The bakery sector in Nigeria is facing a dire situation as the Association of Master Bakers and Caterers of Nigeria (AMBCN) raises a red flag. A staggering 500,000 jobs hang in the balance due to the escalating costs of materials that could force bakery operations to a halt.
Chief Matthew Ayoola, Chairperson of the AMBCN’s Lagos state chapter, sounded the alarm over the government’s recent price hikes on baking materials. This move directly imperils the livelihoods of both employers and employees within the industry.
The crunch is evident: flour prices have skyrocketed from ₦28,000 to ₦35,000 per bag, and sugar surged from ₦37,000 to ₦43,000. Other essentials like nylon, butter, improvers, preservatives, flavors, and vegetables have seen steep hikes too.
These elevated expenses, combined with the surging costs of distributing bread to retailers, have placed an unbearable strain on the already struggling sector.
The consequences are already visible, with more than 50 AMBCN members shutting down their factories due to the unfavorable business climate. The remaining establishments are barely holding on, and there’s a looming fear that they too might be forced to shutter, leading to a potential job crisis involving thousands of workers.
Chief Ayoola’s plea echoes: the federal government must step in swiftly to curb further bread price surges. The AMBCN stresses the urgent requirement for government support to stabilize the bakery industry and safeguard the livelihoods of its dedicated workforce.