Nigerian bakers serve notice to increase prices of bread, blame inflation, foreign exchange, others

Under the auspices of the Premium Bread Makers Association of Nigeria, Bakers have decried the effects of economic reforms on the sector.

According to reports, the group's President, Emmanuel Onuorah, expressed the desire of members of the organization to increase the prices of bread during an interview on Arise TV recently.

Foreign exchange unification causes rise in the prices of bread

Onuorah stated that the merger of the exchange rate had affected the prices of wheat and sugar imports, which have experienced considerable increases.

He said that sugar and wheat imposters always claimed they sourced foreign exchange from the parallel market. But with the unified foreign exchange rate, the importers now claim they will hike prices as the rates have been merged.

He said top millers disclosed to the organization members that they sourced FX from the black market and that importers wanted to increase prices after the naira float.

Flour is among the 43 banned items by the Central Bank of Nigeria from accessing foreign exchange at the official rate before the naira float policy.

Onuorah revealed that the importers claimed they accessed foreign exchange at over N700 to a dollar before the naira float.

Flour importers decry the effects of high forex on items

The association's president said sugar importers are also crying over the impact of high forex on sugar and other items used in bread-making.

Sugar refiners have hiked their prices by N10,000 since April, Onuorah stated.

He said the planned hike in electricity tariff will further drive up the cost of production.

"In our costing, flour takes above 50% of the total cost template, followed by sugar, then energy comes close. The energy that was like 2% to 3% before now competes with sugar, and from the look of things, it may surpass it."

He complained about the planned electricity tariff hike by the NERC and its effects on bread makers.

Onuorah asked the Nigerian government to provide incentives to cushion the effects of new policies introduced by the government.

Bread is a Nigerian staple, and consumers have lamented increases of the product in recent years, which bakers have blamed on high inflation and other production costs.