Home Business [ANALYSIS] Risks in pure water business

[ANALYSIS] Risks in pure water business

by Abbey
sachet water assembly

There is no business with absolutely 0% risks. However, some businesses are quite risky than others. Pure water also referred to as table water has increasingly been popularized especially due to the inability of the government to provide safe and affordable water to the populace.

Pure water or table water has therefore bridged the gap to an extent in providing safe and affordable water for a majority of Nigerian homes. Several companies like Nestle, Faro, May, and Baker in Nigeria are engaged in the pure water business due to the opportunities.

The majority of businesses in the world survive just two years after establishment, this is a business fact that has been proven several times. The pure water production business requires a wide range of regulatory oversight especially by National Food and Drug Administration and Control (NAFDAC).

What are the challenges in the pure water business?

Lack of Adequate water access: most pure water companies have to travel for a very long distance to get quality and hygienic water. This problem has greatly influenced the overall production cost of pure water in Nigeria.

Increase in Price of materials: With the rate of inflation in Nigeria, Pure water producers have complained several times that the production of pure water has gone far above the roof and many of them have been forced to close down their businesses. An increase in prices of commodities such as fuel, nylons, and other materials has greatly influenced the production cost of table water.

Double taxation by the government: This is a sector-wide problem that most stakeholders have been complaining about. The taxation laws in Nigeria are not unified leading to duplicity in tax payments, which eventually led to an increment in the cost of production.

Regulatory Bureaucracy: Pure water business is a very sensitive business that requires strict monitoring, however, most times the regulatory agencies engage in bribery and corruption instead of their constitutionally legal duties.

Vehicle Maintenance: This is one of the most difficult challenge faced by pure water companies, as a pure water company, you can not survive the business without a distribution vehicle. This vehicle will work round the clock and will constantly require maintenance and repairs.

Power: This is not restricted to pure water business alone. No business can also survive in Nigeria today without plans for an alternative power source. Due to the epileptic supply of electricity, you will need to purchase a strong generator that will be capable of running your business.

Is the pure water business profitable?

The pure water business is very profitable in Nigeria. The level of profit you generate from this business at the end of the day depends on how you can substantially reduce your business running cost.

For example, if you sell 1000 bags per day at the rate of 100 Naira per bag, if you do this for 6 days (depends on how many days you decide to work), you will make at least 3.6 million at the end of the month. When you deduct the production cost and other charges you will be left will a profit of about 1 million Naira monthly.

How do you succeed in the pure water business?

Success in this line of business depends on several factors. Below are the steps you need to take to succeed in this line of business.

Choose a good location: One of the most important hallmarks of any business is a good location. Pure water business requires good layout with access roads in a hygienic environment. Also, it is important to locate your factory near residential areas like estates where the demand is higher.

Register a Business Name: Business name registration is one of the most important legal requirements that must be satisfied. It is important to register a business name at the early stage of the business. Check out this post to see the steps by steps guide on how to register a business name in Nigeria.

NAFDAC registration: This is one of the most difficult hurdles intending businesses in this sector face. To produce pure water in Nigeria, your brand, products, and process must be certified by the National Food and Drug Administration and Control (NAFDAC).

Hire staff and pay them well and on time: You are not going to be running this business alone, therefore you will need the services of about 5 staff including a driver and a motor boy. Pay your staff a bit above the industry standard and on time, to motivate them.

What is pure water in Nigeria?

Pure water is a standard term that is used to refer to water that has been certified suitable for drinking after laboratory analysis confirming microbiological quality to be below 45%. In Nigeria, the official regulatory agency that is certified to carry out certification of pure water companies is the National Food and Drug Administration and Control (NAFDAC).

How safe is pure water?

Pure water is water that has been adjudged to be safe for drinking after laboratory tests. In Nigeria, sachet waters require recertification after two years, while bottle water requires certification after five years.

However, most producers of pure water in Nigeria refuse to renew their license with the National Food and Drug Administration and Control (NAFDAC). This attitude has caused many concerned stakeholders to question the quality of pure water that is being produced in Nigeria because most government agencies are more concerned with tax collections than enforcing standards.


  • Abbey

    Abbey Johnson has a Masters degree as an engineer and has over 3 years of teaching and research experience. He is happiest when on a bike and is also interested in electric energy and computer Science.

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