{"id":18048,"date":"2022-04-11T18:09:58","date_gmt":"2022-04-11T18:09:58","guid":{"rendered":"https:\/\/www.withinnigeria.com\/broadnews\/?p=18048"},"modified":"2022-04-11T18:09:58","modified_gmt":"2022-04-11T18:09:58","slug":"micro-economic-implications-of-selling-sachet-water-at-n20","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/11\/micro-economic-implications-of-selling-sachet-water-at-n20\/","title":{"rendered":"Micro economic implications of selling sachet water at N20"},"content":{"rendered":"<p>A current micro economic uncertainty the common man is facing is the 100 per cent increase in the price of sachet water from N10 to N20.<\/p>\n<p>The Association of Table Water Producers (ATWAP) in Enugu State recently announced an increase in the price of a bag of sachet <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/09\/14-year-old-boy-drowns-in-open-water-in-kano-fire-service\/\">water<\/a> from N160 to N200.\u00a0Each bag contains 20 sachets.<\/p>\n<p>By simple economics, this means that production cost of each of the 20 sachets is N10. This calculation excludes extra cost of logistics and labour to move the sachet water from the factory to the retail points.<\/p>\n<p>ATWAP\u2019s president, Mrs Clementina Ative, explained inflation and soaring <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/03\/09\/nde-trains-50-women-in-spices-and-seasoning-production-in-bayelsa\/\">production<\/a> costs compelled the association to increase the price.<\/p>\n<p>She said the price increase was to enable members to produce and give quality water to Nigerians instead of looking for ways of cutting corners, which might result in quackery and supply unwholesome water.<\/p>\n<p>Speaking also on the increase, ATWAP Chairman in Enugu State, Mr Blessed Okonkwo, said that the old prices of N100 and N160 were no longer feasible in the face of rising cost of materials for water production.<\/p>\n<p>Most devastating to <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/07\/get-yourself-involved-in-legitimate-business-custom-boss-urges-smugglers\/\">business<\/a>, he explained, is diesel currently selling at minimum of N700 per litre.<\/p>\n<p>\u201cThe cost of materials, equipment maintenance and production generally keep going up every day.<\/p>\n<p>\u201cIn order to satisfy our numerous customers and ensure they have drinkable water on their table, the only option open to us is to increase the price,\u2019\u2019 Okonkwo said.<\/p>\n<p>He added that procurement of water from borehole operators at 9th Mile Corner near Enugu had also become very tasking in view of the rising cost of <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/01\/06\/__trashed-3\/\">transportation<\/a>.<\/p>\n<p>Okonkwo equally decried the rising cost of logistics of getting the produced water to retailers.<\/p>\n<p>\u201cThe materials that we use to produce water, especially nylon, which we bought at about N700 per kilogramme last year is now sold at more than\u00a0 N1,600 per kilogramme and the cost is still rising with many producers thrown out of business,\u201d Okonkwo said.<\/p>\n<p>A development economist, Dr Chiwuike Uba, said that the implication of the development on the common man, \u201cremains deadly and an <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/01\/road-infrastructure-major-boost-for-economic-growth-stimulating-productivity-buhari\/\">economic<\/a> time bomb in the long run\u2019\u2019.<\/p>\n<p>Uba, who is the Chairman of Amaka Chiwuike Uba Foundation, said that economic wise, the situation might lead to social unrest and lots of vices springing up as the poor might be forced to do all sorts of undesirable things to survive.<\/p>\n<p>The economist noted that the sale of table water resulted from the failure of <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/10\/group-donates-food-items-to-idps-urges-government-to-enhance-security\/\">government<\/a> to provide treated potable pipe-borne water to households. He noted that provision of water comes second after security for every government.<\/p>\n<p>\u201cFirst, the development is an indication of a partially collapsed system and the government not taking up its responsibility of providing treated potable pipe-borne water for the people.<\/p>\n<p>\u201cSachet water businesses exist in the first place because governments at all levels have failed to provide potable pipe-borne drinking water for the people.<\/p>\n<p>\u201cWe also have inadequate basic infrastructure and public provisions such as electricity and fuel leading to the \u2018unhealthy increase\u2019 in the production of sachet water.<\/p>\n<p>\u201cAs the producers experience increased operational costs, they will naturally <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/04\/alleged-murder-court-grants-nurtw-chairman-n1m-bail-transfers-case\/\">transfer<\/a> it to the end users,\u201d he said.<\/p>\n<p>For the common man, that weighs heavily economically as a person needs an average of five of the sachet water daily.<\/p>\n<p>For a family of five, they need to buy about N500 worth of sachet water daily, he said.<\/p>\n<p>\u201cFor people not drinking enough water daily, there would be a negative health implication on the population over time.<\/p>\n<p>\u201cDue to the rise in cost, there is the likelihood that unscrupulous `business\u2019 people will start packaging unwholesome water.<\/p>\n<p>\u201cConsumption of such water might lead to health hazards, water-borne epidemics and increased expenditure on healthcare by governments and by individuals,\u2019\u2019 he said.<\/p>\n<p>In another contribution, Executive Director of Leadership and Entrepreneurship Advocacy Network, Mr Chukwuma Okenwa, noted that the price increase would have far-reaching economic consequences on the common man and also on the <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/11\/2023-elections-pdp-debunk-denying-sen-utazi-right-to-purchase-senate-nomination-form\/\">nation<\/a>.<\/p>\n<p>Okenwa noted that reasons for the increase are quite apparent following market forces indicators as well as the increase in Value Added Tax (VAT).<\/p>\n<p>According to him, this development is the final whistle to governments at all levels to address the water challenge in the country.<\/p>\n<p>Water provision is one of the responsibilities of government and a right of the citizens, he noted.<\/p>\n<p>\u201cIt is rational that the government might not be able to feed everybody in a given country; but it must and should take responsibility for providing potable water for all just as it is done in other climes.<\/p>\n<p>\u201cEven the sachet water cannot be trusted as when you do laboratory analysis of some brands in circulation, you\u2019d see impurities. This is why water-borne diseases are on the increase.<\/p>\n<p>\u201cGovernment must explore all available options of providing centrally-treated and potable pipe-borne water to households. There is no alternative to this,\u2019\u2019 Okenwa charged.<\/p>\n<p>A trader, Mr Nnamdi Aneke, said that it was inevitable that the current development would lead some traders in semi-urban and rural areas to tie water in cellophane wraps, without any form of treatment, from their homes to sell to the public.<\/p>\n<p>\u201cThe implication is that one will find it difficult to buy sachet water and be left at the mercy of those who merely tie water into some cellophane wraps and sell at N5 since the water is not treated.<\/p>\n<p>\u201cThe development will have far-reaching effect on people\u2019s health as water-borne diseases will be on the increase. The heavy health cost will be borne by the common man, his family and the government in the long run,\u2019\u2019\u2019Aneke said.<\/p>\n<p>A bus driver, Mr Steve Anih, said that the situation was weighing down on the finances of commercial bus drivers and their conductors.<\/p>\n<p>Anih revealed that he consumes at least 10 sachets of water a day in the course of his daily commercial shuttle within Enugu metropolis.<\/p>\n<p>\u201cThe unfolding situation where prices of goods and services keep increasing to the level of sachet water being sold N20 means things are truly getting out of hand.<\/p>\n<p>\u201cThe authorities should please subsidise some social amenities \u2013 petrol\/diesel and electricity \u2013 and reduce taxes so that <a href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/02\/11\/covid-19-fg-affirms-commitment-to-the-production-of-local-vaccines\/\">production<\/a> cost of sachet water can reduce or remain relatively stable,\u2019\u2019 he appealed.<\/p>\n<p>It is clear that the micro economic hardship is biting harder as drinkable water, which ought to be available to all is going beyond the reach of many households.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A current micro economic uncertainty the common man is facing is the 100 per cent increase in the price of sachet water from N10 to N20. The Association of Table Water Producers (ATWAP) in Enugu State recently announced an increase in the price of a bag of sachet water from N160 to N200.\u00a0Each bag contains [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":18055,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"footnotes":""},"categories":[11],"tags":[662,4073,4074,3646],"class_list":["post-18048","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-metro","tag-business","tag-production","tag-transportation","tag-water"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Micro economic implications of selling sachet water at N20 &#187; BROAD NEWS \u2014 WITHIN NIGERIA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.withinnigeria.com\/broadnews\/2022\/04\/11\/micro-economic-implications-of-selling-sachet-water-at-n20\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Micro economic implications of selling sachet water at N20\" \/>\n<meta property=\"og:description\" content=\"A current micro economic uncertainty the common man is facing is the 100 per cent increase in the price of sachet water from N10 to N20. 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