Categories: Economy

Enugu Water Producers Association Shutdown Over Production Costs

The Enugu State Chapter of the Association of Table Water Producers (ATWAP) announced a temporary shutdown of water-producing factories due to soaring production costs.

The decision made after an emergency meeting on February 8, 2024 aims to address the financial strain confronting water producers in the state.

Beginning February 12 to February 15, 2024, all table water producers, including those manufacturing sachets and pet bottles, will suspend production.

This hiatus provides an opportunity for the association to tackle the multifaceted challenges impeding the sustainability of its members’ businesses, particularly amidst the harsh economic climate prevailing in Nigeria.

Rising costs of raw materials, including nylon, packaging bags, purifying materials, water procurement, diesel, electricity, transportation, and staff maintenance, have surged by over 500%, rendering production unsustainable.

Furthermore, increased fees imposed by state and local government agencies exacerbate the financial burden on water producers.

Therefore, ATWAP Enugu State Chapter resolved to adjust the retail price of a bag of sachet water (20 sachets) to N300 effective February 16, 2024. This measure aims to stabilize operations and prevent the collapse of water businesses.

The resolution received unanimous support from members, with strict enforcement protocols in place, including penalties of N200,000 per offending truck/driver.

During the shutdown period, water producers are tasked with equipment maintenance while undergoing inspections by the ATWAP Task Force to ensure adherence to operational standards.

The association appeals for cooperation from dealers and consumers, emphasizing the collective effort needed to sustain water production amidst economic adversity.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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