resolving tariff- related issues, ensuring fair pricing, and mitigating indiscriminate dumping to maintain a clean and sustainable environment for all Lagosians.

According to him, LAWMA has deployed necessary resources and personnel to meditate on tariff related issues with the public and facilitates amicable resolutions between contending parties on tariff concerns and affordability to abreast the resultant issues of indiscriminate dumping, flight tipping from such tenements.