The sachet water industry in Ogun State is struggling, with more than 25% of producers shutting down in the past year. The Association of Table Water Producers of Nigeria (ATWAP), Ogun Chapter, attributes this decline to a tough business environment.
Why Are Businesses Closing?
ATWAP chairman, Babatunde Lawal, revealed in an interview with the News Agency of Nigeria (NAN) that many members have left the industry due to harsh operating conditions. Rising costs and multiple challenges have made it difficult for producers to continue operations.
Ogun State has over 2,500 registered sachet water producers, but many have been forced out of business. Lawal pointed to unstable electricity, excessive taxation, and a lack of government support as key issues.
The Impact of Power Supply and High Costs
Most water producers depend on generators because of unreliable power supply. This increases production costs and reduces profits. Lawal explained that without steady electricity, running a pure water business becomes almost impossible.
Challenges with Licensing and Regulations
Renewing operational licenses, especially with the National Agency for Food and Drug Administration and Control (NAFDAC), has also been a major hurdle. Lawal said the process is difficult, discouraging many producers from continuing their businesses.
Economic Consequences
With many factories closing, job losses are rising, putting more families in financial hardship. If the trend continues, more workers will be affected, worsening unemployment in the state.
A Call for Government Support
Lawal urged the federal and state governments to step in and provide a better business environment. He emphasized the need for supportive policies that will help sachet water producers stay in business and prevent further job losses.
The industry plays a crucial role in providing affordable drinking water, and without intervention, more businesses may shut down, affecting both livelihoods and access to clean water in Ogun State.
