Over 25% of table water producers shut down in Ogun
The Association of Table Water Producers of Nigeria (ATWAP), Ogun State Chapter, has revealed that over 25% of its members have ceased operations in the past year due to an increasingly harsh business environment.
Speaking with the News Agency of Nigeria (NAN) on Sunday, ATWAP’s Ogun Chairman, Mr. Babatunde Lawal, highlighted key challenges such as poor power supply, multiple taxation, and a lack of supportive government policies as major factors crippling the industry.
According to Lawal, the operating conditions have forced many producers out of business.
“More than 25% of our members have exited the industry because the environment is not conducive for production,” he stated.
The association initially had over 2,500 registered members, but the number has significantly declined, and Lawal warned that more businesses could shut down if urgent interventions are not made.
High dependence on generators affects profit
One of the major challenges faced by producers is the high cost of running diesel-powered generators due to unreliable power supply.
“Most producers rely heavily on generators, which significantly reduces their profit margins. It has become unbearable for many,” Lawal explained.
He emphasized the importance of ATWAP in protecting the interests of water producers, stating that businesses outside the association find it even harder to survive.
Regulatory and taxation burdens
Lawal also pointed out difficulties in renewing operational licenses, especially with the National Agency for Food and Drug Administration and Control (NAFDAC). He described the licensing process as cumbersome and discouraging for business owners.
Furthermore, multiple taxation policies and regulatory hurdles have added to the burden, making it difficult for producers to stay afloat.
Call for government intervention
The ATWAP chairman warned that the continued shutdown of water production businesses could lead to increased unemployment and economic hardship in Ogun State.
He called on both the federal and Ogun State governments to provide an enabling environment for the industry by addressing taxation concerns, improving power supply, and streamlining regulatory processes to prevent further job losses.
