Bakeries Are Shutting Down Operations. Prices Of Bread Will Soon Go Up - Nigerian Bakers lament High Cost of Diesel, FX scarcity
Nigerian Bakers under the umbrella of the Premium Bread Makers Association of Nigeria (PBAN) has come out to say that most of its members are already shutting down their operations due to an increase in diesel prices and high exchange rates.
Emmanuel Onuorah, the president of the association while speaking to The Cable, said that things in the baking industry are not getting any better.
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“Things are not getting better. We are still where we are. Diesel price is still hovering between N650 and N700. Even the price of the nylon that we put the bread in has just increased by about 20 percent. It’s not looking any better. Light is still comatose.
We don’t know what is happening with the DisCos. Whether system collapse or inadequate generation, there is no public light.
The diesel is expensive. People are trying to rightsize, scale down, drop workers to remain in business. The government doesn’t seem to be listening to anybody. It’s not even only the bakers, it’s an industry-wide thing. MAN is crying. Hospitals that are running diesel are also optimizing.'' he said
According to Onuorah, the prices of bread will surely increase because there is an increase in operational materials.
“It will certainly go up. Because if you don’t pass on the cost, how do you remain in business? But on the other hand, are we not Nigerians? Do customers have the income to bear this?
You have to look at all these things and place everything in context. There is a human element to all these.
People are bending backward to see what they can do. Things such as reducing the sizes of their bread or cutting down on the weight. This is so that we can just maintain what are we doing.” he said
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