PBAN: High energy, credit costs threaten bakeries as 40% of members lost

Breadmakers in Nigeria are warning that expensive credit, high energy costs and rising input prices are threatening the survival of bakeries across the country. The Premium Breadmakers Association of Nigeria (PBAN) says the industry has suffered significant losses in recent years.

PBAN President Engineer Emmanuel Onuorah said about 40 per cent of the association’s membership has been lost to economic pressures.

Costs hit members

Onuorah linked the losses to a combination of high cost of borrowing, rising operating expenses, expensive credit, energy costs and increasing prices of production inputs. He said the industry had recorded significant losses in recent years.

The association warned that the pressure is not limited to a few operators. It said the combination of costly credit, energy expenses and production inputs is threatening bakery survival across the country.

What it means for businesses

The warning points to sustained pressure on bakery operators, especially as energy and credit costs remain major cost drivers. For consumers, bread prices remain exposed to these costs because production inputs are rising.

PBAN’s figures put the scale of the pressure at about 40 per cent of its membership lost to economic conditions.