The Association of Pure Water Producers has expressed concerns over the skyrocketing prices of pure water sachets, warning that the cost may surge to N100 if urgent measures are not taken.
According to the association, the sharp increase in the cost of production materials has dealt a severe blow to their operations.
In December 2023, materials that were purchased for N1,100 per kilogram have now surged to a staggering N3,600 to N3,700 per kilogram. This astronomical rise, coupled with the exorbitant pricing strategies of nylon producers, is placing an unbearable burden on pure water producers.
A spokesperson for the association lamented, “The frequency at which nylon producers increase prices is outrageous. Increments of N550,000 can occur three times within one week.
This leaves us with limited options as we grapple with the rising costs of production materials, not to mention the escalating expenses associated with treatment.”
The spokesperson further explained the financial challenges faced by pure water producers, noting that many resort to external funding or borrowed capital.
Banks, wary of the industry’s financial instability, are reluctant to grant loans to pure water sachet producing companies.
“This business is highly addictive. The passion behind it makes it difficult for us to leave, even when running at a loss.
We want Nigerians to understand that every water producer is facing the same predicament. With costs escalating and loans hard to come by, we find ourselves at a crossroads,” added the spokesperson.
Drawing attention to the alarming trend, the association emphasised that if the situation persists, pure water sachets might be priced at an unprecedented N100 per sachet. The association stressed its reluctance in such an escalation, expressing the desire to keep prices affordable for Nigerians.
Reflecting on the past, the spokesperson pointed out the stark contrast, stating, “When diesel was priced at N220 per litre, a sachet of pure water was N10. Now, with diesel costs soaring to N1700 per litre or more, the ratio is glaring.”
“We urge Nigerians to bear with us as we navigate these challenging times. We don’t want pure water sachets to become unaffordable or leave the system.”
As pure water producers grapple with financial constraints and production challenges, the looming threat of increased prices raises concerns about the accessibility of this essential commodity for ordinary Nigerians.
The industry seeks understanding and support from the public as it strives to find solutions to these pressing issues.