The Association of Master Bakers and Caterers of Nigeria (AMBCON) has made a distressing announcement. Owing to a deepening crisis caused by rising ingredient costs, the association has decided to implement a significant 15% price increase on bread nationwide.
This measure, which will take effect from Monday, July 24, underscores the urgent need for attention and intervention to save an industry on the brink.
AMBCON’s decision was reached during a virtual meeting held on Tuesday, where members unanimously agreed that the current economic realities were taking a devastating toll on bakers’ production costs.
The association highlighted the substantial increases in the prices of crucial ingredients, such as flour, sugar, yeast, as well as escalating fuel expenses.
According to a joint statement signed by Mansur Umar, the national president, and Jude Okafor, the national secretary of AMBCON, the additional costs on essential inputs have become unbearable for bakers across the country.
Truckloads of flour are now burdened with an extra N1.2 million due to a staggering increase of N2,000 per bag. Similarly, sugar costs have surged by N3.6 million per truck, amounting to N6,000 per bag. Yeast has not been spared either, with an additional N2,000 per carton adding to the financial strain.
Fuel prices have skyrocketed, with gasoline rising from N205 to N550, and diesel reaching N650 to N700, depending on the region.
AMBCON emphasized that this decision was not taken lightly. Despite the impending financial burden on consumers, the association emphasized its commitment to adhering to the quality and safety standards set by the National Agency for Food and Drug Administration and Control (NAFDAC).
They made it clear that compromising the health and well-being of fellow countrymen and women was not an option, even if it meant facing financial losses.
However, this price increase is intended to be an interim measure, as the association called on the government to intervene urgently and prevent the imminent collapse of the baking industry. AMBCON recognizes that the soaring costs of production threaten not only the survival of individual bakeries but also the availability of affordable bread for Nigerians.
Expressing gratitude for the understanding and cooperation of the Nigerian people, AMBCON assured consumers that if significant government interventions were put in place, they would review and possibly revert the bread prices.
The association firmly believes that without immediate action, the industry’s future remains uncertain, and access to staple baked goods may become increasingly unaffordable.
As bakers across the nation brace themselves for the upcoming price surge, it is clear that the baking industry is facing an unprecedented crisis. The announcement made by the Master Bakers Association serves as a wake-up call for stakeholders, urging them to address the underlying issues that have driven costs to such unsustainable heights.
Only with prompt intervention can the baking industry be saved from collapse, ensuring that Nigerians can continue to enjoy the essential and cherished tradition of freshly baked bread.
BUA Cement Takes Bold Step to Reduce Ex-factory Cement Prices to N3,500/bag
BUA Cement Plc has announced a significant reduction in ex-factory cement prices.
Effective October 2, 2023, BUA Cement will sell its cement at a remarkable rate of N3,500 per bag, affirming its commitment to providing affordable building materials to the Nigerian populace, Investors King gathered.
The statement in part; “As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward. As a result, BUA Cement would now be sold at an ex-factory* price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.”
This announcement comes as a surprise to many, as BUA Cement had previously indicated its intent to lower cement prices upon the completion of new production lines by the end of the year. However, the company’s management decided to expedite the price reduction, allowing Nigerians to enjoy the benefits ahead of schedule.
Upon completion of its ongoing plant construction projects, which will increase production volumes to a staggering 17 million metric tonnes per annum, BUA Cement PLC intends to review prices further by the first quarter of 2024. This review aims to ensure that their pricing remains competitive and advantageous to customers.
The company also clarified that all pending and undelivered orders, which had been paid for at the previous prices, would be adjusted downward to the new rate of N3,500 per bag starting October 2, 2023. BUA Cement’s licensed dealers have been urged to ensure that end-users benefit from this reduction in ex-factory prices, and the company has pledged to closely monitor field sales to ensure compliance.
Statement in full: We refer to our previous pronouncements regarding our intent to reduce cement prices upon the completion of our new lines at the end of the year, in order to spur development in the building materials and infrastructure sectors.
As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward. As a result, BUA Cement would now be sold at an ex-factory* price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.
Upon completion of the ongoing construction of our new plants, which would increase our production volumes to 17 million metric tonnes per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024.
NOTE: all pending, undelivered orders which had been paid for at the old prices will be reviewed downwards to N3500/bag in line with the new pricing from October 2, 2023. Our licensed dealers are also enjoined to ensure that end-users benefit from this reduction in ex-factory prices as we will monitor field sales to ensure compliance.
01 October, 2023
Manufacturers Cut Spending on Alternative Energy Sources as Electricity Supply Improves
Nigerian manufacturers reduced their spending on alternative energy sources by 21.25% to N60.4 billion in the first half of 2023, according to the Manufacturers Association of Nigeria (MAN).
This decline is attributed to the increased availability of electricity from the national grid, which improved to 11.3 hours per day, up from 10.2 hours in the same period of 2022.
The report also indicated a slight increase in daily power outages to 4.7 times from 4.4 times in H1 2022.
These improvements in grid electricity availability have positively impacted the manufacturing sector’s energy expenditure, leading to a significant drop from N76.7 billion spent in the second half of 2022.
However, the initial high expenditure on alternative energy sources was driven by skyrocketing diesel prices.
The cost of diesel had surged due to foreign exchange challenges and the implementation of a 7.5% Value Added Tax on Automotive Gas Oil (diesel).
Diesel prices in many states had risen to between N900 and N950 per liter, which threatened the production capacity of numerous manufacturing entities.
The Nigerian Textile Manufacturers Association expressed concerns about the potential closure of textile factories and job losses due to rising energy costs. Textile manufacturers, in particular, found it challenging to afford diesel at such prices.
The Chief Executive Officer of Coleman Technical Industries Limited also highlighted the increased production costs associated with higher diesel prices.
While the improvement in electricity supply is a positive development for manufacturers, the industry remains vigilant about energy costs and their impact on production.
Dangote Group Subsidiaries Contribute N474 Billion in Taxes to Federal Government Over Three Years
In a significant testament to its commitment to corporate citizenship and financial responsibility, three subsidiaries of the Dangote Group have revealed that they paid a substantial total of N474 billion in taxes to the Federal Government over the past three years.
The disclosure was made by Hashem Ahmed, an official representing the multibillion-dollar conglomerate, during the opening ceremony of the 18th Abuja International Trade Fair, which focused on the theme ‘Sustainable financing and taxation as drivers of the new economy.’
The Dangote Group, led by its President Aliko Dangote, stands as not only the largest private-sector employer but also the country’s leading taxpayer. The remarkable N474 billion contribution was primarily made by Dangote Sugar, Dangote Cement, and Dangote Salt.
Also, the group has a longstanding history of extensive financial support, empowerment initiatives, corporate social responsibility programs, sponsorships, and philanthropic endeavors, amounting to several billions of naira.
Hashem Ahmed also expressed the group’s satisfaction with the Federal Government’s commitment to tax reform policies aimed at broadening the tax base and providing essential funding for infrastructure development in the country.
The Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, who spoke at the event, announced the government’s comprehensive plan to support small businesses and startups amid Nigeria’s economic challenges.
The plan includes a N75 billion investment by March 2024 to bolster the manufacturing sector, grants for microbusinesses in every local government, and a N75 billion fund to support up to 100,000 startups and MSMEs at favorable interest rates repayable over 36 months.
The government has also initiated partnerships with tech giants like Microsoft and the African Development Bank, signaling a bright future for Nigeria’s economic growth and innovation.
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