Benin City Water Crisis: Strike Gives Rise to Smaller Brands as Consumers Seek Alternatives

Benin City Water Crisis: Strike Gives Rise to Smaller Brands as Consumers Seek Alternatives

The one-week strike by sachet water producers in Benin City, Edo State, which was called off on January 20, 2024, had a significant impact on both residents and the water industry. The strike was triggered by the imposition of a new N1,000 daily levy on each water distribution truck, a decision that led to the temporary shutdown of major water producers and disrupted the regular supply of sachet water.

Water producers, organized under the Association of Table Water Producers (ATWAP), called off the strike after a series of discussions with the state government. The resolution included the cancellation of the controversial haulage fee, which had sparked the protests, according to Benedict Aigbedion, CEO of Clegie Table Water. “After our discussions with the government, the haulage fee was removed, which led to the suspension of the strike,” Aigbedion confirmed.

While the strike lasted from January 15 to 20, the absence of major water brands created an opening for smaller water factories to step in and meet the increased demand. These smaller manufacturers took advantage of the situation, ensuring that the shelves remained stocked despite the scarcity created by the strike. As large factories paused production, smaller, less established brands saw a surge in demand, capitalizing on the gap left by their larger competitors.

Favour Kingsley, a resident of Benin City, shared her experience of finding a new water supplier during the strike. “I was surprised when my regular store had no water due to the strike. I asked around, and someone told me about a small factory nearby that had sachet water available. It saved me during the scarcity,” she explained.

For many residents, the experience of discovering smaller, local water producers has prompted them to rethink their loyalty to established brands. One anonymous consumer, who had been searching for a particular well-known brand, stumbled upon a smaller water vendor offering a more affordable product. “I tried the water from a mini truck selling a brand I’d never heard of before. It tasted just as good, and at N260 per bag, it was cheaper than what I was used to. I think I’ll stick with it,” the consumer noted.

The strike’s resolution, while welcome, did not bring the expected relief in pricing. Although the primary cause of the strike—the haulage levy—was resolved, the price of sachet water has continued to rise. Factory prices have surged, with a bag now selling for N350 to N400, a jump from the previous price range of N300. Local retailers have also passed on these increased costs to consumers, further exacerbating the strain on household budgets.

Residents like Emmanuel Oji expressed frustration with the ongoing price hikes. “I thought once the strike was over, prices would go down, but they’ve stayed the same or even increased. The government needs to help reduce these costs,” he lamented. Another resident, Tracy Ohovwor, said the strike’s impact had forced her to reduce her water consumption. “The prices have gone up so much that I can’t afford to drink as much as I used to. Even with the strike over, I can’t see myself buying a bag of water for N350,” she said.

Water producers have explained that the rising costs of raw materials, including fuel and packaging, have made price increases unavoidable. Aigbedion of Clegie Table Water pointed out that the cost of essential materials, like packaging, has risen sharply, leading to the increase in prices. “The cost of materials we use has gone up from N2,400 per kilogram to N2,500, and fuel prices have also increased, which is why we’ve had to raise our prices,” he said.

Despite the challenges, smaller water producers appear to have gained traction during the strike, with many residents now considering them as viable alternatives to the larger, more established brands.

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