Nigeria’s bakery industry is facing one of its worst crises in decades, with more than 40% of bakeries nationwide forced to shut down between the post-COVID era and 2025. This is according to the Premium Breadmakers Association of Nigeria (PBAN), which warns that the sector is buckling under the weight of insecurity, soaring production costs, poor road networks, and a generally hostile business environment.
PBAN President, Emmanuel Onuorah, disclosed that the number of bakeries operating in the country has plummeted from over 100,000 to fewer than 60,000 within the period. He described the decline as alarming, noting that the closures are not only eroding livelihoods but also threatening the nation’s food security.
Bread at Risk: Nigeria’s Most Consumed Staple
Onuorah stressed that bread remains one of Nigeria’s most widely consumed foods across rural and urban communities. The continued shutdown of bakeries, he said, risks disrupting supply chains and making the staple increasingly inaccessible to low-income households.
“The situation is dire. Many bakeries can no longer cope with production costs or operate safely in the current environment,” he said, warning that more closures may occur without targeted government intervention.
Rising Costs and Harsh Realities
Operators across the country report being squeezed by:
- Escalating prices of flour, sugar, and other raw materials
- High energy and diesel costs
- Transportation challenges due to poor road networks
- Security threats affecting distribution and operations
- Multiple taxation and regulatory pressures
PBAN maintains that without structural support, tax harmonisation, and improved access to credit, the industry could face a deeper collapse.
Calls for Urgent Policy Action
With the bakery sector playing a key role in food availability and employment, PBAN is urging federal and state authorities to prioritize interventions that stabilize input costs, enhance infrastructure, and improve the ease of doing business.
Analysts say the sustained decline signals deeper cracks in Nigeria’s manufacturing ecosystem and underscores the need for long-term policy reforms to protect essential sectors and prevent further erosion of local production capacity.
