Rising Cost of Production: Nigerian Bread Bakers to Go On Strike From Feb 27

Amid rising cost of food items in Nigeria, bread, one of the major staples for Nigerians may no longer be available from February 27, 2024 as the Association of Master Bakers and Caterers of Nigeria (AMBCON ) has indicated that its members will withdraw their services from February 27.

The association said in a statement issued on Tuesday stated that unless the Federal Government begins the immediate implementation of the agreement it entered with the association on since 2020, its members will no longer be able to do business in Nigeria.

said it would withdraw its service nationwide from February 27, should the Federal government refuse to implement the agreement it entered into with the association in 2020.

The association lamented that over 40% of bakeries in Nigeria has already folded up due to the stifling operating business environment, noting that Federal Government promised the members of the association post COVID-19 support programmes for Small and Medium Enterprises for bakers but has since reneged on the promise.

The association’s statement from the National President of AMBCON, Alhaji Mansur Umar, was read on his behalf by the Kogi State Chairman of the association, Chief Gabriel Adeniyi, on Tuesday in Lokoja.

The association noted that prices of key components of bread-making including flour, sugar, groundnut oil, wheat, etc coupled with the increase of the prices of diesel, petrol  and transportation has made bread production difficult in Nigeria. The association also lamented the excruciating multiple taxation regime that has further closed down bakeries in the country.

Part of the association statement reads:

“The Association of Master Bakers and Caterers of Nigeria have critically accessed the state of our business operation, consequently demand the liberalisation of flour and sugar importation, reduction or total removal of import duties on major baking materials such as flour, sugar, butter, yeast etc as applicable to other commodities as have recently been done by the federal government and Provision of concessionary forex exchange to flour millers and other stakeholders as well as reduction of tariff on imported wheat and sugar.”

“Due to the multifarious increase in the prices of baking materials such as-Flour, Sugar, Yeast, Vegetable oil, Petrol, Diesel (occasioned by subsidy removal and forex deregulation), multiple taxations from federal government agencies, the Association of Master Bakers and Caterers of Nigeria have critically accessed the state of our business operation, consequently demand the following:

“Liberalisation of flour and sugar importation, reduction or total removal of import duties on major baking materials such as flour, sugar, butter, yeast etc as applicable to other commodities as have recently been done by the federal government. Provision of concessionary forex exchange to flour millers and other stakeholders and reduction of tariff on imported wheat and sugar.

“Development of cultivation and processing of wheat and sugar cane in Nigeria, removal of multiple taxations both at the federal, state and local government levels, Immediate implementation of financial support palliatives for bakers as promised as post covid-19 support programmes for SMEs for bakers who have lost over 40% of her membership and still counting.

“Suspension of all forms of taxations on the bakery industry, for now, both at the federal, state and local government levels, set up a price control and monitoring committee as allowed by the constitution of the Federal Republic of Nigeria as amended and other conditions that will enhance the ease of doing business in the country.”