Prices of bread and other flour-based foods are expected to keep rising as bakers and flour millers say there’s no solution for the main causes of increased costs in the industry.
They also plan to continue passing these costs on to consumers.
Naijassador found that major companies in this sector make profits faster as production costs rise. In 2023, their production costs increased by 45%, while revenue grew by 47.2%. This suggests they may be charging consumers more than necessary to cover costs.
One key issue is Nigeria’s reliance on imported wheat, as the country produces less than 1% of what it needs. Other challenges include high exchange rates, expensive fuel, and poor infrastructure.
Bread prices have jumped over 76% in some cases, far outpacing the inflation rate. Vendors report lower demand due to the price hikes.
Industry experts say the government should invest in local wheat production and offer support to bakeries to avoid further price increases. Many bakers also call for single-digit loans and grants to keep their businesses running amidst the rising costs.
