The Association of Table Water Producers of Nigeria (ATWAP), Ogun State Chapter, has disclosed that more than 25% of its members have shut down operations in the past year due to an increasingly harsh business environment.
Speaking in an interview with the News Agency of Nigeria (NAN) on Sunday, ATWAP’s Ogun Chairman, Mr. Babatunde Lawal, highlighted the challenges including poor power supply, multiple taxes, and a lack of supportive government policies, among others.
He said the challenging operating conditions had driven many water producers out of business.
“More than 25% of our members have exited the industry because the environment is not conducive for production,” Lawal stated.
He noted that the association had over 2,500 registered members engaged in water production across the state but noted that the number has declined and could further decline if urgent interventions were not made.
Most producers rely on generators
He said the heavy reliance on diesel generators by tablewater producers in the state reduces their profit margins, arguing that it has become unbearable for many.
“Most producers rely heavily on generators, which significantly reduces their profit margins.
“In addition, no water producer can survive these numerous challenges without being part of the association because we protect our members’ interests,” he said.
Other challenges
He also highlighted difficulties in renewing operational licenses, particularly with the National Agency for Food and Drug Administration and Control (NAFDAC), describing the process as cumbersome for members.
The ATWAP chairman warned that the continued shutdown of water production businesses could lead to increased unemployment and economic hardship for many families in the state.
He called on both the federal and Ogun State governments to provide an enabling environment for the industry to thrive, urging authorities to address taxation issues, improve power supply, and streamline regulatory processes to prevent further job losses.
What you should know
- According to the Manufacturers Association of Nigeria, poor power supply and incessant hikes in electricity tariffs are major hindrances to the manufacturing sector. MAN said electricity is critical to production processes in the manufacturing sector and the lack of energy security impedes Nigeria’s industrial growth.
- According to the Business Confidence Monitor report compiled by the Nigeria Economic Summit Group and Stanbic IBTC, Nigeria’s manufacturing sector recorded a poor business performance in January 2025. The sector scored -0.66 on the Business Confidence Monitor (BCM) Index for January 2025.
- On regulatory challenges, Nairametrics reported that the National Agency for Food and Drug Administration and Control (NAFDAC) sealed two unregistered water-packaging companies in the Ota area of Ogun State, last year. According to the agency, they were operating without approval.
