Friday, November 22, 2024

‘Pure water’ price goes up and producers are shutting factories

A sachet of water now sells at N30 in many parts of the federal capital.

Producers of table water in Abuja have closed their factories for over a week, triggering scarcity of drinking water in the capital city as they introduce new rates for sachet water, commonly called “pure water”, Pluboard has learnt.

– Why this matters

Without functioning running water, millions of Nigerians rely on “pure water” for daily hydration needs, feeding a market that is estimated to be worth billions of naira.

A 50cl bag of water sold for N10 for years before rising to N20 in 2021 as Nigeria fell under intense inflationary pressures with prices of goods and services reaching highest levels in years. Inflation rose to 21.82% in January – the highest the highest since September 2005.

Water sellers said they were raising their prices too as cost of production rises amidst severe cash crunch that has badly affected businesses and lives since October 2022.

– A key point to note

A sachet of water now sells at N30 in many parts of the federal capital. A bag containing 20 pieces previously sold to retailers at N160, now goes for N200 at factories, marketers told Pluboard.

One retailer said producers now supply water to them at N200 and they have to sell at least N250. The retailer said she had not received supplies for about a week until Tuesday morning as producers were on “strike”. “One supplier sneaked in today to sell me just 10 bags today and was hurrying so the task force will not stop him,” she said.

– Learn more

Several traders and show owners confirmed they had not received supplies for days.

“We have been on strike since last Friday,” said an official at Nextar Limited, which has a water plant and bakery in Kubwa, Abuja. “The problem is the issue of price, and we are using the opportunity to do maintenance on our plant.”

Mohammed Akwuh, chairman of the Association of Table Water Producers Association of Nigeria, told Pluboard members of the group were introducing new prices but said he would not refer to lack of supplies as “strike”.

​”We are not going on strike, we can never go on strike,” Mr Akwuh said. “We are increasing the price of goods because of the increase in the cost of production. The cost of maintaining our vehicles is expensive, and the cost of electricity tariff is high. Carrying water is heavy, we need to keep maintaining the car.”


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