Why price of bread is yet to drop despite reduction in cost of flour
When prices of food commodities in many states began to drop, it was expected that byproducts made from them would equally experience reduction in cost, but contrary to the expectation, the byproducts, especially bread, which is made from flour, has remained high. Most times, when there is a hike in the price of flour, it […]
bread
When prices of food commodities in many states began to drop, it was expected that byproducts made from them would equally experience reduction in cost, but contrary to the expectation, the byproducts, especially bread, which is made from flour, has remained high.
Most times, when there is a hike in the price of flour, it is believed that the first thing affected is bread which almost every home buys, with most bakeries threathening to shut down because of the alarming hike in the cost of flour.
In recent times however, there has been a growing concern from the public that despite the visible price reduction in commodities especially flour, the price of bread, which is one of the many basic staples in many homes in Nigeria, is yet to see a price drop. In fact, it used to be more easily accessible than other kinds of food as both the rich and the poor could afford it.
Weekend Trust reports that over the years, bread gradually became inaccessible to many families, especially low income earners. This development has forced a lot of families to seek an alternative. Loaves of bread became very expensive as bakers claimed that the priceof flour and sugar had gone up. A loaf of N700 became N1, 200 and that of N500 became N1,000, a development that forced some families to gradually erase bread from their menus.
Idris Bello Biyu, a civil servant in the Kano State Teachers Service Board and father of four said that at a time he needed at least N2,200 to buy bread every morning; hence the situation became unbearable and he had no option than to cancel bread from the family’s menu.
“If I am to eat bread in my house for let’s say 10 days in a month, I have to spend a lot of money. Therefore, I figured out that no matter how desperate we are or we love to eat bread, it became clear to us that we could not afford it, so it had to go off the house menu.
“Sadly, when reduction in the prices of commodities began, we thought the price of bread would drop as well, but it didn’t happen,” he lamented.
It was gathered that late last year a 50kg bag of flour was sold between N70,000 and N71,000 and a bag of sugar cost N83, 000 and N85, 000 per 50kg, but as at the first week of March 2025, a 50kg bag of flour was selling at N58,000 while sugar is selling at N80, 000, yet the price of bread has remained high.
It is said that in Nigeria, the bread industry generates up to US$19.81 billion and the market is expected to grow annually by 11.04 per cent. If this is anything to go by, then it is clear that the bread-making business is expanding without the commensurate impact on citizens.
Malam Baba Dahiru, a bread vendor who has been in the business for over three decades, said they were aware of the fact that there ought to have been a reduction in the bread price, but bakers have to nurture and grow their businesses.
“We have on several occasions confronted proprietors of bakeries on the possibility of reduction in price, but they told us that there were over 10 items needed to make a break, which are also costly. It is apparent that bakers will always strive to be in business no matter the price of raw materials,” he said.
A bakery owner in Kano State, Alhaji Manu Inuwa, told our correspondent that the public failed to understand that even if the prices sugar and flour dropped, other items have not dropped, and they are very vital in bread making.
He added that people should understand that there are stages in increasing the price of bread, which are the same when trying to reduce it. He said, “We don’t increase the price outright; rather, we systematically reduce the weight of the loaf; and from there, other stages will be followed till the end, which is increase in price.
“If you are not in the system you won’t understand the process. Indeed, there has been a reduction in price of sugar and flour, in addition to some other items; and if you notice, many bakeries have added weight to their bread to justify the reduced prices of commodities. However, this weight addition may not be noticed by users, but this is the fact.”
Another baker, Alhaji Umar Idi, said the public should investigate first before castigating bakers for not reducing the price of bread. He added that directly or indirectly, many bakers have reduced the price of their bread.
He also said that apart from sugar, flour and cooking oil, which prices reduced, there are other very vital items for bread baking that have not reduced.
“There are very vital ingredients that bread making needs; for instance, a 16kg pack of butter initially selling at N5,000 is now N36,000. Those using wood are also complaining that a truck they initially got at N80,000 is now selling at N150, 000. Similarly, 20 litres of ADC, which was sold at N20,000, is now N112,000. These are additives that are best in making bread and if their price didn’t drop, it is apparent that many bakeries may not directly reduce the price of bread,” he said.
However, some bakers in Kano State have reduced their bread price by less than 1 per cent while some others have begun increasing the weight of loaves.
In Abuja, our correspondent who went round some major markets observed that a 50kg bag of flour is sold between N60,000 and N65,000 as against N80,000 and above last year.
Tea vendors struggle as bread prices affect sales
Asides families inability to purchase bread as in the past, one major business in the flour sector that has been greatly affected are the tea vendors mostly known as Mai shayi (teat vendor). Adamu Garba Dogo Maishayi, a ‘shayi’ vendor in Gombe, has raised concerns over a significant decline in tea sales, attributing the downturn to Ramadan fasting and the high cost of bread.
Dogo Maishayi, who operates a mobile tea business, explained that many of his customers now opt for tea without bread.
He explained, “Most customers now break their fast with just tea. Even before Ramadan, many customers had already started cutting back on bread due to its rising cost.”
He further lamented that the high cost of bread has severely impacted their sales, urging relevant authorities to intervene.
“The authorities should encourage bakers to reduce the prices of bread in line with the decrease in flour prices. The high cost has negatively affected our profits,” Dogo Maishayi said.
“Bakers do not hesitate to increase bread prices when the cost of flour rises, but they are slow to reduce prices when flour prices drop.”
The vendor revealed that many ‘shayi’ sellers are now struggling to operate, with some barely breaking even due to the high cost of bread.
However, Alhaji Aliyu Abdullahi, chairman of the Bakers’ Association in Gombe, offered insight into reasons behind the stagnation in bread prices.
He explained that the recent reduction in flour prices has been minimal, which has had little impact on the cost of bread. “The reduction in flour prices is just about 3 per cent, which is insignificant,” he said.
“If the price of a bag of flour had dropped by N10,000, we would see a ripple effect on bread prices. In that case, a loaf priced at N1,000 would drop to N900.”
The chairman of the Association of Master Bakers and Caterers of Nigeria (AMBCN), Federal Capital Territory (FCT) chapter, Mr Ishaq Abdulraheem, said although there was a slight reduction in the price of flour, it can’t lead to a fall in the price of bread.
In an exclusive chat with Weekend Trust, Abdulraheem said stopping the importation of wheat would drastically bring down the prices of bread.
He said: “At the time of the controversy, flour was sold at N60,000. Currently, it is N58,000. Sugar too has reduced from N82,000 to N80,000.
“Note that we are paying for electricity. And the price of diesel is fluctuating. I bought a litre of diesel at N1,150 today, and when there is no electricity, we resort to that. Also, the price of margarine and nylon we use for packaging have not changed. Yeast has also not changed.
“The N2,000 reduction is not enough. If we remove N50 from each loaf of bread, we would even run at a loss. Nothing has come down apart from flour and sugar.”
On the major factor affecting bread price, he said: “As long as Nigeria keeps importing wheat, the price of bread will remain high. We can use cassava as an alternative. That’s why we have been agitating for the government to ensure that cassava production is increased.”
Meanwhile, residents of the FCT who spoke with our correspondents said they were struggling to keep up with the cost of the once affordable food.
“Bread has become a luxury item. I can’t even remember the last time we ate bread in my family due to the high cost. A loaf of bread is nothing less than N1,500 in my area for something that used to cost below N500. Government should please intervene,” said Mr Badmus Kolapo, the head of a family of six.
Another resident who simply gave her name as Ibiyemi said, “It is quite unfortunate that the staple food that used to be very affordable has now turned to gold. The most annoying thing is that the quality has dropped. I remember when I used to eat bread daily. The government should please do something.”