The Premium Beadmakers Association of Nigeria (PBAN) has identified the volatile exchange rate and Nigeria’s reliance on imported ingredients as key factors driving the increase in bread prices.
PBAN President Emmanuel Onuorah explained that many baking materials are imported and priced in dollars. Consequently, the depreciation of the Naira against the dollar significantly raises production costs for bakeries, putting pressure on them to raise prices. Onuorah highlighted the continuous rise in the exchange rate during the current administration, exacerbating the situation for bakeries across the country.
Moreover, the ongoing conflict between Ukraine and Russia, major wheat suppliers to Nigeria, has further impacted bread production. With Nigeria heavily dependent on imported wheat, this disruption in the supply chain adds another layer of challenge for bakeries already grappling with rising costs.
Source: Punch