Over 25% of table water producers shut down in Ogun over multiple taxes, poor power supply – ATWAP  

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. 

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.