Abstract
The aim of this paper is to demonstrate the implication of infrastructure condition to urban neighbourhood sustainability and how a demand driven approach can enhance willingness to pay for service improvement. The study is a survey research carried out through the distribution of structured questionnaires to 1040 households in 8 metropolitan local government areas namely; Alimosho, Apapa, Eti-osa, Ikeja, Shomolu, Mushin, Kosofe and Surulere. The questionnaire was designed to elicit information on households’ preferences and demand for urban infrastructure including willingness to pay and averting expenditure. Findings from the study indicated that different areas of the city have preferences for different infrastructure both in specific types and service option, and that demand driven provision will enhance WTP and has implication to neighbourhood sustainability. It will also encourage cost recovery and public sector participation in infrastructure provision.Key words: Demand side management, infrastructure, sustainability, urban neighbourhood, willingness to pay.
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