Bread Makers To Govt: Our Business Is Dying, Give Us Loans

Nigeria’s economic hardship appears to be taking one of the country’s most common foods off the tables of ordinary citizens, as the rising cost of bread continues to put the staple beyond the reach of many households in the country.

For many Nigerians, bread, which used to be an affordable meal for breakfast and a quick alternative to more expensive food, has become increasingly costly. Even as consumers struggle with repeated price increases, the quality and size of bread available in the market have also come under pressure, leaving many households paying more for less.

The development is not only affecting consumers but also threatening the survival of businesses in the baking industry, with about 40 per cent of premium breadmakers reportedly shutting down their factories in the last two years.

The Premium Breadmakers Association of Nigeria, PBAN, disclosed this at its 2026 Day-Out event in Lagos, blaming the development on rising energy costs, expensive credit facilities and inadequate government support.

The association’s President, Engr. Emmanuel Onuorah, said the situation had become increasingly difficult, warning that many operators were struggling to keep their businesses afloat.

“The past years have been very tough. Words cannot even express how we feel. Our businesses are struggling, businesses are going down, and members are closing. In the last two years, we have lost close to 40 per cent of our membership to economic pressures,” he said.

Onuorah identified energy costs as one of the biggest challenges confronting bakeries, saying operators were being forced to explore alternative energy sources to reduce their production expenses.

He disclosed that PBAN was considering a hybrid energy system that would enable bakeries to switch between diesel and Compressed Natural Gas (CNG). However, the cost of converting even a small bakery to the system was estimated at between N40 million and N50 million.

The huge investment requirement, coupled with inadequate CNG supply, has made the transition difficult for operators already battling rising production costs.

The association had also explored solar energy solutions but abandoned the initiative after discovering that the proposed financing arrangements would cost members more than what they currently paid for electricity.

Beyond energy costs, Onuorah lamented the difficulty of accessing affordable loans from financial institutions, arguing that the high interest rates charged by banks were making it almost impossible for businesses in the real sector to survive.

He cited his experience in seeking a N12 million loan to convert the lighting and air-conditioning systems at his facility to solar-powered alternatives, saying the bank demanded 34 per cent interest and 20 per cent counterpart funding.

“How do you expect small businesses to survive with interest rates of 34 per cent? We are not asking for free money. We are asking for single-digit interest rates that businesses can realistically repay,” he said.

He also questioned the effectiveness of government intervention programmes for small businesses, alleging that politically connected individuals benefited more than genuine entrepreneurs.

The PBAN president urged the Federal Government to provide grants and single-digit interest loans to help bakeries invest in alternative energy and sustain their operations.

He stressed that affordable financing and reliable energy supply were critical to keeping bakeries in business, protecting jobs and sustaining economic activities.