Reasons Behind High Price of Bread Explained by Bakers
The Premium Bread makers Association of Nigeria (PBAN) has attributed the increase in the price of bread to the volatility in the exchange rate. Before the current administration, the exchange rate was around N465 to the dollar in the official market and N762 in the parallel market. However, it rose to close to N2,000 under the present Bola Tinubu administration, which has since brought it down to a little over N1,000.
PBAN President, Emmanuel Onuorah, highlighted that most of the materials for baking bread are imported and paid for in dollars. He mentioned in an interview that the ongoing war between Ukraine and Russia has also negatively impacted bread production, as both countries are major wheat suppliers to Nigeria.
Onuorah emphasized the significance of bread as a staple food, noting that it should be easily accessible and affordable. However, with Nigeria’s heavy reliance on imports for baking ingredients and the fluctuations in the dollar-naira exchange rate, the cost of production has increased, leading to higher bread prices.
Late last year, following the removal of fuel subsidy and other economic reforms by President Bola Tinubu, Nigeria began experiencing an increase in the prices of food and other commodities. Onuorah had predicted in December 2023 that the price of bread would increase by 15 per cent to 20 per cent in January 2024 due to these factors.
He explained that the unique preferences of Nigerians for bread, which must be sweet, soft, and succulent, also contribute to the cost of production. Additionally, a significant portion of the ingredients, especially wheat, is imported from countries like Ukraine and Russia, further impacting the cost of production.
