Nigerians will face yet another blow to their wallets in the new year as bread prices are set to surge by 15% to 20% in January 2024. This sobering revelation was made by Emmanuel Onuorah, the President of the Premium Breadmakers Association of Nigeria, during an interview with Channels Television that was closely monitored by Media Talk Africa on Wednesday.
Onuorah attributed the imminent bread price hike to escalated production expenses driven by soaring costs for cargo clearance regulated by the Central Bank of Nigeria, persistent forex fluctuations, and escalating energy expenditures. He lamented that the harsh economic realities have led to a staggering 70% reduction in the bread bakers’ production capacity and urged the government to allocate the taxes collected from imported wheat towards fostering domestic wheat production and the sector at large.
“The cost of our production has surged five to tenfold from January till now. Our capacity has plummeted by as much as 70%. Bread and flour counts have dwindled significantly; those who previously handled 100-200 bags are now struggling with 20-25 bags. All these are a result of the pervasive poverty plaguing Nigerians on a daily basis due to the economic hardships in our country. It is an arduous time for our members and the Nigerian populace,” Onuorah stressed.
He further expounded on the escalating costs, citing examples of imported goods clearance rising from N850/$1 to N950/$1, with essential ingredients like yeast, margarine, ascorbic acid, softener, and wheat being solely reliant on imports. He implored the federal government to prioritize domestication of some key raw materials for bread production within Nigeria, advocating for the allocation of funds accrued from the 15% wheat development levy to fortify the sector.
The domino effect of these economic challenges has already manifested in the form of skyrocketing prices for bread and its production components. For instance, the price of jumbo-sized bread surged from N1,000 in January 2023 to N1,400 in December, reflecting the crippling impact of inflation within a short span. The price hike ripples through to key production materials, such as flavor, which surged to N12,000 in December 2023 from N9,000 in January, flour to N43,000 from N30,000, sugar to N49,000 from N30,500, and yeast to N44,000 from N23,000.
The impending bread price surge in Nigeria serves as a poignant reminder of the multifaceted challenges engendered by economic hardships, propelling ordinary citizens and stakeholders alike into a relentless struggle for financial stability. As the country braces for the new year, the plight of the bread industry underscores the urgent need for comprehensive interventions to mitigate the adverse effects of these economic upheavals and foster sustainable growth within the sector.