What we have as “pure water” business in Nigeria today started as ‘house wife’s business for the low class women in society. Many mothers who could afford a Refrigerator used to make the poor man’s ‘ice cream’- the basic ingredient were just; water, sugar (or saccharin), and colouring, and over time they added water tied in white ‘santana’ polythene to their wares. That was the birth of sachet /packaged water a.k.a ‘pure water’. The rest is history.
The market for packaged water; bottled and sachet (popularly called “pure water”) is tremendously large today and have not shown any sign of slowing down. The business seems to have taken deep roots in Nigeria since it began in the early nineties, and has continued to be a viable source of income and employment for many people.
Why the increase in demand?
Recent research has shown that more investors are needed in this industry to meet the demands in the country. The World Health Organization/United Nations Children’s Fund Joint Monitoring Program, in its 2012 progress report on drinking water and sanitation, has ranked Nigeria third behind China and India on the list of countries with the largest population without access to improved drinking water.
The WHO/UNICEF Joint Monitoring Program report which covered between 1990 and the end of 2010, noted that about 66 million Nigerians lacked access to drinking water, while 34 million, about 20 per cent of the country’s population practiced open defecation.
It is not untrue to say that the days when freshly treated portable water flowed from our public taps is a story you can only read from history texts. In those days water taps were seen in our major streets, and almost everyone had access to good water. That is lacking today.
Population explosion coupled with the increasing cost of treatment and the age of buried water pipelines (which are corroding) have made continuous supply of good water by government doubtful. Most people in urban or rural areas depend on public or personally dug boreholes for water, while a large portion of rural dwellers resort to the streams and rivers (sometimes polluted) for water. In some communities these are even non-existent.
This has rightly created the need for private organizations and individual to go into water production for homes, offices, industries, social activities and other commercial purposes.
The major source of drinking water in Nigeria right now is packaged water (bottled or sachet). With the increasing population and the unwillingness of Governments to salvage the situation; the water packaging industry has come to stay and there is no sign of slowing down anytime soon. The demand will keep increasing.
Recently, the Minister of Water Resources, Mrs. Sarah Ochekpe, decried the low access to potable water in Nigeria, stating that the Federal Government was collaborating with stakeholders to increase access to water supply in the country. You could become one of the stakeholders.
The Water Business; Packaging:
Portable water in Nigeria comes in different packages; shapes and sizes. Some come in sachet, PET bottles and even in breakable or glass bottles. Water in sachet is popularly though wrongly called “pure water”.
Portable water (the right name) is water treated and fit for human consumption.
Establishing the Plant: What is involved?
The business can be located in any part of Nigeria. The water supply must be from a spring, borehole or tap. This is NAFDAC requirement. Other necessities include chemical (chlorine), filters, packaging materials like the bottles or polythene rolls (for the sachet) can be obtained locally.
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| filtering Unit |
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| sachet sealing machine |
The machines required for this project include a complete set of water treatment plant which can also be built locally or procured, automated bottling machines as well as shrink wrapping machine. Details on sources, prices, installation and test running will be embodied in the comprehensive feasibility studies for those who are interested.
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| Bottled water distiller |
The actual production process is a combination of aeration, treatment filtration, and chlorination, bottling and packaging.
Where is the market?
There is a huge ever tasty market for water in Nigeria. These includes; Distributors, Households, Super markets, Hospitals, Restaurants, Hotels, Clubs, Schools and the general public.
Products can also be exported to neighboring African countries. The earlier cited UN/UNICEF report also noted that sub-Saharan Africa accounted for more than 40 per cent of the global population without access to improved drinking water, adding that the region was not on track for meeting the drinking water MDG target.
However, some countries such as Malawi, Burkina Faso, Ghana, Namibia, and Gambia, were said to have already met the target, while Liberia is on track to meet it. What about the others?
Research has shown that despite the growing number of producers of the bottled water, the market is still receptive with demand gap widening every day.
You must not own a plant or produce to be part of the market. If you own a shop, you can benefit immensely from this market, especially in a densely populated area. All you need to do is ask for good discount from the producers if you buy in good quantity or better still turn your shop into a depot/distributor for them so other shop owners around you come to buy. That way you are reducing the cost of opening a depot around you and sharing that cost with them. A wise businessman will not turn you down and will definitely give you good discount. A jobless youth can also make money this way.
Additional advantage
The same machines can be used to produce other fast money making foods such as fruit juice, bottled/sachet Soya milk, yoghurt or even bottled wine. This takes away the cost of setting up a different plant for that.
Estimated financial implication
The level or size of the plant/project depends on how much the investor has earmarked for the project. A modern plant will require a large sum of money to set up. However, below is an estimate of what is required to set up a sizable plant and initial cost of startup. All in Naira.
Preliminary expenses – 150, 000
Accommodation/building – 1,500, 000
Plants and Machinery – 4, 700, 000
Borehole and Water accessories – 500, 000
Utilities – 1, 200, 000
Motor vehicles – 1, 500, 000
Furniture, fixtures and fittings – 300, 000
Legal documents and approval (NAFDAC) – 300, 000
Working capital – 3, 500, 000
Total – 13, 650, 000
References:
Uba Godwin (2006), Daily Sun: March 23, 2006
Punch.com, 23rd August 2012
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