Bread producers in the country have told Nigerians to be prepared for an imminent increase in prices due to a hike in production.
The president of the Premium Breadmakers Association of Nigeria (PBAN), Engr. Emmanuel Onuorah, served this notice recently.
He said that bread producers in Nigeria have been complaining about the cost of production rising astronomically following the removal of payment on fuel subsidy by President Bola Ahmed Tinubu.
Onuorah stated further that the liberalization of the foreign exchange (forex) market by the federal government has affected the production of bread in a negative way.
According to him, majority of the baking ingredients are imported, with the floating of forex leading to an increase in the cost of clearing of such items.
“Most of our baking ingredients are import dependent; ranging from flour produced from wheat, Ascorbic Acid, Calcium Propionate, Yeast, bread softener etc, are mostly imported,” Onuorah said.
“The forex floating led to increase in amount used for clearing and we know this will certainly lead to increase in prices of bread.
“The flour millers even wanted to use the forex floating as an alibi to increase the price of wheat flour and if they do that, the price of bread would go up significantly because we would pass on the cost.
“With any increase in the price of bread now, there will certainly be more drops in sales and more bakeries will certainly close shop,” the PBAN president pointed out.
Onuorah said Nigerians should be ready for increase in the prices of bread which, however, happens to be a major food item on the table of almost everyone in the country.
The head of the bread producers’ association also added that “the imposition of 7.5% Value Added Tax (VAT) on diesel by the new administration of Tinubu has made the price increase immediately and this affected production and sales negatively.”
Credit: The Guardian
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