In a recent revelation, Emmanuel Onuorah, the President of the Premium Breadmakers Association of Nigeria, announced that bread prices are poised to surge by 15 to 20 percent across Nigeria in January 2024.
This alarming increase is attributed to the formidable economic challenges gripping the nation.
During a candid interview on Channels Television, Onuorah pointed to a staggering 70 percent decline in bread bakers’ production capacity, a consequence of the harsh economic realities prevailing in the country.
He underscored that the surge in production costs is primarily fueled by the escalating expenses related to cargo clearance imposed by the Central Bank of Nigeria, persistent forex fluctuations, and the spiraling costs of energy.
“Our cost has increased five to tenfold from January till now. Our capacity has dropped as much as 70 percent,” Onuorah lamented.
He highlighted the profound impact on bread and flour counts, revealing that those previously managing 100-200 bags now struggle with a mere 20-25 bags.
This decline, he emphasized, is a direct result of the economic challenges pushing Nigerians into poverty.
The president appealed to the government, urging that the tax revenue collected from imported wheat be directed towards developing in-country wheat production and bolstering the entire sector.
He asserted, “Let’s use the money collected from the 15 percent wheat development levy to develop the sector.”
On the economic factors influencing the price surge, Onuorah detailed the sudden increase in the cost of importation.
The shift from clearing imported goods at N850/$1 to N950/$1 by the Central Bank of Nigeria has played a significant role in this impending price hike.
Additionally, he stressed that essential bread production materials such as yeast, margarine, ascorbic acid, softener, and wheat are not domestically produced.
The dire situation is evident in the sharp increase in the price of bread (jumbo size), which skyrocketed from N1,000 in January 2023 to N1,400 in December.
This rise mirrors the upward trajectory of material costs for bread production. Notably, the price of flavor surged to N12,000 in December 2023 from N9,000 in January, flour climbed to N43,000 from N30,000, sugar escalated to N49,000 from N30,500, and yeast soared to N44,000 from N23,000.
As the new year approaches, Nigerians brace themselves for these economic challenges that threaten to further strain their pockets and impact daily life.
The call for government intervention to stabilize the sector and alleviate the burden on citizens becomes increasingly urgent in the face of these impending price hikes.
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