Determinants of Urban Household Willingness to Pay for Improved Environmental Sanitation Services in Ibadan

Economic analysis of household demand for improved sanitation services provides essential evidence for designing cost recovery mechanisms and investment programmes that are calibrated to actual payment capacity and preferences. This study analyses the determinants of urban household willingness to pay for improved environmental sanitation services in Ibadan, Oyo State, using contingent valuation methodology. A structured questionnaire incorporating a bidding game elicitation format was administered to 400 households randomly sampled from four residential density zones across Ibadan Metropolitan Area. Willingness to pay estimates were computed using interval data regression, and the determinants of willingness to pay were identified through a Tobit regression model. Results indicate a mean monthly willingness to pay of 2,450 Naira for improved solid waste collection and 1,870 Naira for improved public toilet access among sampled households, representing a significant premium above current formal service charges. Willingness to pay is positively and significantly associated with household income, educational attainment, ownership of residential property, recent flood or disease outbreak experience, and perceptions of current service inadequacy. Distance to the nearest waste collection point is negatively associated with willingness to pay, consistent with revealed preference evidence of inconvenience costs. The study identifies a feasible cost recovery window for a combined sanitation improvement programme, provided that service delivery is structured to reduce collection distance for low-income households. Recommendations address progressive tariff design, targeted subsidy instruments for the lowest income quintile, and integration of community satisfaction monitoring into service contracts. Keywords: willingness to pay, environmental sanitation, contingent valuation, Ibadan, household demand.