Louis Iba 

Bakers in Nigeria have demanded that the Federal Government reviews duty and tariff regime on wheat importation and also make foreign exchange accessible to investors in the business to avert possible hike in bread cost.

The bakers under the aegis of  Premium Breadmakers Association of Nigeria (PBAN) and Association of Master bakers & Caterers of Nigeria (AMBCN) at a press briefing in Lagos lamented  that their  businesses have become comatose due to incessant increase in prices of baking ingredients, inability to pass on the cost to consumers and erosion of profits in trying to maintain prices that don’t reflect economic realities.

They said if the government failed to come to their aid, they would be left with no option than  to increase the prices of bread to reflect the corresponding rise in the cost of basic baking ingredients like flour, butter, wheat, milk, sugar and groundnut oil.

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According to the President of PBAN, Tosan Jemide, between March and August, the price of flour,  the major ingredient in bread baking, had increased from N10,500 per 50kg bag to N13,500 per bag.

“Sugar increased from N13,500 per bag, went as high as N29,000 and down to N19,000 per bag in the corresponding period. Margarine rose from N5,800 to  N11,000. A 25 litre can of vegetable oil rose from N13,000 to N16,000, while milk which was hitherto N29,000, now goes for N52,000.Preservative (calcium propionate) increased from N25,000 to N34,500, with the possibility of further increase not ruled out,” he said.

“Currently, there is a five percent tariff on wheat imports, plus an additional 15 per cent levy earmarked for the national wheat development programme totalling a 20 per cent duty. Since 2012, the wheat development programme in Nigeria has been in place, yet eight years later, we are yet to see the benefits of the 15 per cent levy in the local wheat supply chain.

“We therefore call on the government to look into ensuring that the wheat development programme functions well to justify the additional 15 per cent levy. If this is not a viable programme, we appeal to the government to scrap it and give the millers this 15 per cent back so it can cascade to the entire flour industry and the Nigerian citizens alike. Considering that bread has become the most popular staple in Nigeria, we suggest that the government revisits its forex policy, by giving wheat importers priority for accessing foreign exchange since our local wheat production cannot meet up with the growing demand for flour,” Jemide said.