The Ogun State chapter of the Association of Table Water Producers of Nigeria has raised concerns over the dwindling number of water production businesses in the state, revealing that more than a quarter of its members have shut down operations within the past year.
ATWAP chairman, Babatunde Lawal, shared this development in an interview with the News Agency of Nigeria in Ota, Ogun State.
He attributed the mass exit to an increasingly unfavorable business environment, which has forced many producers to abandon the trade.
“More than 25 per cent of our members have exited the industry because the environment is not conducive for production,” Lawal stated.
The association, which boasts over 2,500 registered members engaged in water production across Ogun, has been grappling with several industry-wide challenges.
These include erratic power supply, multiple taxation, and a lack of government-backed policies to support growth.
“Most producers rely heavily on generators, which significantly reduces their profit margins,” Lawal explained.
He further emphasized the importance of membership in the association, noting that independent producers face greater risks without the protection and support ATWAP provides.
The chairman also highlighted the difficulty in renewing operational licenses, especially with the National Agency for Food and Drug Administration and Control, describing the process as unnecessarily cumbersome for members.
With more businesses shutting down, Lawal warned of potential economic consequences, including rising unemployment and financial hardship for affected families.
He called on both federal and state governments to implement policies that would foster a more supportive environment for water producers, thereby safeguarding jobs and sustaining the industry.
