Premium Bread Makers Association of Nigeria (PBAN) has given reasons why the price of bread continues to rise in the country, despite appreciation of the Naira against the Dollar.
The President of PBAN, Emmanual Onuorah made the reasons known during a presentation on Arise News’ Global Business Report on Tuesday.
Onuorah explained that the 15 per cent Wheat Development Levy by the federal government on bread and the cost of other inputs are responsible for the high cost of the commodity.
The price of a loaf of bread rose to around N2,000 in February after bakers reported an increase in a bag of flour from N37,000 to N42,000 and sugar from N62,000 to N72,000.
The Naira has gained against the Dollar from N1,700 in February to nearly N1,000 in April.
Onuorah explained that wheat constitutes 60 to 65 percent of bread, which he said is imported from Ukraine, Russia, and other parts of the world.
“Since this crisis (Russia/Ukraine war) started about three years ago, it has led to an upending of our pricing structure regarding wheat. As a country Nigeria produces, we can grow wheat in 15 states,” he said.
The PBAN president said bread makers pay a 15 per cent Wheat Development Levy, which he stressed is transferred to the final consumers.
“For instance, they (federal government) take 15 percent for every bread that you eat, for every flour that we buy, 15 percent of it is taken for wheat development level.
“Cumulatively, the duty on wheat is 30 per cent and 15 per cent Wheat Development Levy that Jonathan initiated in June 2012 and was supposed to be adopted as a stopgap. But it’s still there till today.
“They are supposed to use it for R&D and all of it. But it’s still the same thing, redoing corruption and all that. We are not getting the benefit of that.
“And that’s why we’ve been asking the government to remove this thing, and place a moratorium on wheat imports since Nigerians are hungry.
“So, we’ll keep pushing on the pressure. That’s why we are a pressure group. And we must use our platform to ensure that Nigerians also get cheap bread,” Onuorah said.
He also said the cost of diesel, electricity bills and other inputs are responsible for the price increase.