Bakers Association Increases Bread Prices by 30% Amid Looming CBN Ban on Wheat, Sugar

- The Association of Master Bakers and Caterers of Nigeria have increased their bread prices by 30%

- The increase in prices of bread was caused by the rising cost of ingredients and other materials used for baking and packaging

- Hike in bread prices came as a surprise as the Nigerian Bureau of Statistics said food inflation was down in April

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Prices of bread and other pastries will rise by 30% due to the high prices of baking ingredients and materials in Nigeria. The increase in prices comes at a period Nigerian Bureau of Statistics said food inflation dropped in April.

The Association of Master Bakers and Caterers of Nigeria (AMBCN) made the new development known on Wednesday. The body said in order to survive, bakers have to increase prices.

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AMBCN said the baking business is bleeding due to the rising cost of flour and other raw materials. It stated that a truck of flour now costs N9 million, against the N6 million price within the last six months.

The association also said the regulatory procedure should be reviewed to ease oversight process of bakeries, asking that the National Agency for Food and Drug Administration and Control (NAFDAC) be recognised as a sole authority.

The rising cost of raw materials comes at a period the Central Bank of Nigeria stated that it will include sugar and wheat on its forex restriction list, stating that the items can be produced locally.

The statement by the bakers association contradicts the report of the NBS that showed food inflation dropped to 22.72% in April, against the 22.95% in March, while headline inflation was down at 18.12%, compared to 18.17%

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Meanwhile, Legit.ng had reported that the Nigerian business environment has been rated low by a new report from FDI Intelligence. This puts the country outside the top five viable markets.

Nigeria was placed sixth behind South Africa, Kenya, Egypt, Ghana and Tunisia, for countries startups can thrive. Nigeria only recorded the highest number of startups.

But the country was lacking factors that could support and ensure the growth of its startups, the reason why South Africa record more funding last year, compared to Nigeria.

Source: Legit.ng