The Premium Bread Makers Association of Nigeria (PBAN) has attributed the recent increase in the price of bread to the volatility in the exchange rate.
The association noted that the exchange rate has been unstable, especially under the present Bola Tinubu administration, leading to fluctuations in the cost of production materials.
Before the current administration, the exchange rate was around N465 to the dollar in the official market and N762 in the parallel market. However, it has since risen to close to N2,000 before settling at a little over N1,000.
PBAN President, Emmanuel Onuorah, explained that most of the materials for baking bread are imported and paid for in dollars. He highlighted the impact of the ongoing war between Ukraine and Russia, as both countries are major wheat suppliers to Nigeria.
Onuorah emphasized the importance of bread as a staple food and expressed the challenges faced by bakers in Nigeria, where almost 98% of the materials used are imported.
READ ALSO: Nigerian Cassava Growers Association Laments $200m Annual Loss from Untapped Cassava Bread Scheme
He highlighted the vulnerability of the industry to fluctuations in the dollar-naira exchange rate, which directly affects production costs.
Late last year, following the removal of fuel subsidy and other economic reforms, the country began to experience an increase in the prices of food and other commodities. Onuorah had previously stated in December 2023 that the price of bread would increase by 15% to 20% in January 2024 across Nigeria due to these factors.
READ ALSO: It Won’t Work ‘- Nigerians Reject Senator Ned Nwoko’s Bill On Monthly Rent Payment
He also noted the unique preferences of Nigerians for bread, which must be sweet, soft, and succulent. This demand, coupled with the high consumption rate of white bread in Nigeria, further emphasizes the impact of external factors on the bread-making industry in the country.