In a recent interview with Channels Television, Emmanuel Onuorah, the President of the Premium Breadmakers Association of Nigeria, announced that bread prices in the country are poised to increase by 15 to 20 percent in January 2024. This revelation comes in the midst of ongoing economic challenges faced by Nigeria.
Onuorah attributed the impending hike in bread prices to escalating production costs. He pointed to the increased expenses related to cargo clearance by the Central Bank of Nigeria, persistent fluctuations in foreign exchange rates, and the surging costs of energy. According to him, these factors have led to a significant decline in bread bakers’ production capacity, which has plummeted by 70 percent due to the harsh economic realities prevailing in the country.
During the interview, Onuorah appealed to the government to utilize the tax revenue collected from imported wheat to support the development of in-country wheat production and the broader sector. He highlighted the adverse impact of economic challenges, stating, “From January till now, our cost has increased five to tenfold. Our capacity has dropped as much as 70 percent.”
The bread industry is grappling with reduced production capacities, with many bakers facing significant challenges. Onuorah emphasized the need for immediate intervention, urging the federal government to prioritize the domestication of raw materials for bread production within Nigeria.
DAILY POST reported that the price of jumbo-sized bread surged from N1,000 in January 2023 to N1,400 in December of the same year. The price increase is a result of rising costs of materials essential for bread production, including flavor, which rose from N9,000 in January 2023 to N12,000 in December 2023. Flour prices increased from N30,000 to N43,000, sugar from N30,500 to N49,000, and yeast from N23,000 to N44,000 during the same period.
The looming bread price hike is anticipated to impact consumers across Nigeria, adding to the economic challenges faced by citizens.