Although a prosperous agriculture is a key driver for poverty reduction, and irrigated agriculture contributes to agricultural productivity, the sector has witnessed tremendous decline in Nigeria due to a variety of problems. Financing needs for irrigation are not being currently met. Recurrent costs (operation and maintenance) are offset by user charges and government subsidies. However revenue raised from users is a source of finance for irrigation that is grossly under-explored, although it has the potential for sustainably financing recurrent operations. Current policy direction in the sector is to commercialize public sector River Basins with a view to revitalize Irrigated agriculture. Although it has been noted that farmers have the strongest incentives to ensure sustainability of irrigation systems as their livelihoods depend on them, a major concern about devolution of financing is if it would work where infrastructure is dilapidated and user ability to pay is limited by macro-economic factors. Using a CVM approach, this paper elicits the determinants of willingness to pay for improved irrigation service in two projects in Nigeria, using a tobit model. It provides evidence to support policy in the irrigation sector and informs the link between farmer's socio-economic characteristics and their willingness to pay for irrigation.