Starvation looms as baking industry moves to shut down over high cost of production

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Baking industry producing bread, a major staple food in Nigeria is currently shutting down operation in some parts of the country following the high cost

DAILY POST observed that some bakeries in the Federal Capital Territory had already shut down since May 2021 and resorted to other businesses following constant surge in bags of flour and sugar.

Similarly, a bag of sugar which was sold at the rate of N13,000 in late 2020 is currently sold for N25,000 and above in many parts of the country. According to him, “We have basically ran at a loss for the past 7 months, been keeping it open with personal funds just so my workers would have a job while I thought there would be change, but at this moment we have no other choice than to shut down.

Speaking on reasons for the constant increments, the CEO said “since wheat importers started to source their Fx from the black market, the price of flour has continued to rise”. He said, “Before I shut down the bakery recently, I was already indebted. What I usually do was to go to the market and get the flour from the seller then pay him after selling the bread but unfortunately, I was no longer making even the capital not to talk of profit. I had to stop and look for alternative.

 

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