AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
A small bottled water factory in Nigeria costs about ₦34 million to set up in our labelled example, including borehole, treatment, bottle blowing, filling, labelling and working capital. NAFDAC's packaged water guideline requires a fenced facility with at least four rooms, a borehole of at least 150 feet sited 30 metres from any septic tank, and treatment ending in UV and a 0.5 micron filter.
Bottled versus sachet water
Both are packaged water and both are registered with NAFDAC, so the water treatment and facility rules apply to each. The difference is in packaging, price and buyers. Sachet water sells in high volume at low prices to hawkers and households. Bottled water uses PET bottles, caps, labels and shrink-wrap, sells at a higher price per litre, and goes to supermarkets, offices, events, hotels and travellers who care about the brand.
That makes bottled water more capital-heavy and more brand-driven. You need bottles (blown in-house from preforms or bought ready), a filler and capper, and good labels, and you compete on shelf presence and trust. If you are weighing the two, see the sachet water factory guide.
What NAFDAC expects of the factory
NAFDAC's guideline for registering a packaged water facility (FSAN-GDL-002-01, effective 1 June 2018) sets out the main requirements:
- A fenced premises with a minimum of four rooms.
- A borehole at least 150 feet deep; dug wells are not accepted. The water source must be at least 30 metres from a septic tank.
- Treatment by chlorination at 2 to 4 ppm, reverse osmosis or ozone, with UV before filling and a 0.5 micron final filter.
- A certificate of analysis from an IPAN-registered analyst.
- Food handler tests for staff, and a technical officer with at least an OND.
- Documents including CAC registration, trademark, and a fumigation certificate renewed quarterly.
The guideline describes applying by letter to the Director-General through the food safety directorate, paying through Remita, submitting at the Isolo office or the nearest NAFDAC office, then inspection and sampling. It says queries are answered within 15 working days. It does not state the fees, so ask NAFDAC for the current tariff before you budget.
Set-up budget for a small line (example)
This is an example using semi-automatic machines. Fully automatic lines cost much more but need fewer staff.
| Item (example) | Cost (₦) |
|---|---|
| Borehole, pump and storage tanks | 3,000,000 |
| Treatment: RO unit, filters, UV | 6,000,000 |
| Semi-automatic bottle blowing machine | 4,000,000 |
| Filling and capping machine | 5,000,000 |
| Labelling and shrink-wrap equipment | 2,500,000 |
| Building fit-out to NAFDAC standard | 6,000,000 |
| Generator | 3,000,000 |
| Registration, laboratory tests, brand design | 1,500,000 |
| Working capital: preforms, caps, labels, film | 3,000,000 |
| Total | 34,000,000 |
Power runs pumps, the RO unit, the blower and the filler. On a Band A feeder, NERC's July 2025 orders set ₦209.50 per kWh; in an example where the line uses 60kWh in a working day, grid power costs ₦12,570 a day. A generator costs more per unit, so price your power per pack, not per month.
Margin per pack (example)
This example is for a pack of 12 bottles of 50cl.
| Cost per pack | ₦ |
|---|---|
| Preforms (12 at ₦30) | 360 |
| Caps (12 at ₦8) | 96 |
| Labels (12 at ₦7) | 84 |
| Water and treatment (12 at ₦5) | 60 |
| Shrink-wrap | 60 |
| Energy and labour | 150 |
| Total | 810 |
- Price to distributor
- ₦1,100 (example)
- Margin per pack
- ₦290
- At 1,000 packs a day
- ₦290,000 a day before rent, maintenance and transport
Monthly running costs to plan for
- Preforms, caps, labels and shrink film, bought in bulk to lower the unit cost.
- Diesel or grid power for every hour the line runs.
- Quarterly fumigation, as the NAFDAC guideline requires a current fumigation certificate.
- Periodic laboratory analysis of your water, plus filter and UV lamp replacement.
- Staff wages, food handler tests and protective clothing.
- Delivery: a van or truck, fuel and loading staff.
You also need a registered business before NAFDAC will process the application. The CAC fee schedule dated 29 May 2025 lists ₦20,000 for business name registration with a certified copy; a limited company costs more and is often preferred by large buyers.
Branding and who buys
- Distributors: they move the most volume, but want a reliable supply and sometimes credit.
- Supermarkets: need barcodes, NAFDAC number on the label and consistent stock.
- Offices, schools and churches: weekly orders, often by invoice.
- Events and hotels: some will pay for private-label bottles with their own name on the label.
Choosing bottle sizes
Most small factories start with one size, often 50cl or 75cl, because each size needs its own preform, cap and blow mould setting. Larger sizes such as 1.5 litres sell to households and offices, while dispenser bottles are a separate business with returnable containers and collection rounds. Add sizes only when a buyer has asked for them in volume.
A clean, readable label with your NAFDAC number visible does a lot of selling. Distributors also look at whether the cap seals properly and whether bottles arrive without dents.
Where Pryme fits
Offices and hotels that buy by invoice can be billed through invoicing, and distributors can pay into virtual account numbers so each payment is matched to a customer (virtual accounts). The Compliance agent can prepare reminders for renewal dates, such as quarterly fumigation, for a person to approve (Compliance). For how matched payments work, read virtual accounts in Nigeria.
Questions people ask
How much does it cost to start a bottled water company in Nigeria?
About ₦34 million in our labelled example for a small semi-automatic line with borehole, treatment, blowing, filling, labelling and working capital. Automatic lines cost more.
What are NAFDAC requirements for bottled water?
A fenced facility with at least four rooms, a borehole of at least 150 feet 30 metres from any septic tank, treatment with UV and a 0.5 micron final filter, an IPAN analyst's certificate, staff health tests and quarterly fumigation.
Is bottled water more profitable than sachet water?
It earns more per litre but needs more capital and branding. Our labelled example makes ₦290 per pack of 12 sold to distributors.
How long does NAFDAC take to register water?
The guideline says queries are answered within 15 working days, but the full process includes inspection and laboratory tests, so allow longer.
Sources
- NAFDAC guidelines for registration of a packaged water facility (FSAN-GDL-002-01), via PolicyVault · accessed Oct 2026
- NERC: July 2025 Supplementary Order to MYTO 2024, Ikeja Electric (ORDER/NERC/2025/064) · accessed Oct 2026
- CAC: New Schedule of Fees (29 May 2025) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.