Nigeria Bakers, the Premium Bread-Makers Association of Nigeria (PBAN), is considering doubling the price of bread. The Association says it is either this increase or liquidation for most of them.
The union laments that cost of diesel and increasing foreign exchange rates have caused many of its members across the country to close down their business operations
The President of PBAN, Emmanuel Onuora, describes the current economic situation as very bad and capable of killing the bread industry in NIgeria.
He said the only choice is to increase the price of the commodity. Or they will be forced to stay out of business by the crippling economic situation.
He expressed concerns over what he called the lacklustre attitude of the government towards addressing the harsh operating environment faced by businesses.
He said, “Companies are shutting down their businesses as a result of the increase in the price of diesel. Some of my members shut down (their business premises) again this week. So many other companies are closing down.
“As we speak, operators in the sachet water business segment are on strike. They’ll likely increase the price of sachet water to N25 or N30. We don’t even know where this thing is tending towards. Bigger companies are closing because of operating costs. Businesses are going under.”
According to Onuorah, wheat suppliers have suggested a possible scarcity of the product within the next two weeks, indicating that the price of bread may go up significantly.
“Hospitals now have to ration diesel. Energy is the key. We understand that in two weeks time, there will be a scarcity of wheat and the millers will raise their prices to N30,000 or N40,000,” he added.