Nigeria’s baking industry is facing severe contraction as rising costs, insecurity, and heavy import dependence force thousands of bakeries to shut down, according to a report from the PBAN Day Out 2025 event.
Nigeria’s baking industry is on the brink of collapse as more than half of bakeries have shut down in recent years due to soaring production costs, crippling interest rates, and insecurity, according to DAILY TRUST.
PBAN President, Emmanuel, said bakers are battling overwhelming pressures that threaten their survival and the livelihoods of thousands. He lamented that “the finances are stifling us; interest rates are astronomical… All their loans are above 30 per cent. How does any business survive with that?”
He revealed that the sector has contracted significantly since the COVID-19 pandemic, noting that out of over 140,000 bakeries operating before 2020, less than 60,000 remain today. Emmanuel added, “This is not just a baker’s problem… The cost of doing business has become unbearable.” He identified the country’s 98 percent dependence on imported wheat as a major setback, warning that Nigeria’s annual requirement of 5.1 million metric tons far outweighs local production.
He commended President Bola Tinubu for removing the 15% wheat import duty and VAT, saying the move previously helped stabilise bread prices. Emmanuel also blamed diesel reliance, rising electricity tariffs, and insecurity in farming regions for declining productivity.
PBAN Planning Committee Chairperson, Mrs. Adijatu Olopade, said this year’s conference emphasised training and innovation to help bakers adapt, while facilitator Juliet Aigbe noted losing over N6m due to rising ingredient costs.