Multiple taxation and rising prices of raw materials in Nigeria have compelled bread makers to shut down operations from Thursday July 21, the Premium Bread makers Association of Nigeria, PBAN, has said.
In a statement on Wednesday, PBAN President, Mr. Emmanuel Onuorah, said bakeries could no longer operate due to government levy on imported products such as wheat, amongst others.
He noted that the shutdown of operations which will last for an initial period of four days was in protest for the removal of the 15% wheat development levy imposed on wheat importation and other demands.
PBAN wants the Nigerian Government to slash the N154, 000 levies for late renewal of certificates received by the National Agency for Food and Drug Administration and Control, NAFDAC, and to also open up access to grants and soft loans for bakers, which Micro, Small and Medium Scale Enterprises, MSMEs, receive from the Central Bank of Nigeria, CBN.
Part of the statement read: “Bread is a staple food and one of the cheapest ‘grab and go’ food that is available for both the poor and rich. It therefore behooves on the federal government to be mindful of this and ensure the survival and sustainability of the industry.
“Operating a bakery in Nigeria has become near impossible as the incessant increase in the prices of baking materials and diesel rendered the industry comatose. Bakeries are mostly running on huge losses and this is no longer sustainable.
“In a move to ensure the survival of the Premium breadmaking industry in Nigeria, we have decided to embark on a withdrawal of services beginning from Thursday 21st July, 2022 for four days in the first instance and where no intervention from the government, we shall escalate the duration of the withdrawal.
“Our efforts to ensure the survival of the industry led to series of meetings with the Federal Ministry of Industry, Trade and Investment, Abuja (FMITI) with our sister association in the bread making industry in 2021. Our best attempts to ensure that suggestions we put forward for survival of the bread making industry has not yielded the desired result.
“Therefore, the withdrawal of service is the only way we believe we can use to get to Federal Government and Nigerians and let them know our plight and how difficult it has been with the bread making industry in Nigeria.”
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