Bread, a staple food for the common man may soon get farther beyond the reach of the masses following the announcement by Association of Master Bakers and Caterers of Nigeria, AMBCN, that there would be 15 Percent increment in the prices of Bread.
AMBCN President, Mansur Umar, alongside its National Secretary, Jude Okafor, stated that the increment is coming after the National Executive Council Extraordinary Virtual Meeting resolved that the 15 Percent increment will commence on the 24th July 2023.
The Association hinged its decision on the multifarious increases in the prices of Baking Materials that includes; Flour, Sugar, Yeast, Vegetable Oil, Twist Tie, Petrol, Diesel ( occasioned by the recent Fuel subsidy removal) and multiple taxation from the Staye and Federal Government.
A statement released by the association reads in part: “The recent general increases in our factors of production include, but not limited to additional N1.2 million on one truck of flour (N2,000 per bag), N3.6 million on a truck of sugar (N6,000 per bag), yeast additional N2,000 per carton, fuel from N205 to N550, diesel N650 to N700.”
The statement also said many bakers are already unemployed, with the number still growing due to the imposition of various taxes on flour millers that are ultimately transmitted to them.
“Effective 24th July 2023 as an interim measure, all members of the Association of Master Bakers and Caterers of Nigeria (AMBCN) are hereby advised to adjust their prices by 15 per cent (in consonance with the now heavily increased cost of factors of our production) across the board as we can only produce standard baked products in accordance with NAFDAC regulations as we cannot sacrifice the health of our fellow country men and women on the altar of breaking point by resorting to unhealthy practices pending further resolutions as we call on federal and state governments to intervene urgently and save our industry from total collapse,” the Association said in the statement.
No doubt, the increment could further escalate the National hunger crisis ravaging the country, as Nigerians grapple with the effect of the recent subsidy removal which has seen the prices of basic amenities skyrocket astronomically.
Emmanuel Onuorah, President, Premium Bread Makers Association of Nigeria, PBAN, in Lagos stated that the decision of AMBCN to increase the price of Bread is that the bakers are only doing an adjustment in prices to reflect the current economic realities.
He stated that the association is not out to further impoverish Nigerians, rather, they want to create a Win-Win situation for the producers and the consumers.
“What we are doing is not an increase but an adjustment. If you call it price increase, you put N400 at a go, you are just trying to match your cost and revenue because even we too, there is desperation in us to increase the salaries of our workers as the subsidy removal has affected everybody.
“The price of sugar increased by about N10,000 in the last two months; flour just added about N2,000 two days ago here and flour makes up about 65 per cent of our inputs followed by diesel and then sugar.
“Our biggest bakery has closed down because of overhead costs. How do you defray it? It is only those of us that are just at medium level that are trying to survive because we run it ourselves and we don’t have a very heavy management and all that. So, we just do a minor adjustment so that we can remain in business,” he said.
Chinonso Ndubuisi, a Lagos- based Baker lamented that AMBCN are just waking up from there slumber, stressing that the incremet was long overdue because a lot of small-scale bakeries have closed down business for long.
“Many bakers were forced out of business due to the high cost of bread-making components, either petrol prices or naira devaluation. What a baker knows is what is affordable or unaffordable and to me the major cause is the increase in the cost of sugar and flour,” he said.
He explained that a 50kg bag of flour is now sold at N29,000 and a 50kg bag of sugar is sold at N39,000 coupled with the high cost of other bread-making ingredients.
Amusan Obafemi, a consumer in Agege area of Lagos State said that the price hike will definitely reduce bread patronage by consumers, who are still grappling with the increase in other commodities and services.
He said many people who can’t afford it would definitely resort to any cheaper alternative, adding that after the increase, the bakers themselves should conduct a survey, adding that they would find out that bread patronage had reduced.
In the same vein, Caroline Adjanene, stated that the increment is coming at a time Nigerians are still trying to get their feet following the increment in price of fuel and other food items in the market.
“That means we can no longer eat bread again. The bread we usually buy for N700 has increased to N1,000 and now they are increasing it again. There is no problem we will change to another thing and find alternatives”, she said.
Nigerians are lamenting that despite the fact that President Bola Ahmed Tinubu has announced a N500 Billion Palliatives to cushion the harsh economic effect of the recent Fuel Subsidy Removal by the Federal Government, it should be earnestly implemented.
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