Reports from UNICEF indicates that Nigeria has the second-highest rate of open defecation worldwide, which means there are about 10 million toilets that need to be built in the country, creating an untapped market of about $1 billion just for constructing toilets alone.
These insights were shared by Jolly Ann Maulit, WASH manager at UNICEF Nigeria, who noted that this fast-growing toilet economy market sits firmly within the water, sanitation and hygiene (WASH) sector within the circular, highlighting its economic as well as public health importance.
“A study conducted in Nigeria by the Toilet Board Coalition found that the toilet economy, covering everything from construction to the collection and conversion of sludge into useful by-products such as manure, biogas and animal feed is already worth over N12 billion. With population growth, this market is projected to expand significantly over time, reaching as much as $15 billion.
“At UNICEF, we have been exploring how young people can leverage opportunities within the sanitation and water economies. The scale of the opportunity is significant. Nigeria has the second-highest rate of open defecation globally, after India. This means that roughly 10 million toilets still need to be built nationwide. Households are willing to pay between $35 and over $100 for a toilet, which translates into an untapped market of about $1 billion for toilet construction alone. This does not include toilets needed in schools, healthcare facilities, motor parks and markets, many of which can operate on a pay-per-use basis”.
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“…about 56 per cent of water facilities in Nigeria are currently non-functional. This creates a clear opportunity for private operators to rehabilitate, repair and sustainably manage these systems.
Maulit shared specific examples of how these opportunities are being realised on the ground:
“We are already seeing practical examples of how this can work. In Soko District, for instance, we supported a private operator, Ali Sambo, in Dangushaniel local government area. Through UNICEF facilitation, an MOU was signed between him, the state government and the community. He now runs a pay-for-use water facility where residents pay N10 per jerry can. The scheme serves more than 1,000 people and generates about N60,000 per month”.
“A Bauchi State entrepreneur, who runs a pay-for-use water facility, and Idiza in Bauchi State. He trained as a toilet business owner (TBO) and now builds over 55 household toilets per month, employing two full-time staff and over 30 local masons. These businesses provide incomes that are definitely higher than the typical Nigerian average”, she notes.
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In Benue State, David Ogbu, founder of Difyco & Bros Enterprises, a TBO has expanded his operations across Daudu and Otese since launching the business in 2018. The company now employs more than 20 people, including skilled masons and field agents. Each toilet built generates modest but steady income, underscoring the sector’s commercial potential.
A similar model is taking shape in Yobe State, where Ahmad Kukuri Dawuwa has grown his sanitation enterprise across seven local government areas since 2016. He has 20 employees in his workforce and others who receive vocational training alongside paid work.
Together, these cases illustrate how small-scale sanitation enterprises can deliver economic value, highlighting the sector’s potential as a tool for both livelihoods and recovery.
To ensure these businesses can scale, Maulit detailed new financial frameworks being developed: “We are working on an Africa-wide sanitation finance facility where we’re going to pool funds from investors and donors. This will be used to de-risk the capital of commercial and microfinance banks so they can provide capital at a lower cost to sanitation businesses and households.”
