Persistent increase in costs of production amid a harsh operating business environment has been blamed for the gradual reduction in the size of N100 bread and the closure of several bakeries in the country.
In a recent interview with a Nigerian publication, Premium Bread-Makers Association of Nigeria (PBAN) disclosed that a harsh business environment heightened by rising energy costs and increasing exchange rates has compelled some of its members to shut down business operations while others have also begun to ration the size of their production.
Bread is an essential food item for many Nigerian families and individuals who prefer it on a daily basis. However, across the country, a number of people have shared that the size of bread per amount keeps shrinking by the day.
While the situation may not appear shocking to many Nigerians in the Buhari-led administration, the President of the PBAN, Emmanuel Onuorah, has described the situation as worrisome.
Onuorah blamed the Nigerian government for not taking appropriate steps to contain the harsh environment and issues being faced by breadmakers in Nigeria.
Speaking on the matter, the president disclosed: “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. 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.”
Bakers are not the only ones affected by Nigeria’s harsh business environment, energy issues and increasing exchange rates. Nigerians have decried inflation on almost every piece of commodities and services in the country.
The Consumer Price Index, which measures the price of goods and services in an economy, rose to 15.70% in the month of February to further attest to surging prices in Africa’s largest economy.