PBAN & AMBCN: On Thursday, bakers in Nigeria announced the possibility of increasing the prices of bread on account of rising costs of sugar, flour, fuel and electricity.

Two bakers’ union, the Premium Bread Makers Association of Nigeria (PBAN) and the Association of Master Bakers & Caterers of Nigeria (AMBCN) have lamented the high cost of purchasing baking ingredients in Nigeria.

The group, in a press conference held in Lagos, called on the federal government to look into the increase in the prices of the essential material, describing it as a “near wipeout of the bread-making industry in Nigeria.”

This declaration came the same day the Nigerian government banned forex on all food and fertiliser imports into Nigeria.

The president of PBAN, Tosan Jemide, while addressing journalists at the press conference on Thursday, said that the bread-making industry has employed millions of Nigerians directly or indirectly, making it a key employer of labour in the country.

Mr Jemide noted that bread has become an important staple food in most Nigerian households, regardless of social standing and hindrance to its production could affect the country’s economy adversely.

“Although we have been experiencing difficulties for a while, the period between March 2020 and August 2020, the price of flour which is our major ingredient has increased from N10,500 per 50kg bag to N13,500 per bag. Sugar increased from N13,500 per bag, went as high as N29,000 and down to N19,000 per bag in the corresponding period.

“Margarine, from N5,800 is almost N11,000. A 25 litre can of Vegetable oil which was about N13,000 thousand now sells for N16,000 while Milk which was hitherto N29,000, now goes for N52,000. Preservative (Calcium Propionate) increased from N25,000 to N34,500, with the possibility of further price increases not ruled out,” he said.

Mr Jemide added that the members of the association have been putting up with the price hike in the past six months without a corresponding increase in the prices of bread. He, however, said the bakers could no longer continue to subsidise the rates of bread, as their profits have been totally wiped out.

He said, “Most of us got loans with double-digit interest rates from banks and other financial institutions to fund our bakery projects and are finding it extremely difficult to meet our loan repayment obligations. Both Associations shall henceforth be responding correspondingly to any indiscriminate price increases by millers, sugar refiners, and ingredient manufacturers and suppliers with the same measure in the prices of bread.”

Mr Jemide also kicked strongly against the decision of the flour millers, sugar refiners, and baking ingredient manufacturers to increase the prices of their products without due consultations with the stakeholders in the baking industry.