Juliet Ajakaiye, 38, a petty trader who resides with her family in the Ajegunle area of Lagos State, has always found bread and tea an easy breakfast for her three children who have to be in school at 8:00am every weekday.
This morning, after bathing her children, she dashes out to buy bread at her regular local store close by.
“That one is N200,” says the bread vendor, pointing at the big loaf of ‘Agege bread’ in Ajakaiye’s hand.
“Haba! Mama Biodun, what happened? N200? Since when? I buy this bread from you every day. Even yesterday, you sold it for N150. Which one is N200 again? Did the price increase last night?” Ajakaiye queries, visibly shocked.
“Customer, it’s not my making. They said the price of what they use in baking bread has increased. They increased the price they sell to us, so I had to increase my price too,” the vendor replies.
Like Ajakaiye, many Nigerian families are at a crossroads as the price of bread, a staple consumed by millions for its affordability, taste, and the fact that it is ready-to-be-eaten, keeps going up.
Despite complaints from consumers that the previous rise in the price of their beloved staple created a hole in their pockets, the price of bread has witnessed yet another increase, this time by about 25 percent.
BDSUNDAY investigations revealed that the prices of bread in Lagos, Owerri and Abia State have increased. In Lagos, a loaf of bread that was sold for N250 increased by 25 percent to sell for N300, while those sold for N300 and N350 now sell for N350 and 400, respectively.
“We used to sell to distributors at N250 but recently we increased our price to N270 because of the high cost of the bread materials. The distributors sell to the consumers for N300,” said a source at Leventis Foods Limited, one of the major bakers in Nigeria.
Bread consumers across the country are irked by the price increase. Those who spoke with BDSUNDAY lamented that the pain of the price increase was made worse by the fact that it was coming at a time of general rise in cost of living amid low purchasing power.
“When the price of bread increased from N220 to N250 in February, I decided to reduce my family’s daily consumption of bread. I started buying bread thrice a week, but now it’s N300!” Emmanuel Amadi, a civil servant in Port Harcourt, lamented.
“This is one meal that used to be affordable for even the beggars on the streets but middle income earners like me are no longer finding it easy to buy bread. My salary which is not even regular has not increased and there are so many things to do with the little at my disposal,” he said.
Jude James, another resident of Port Harcourt, lamented the increase in the price of bread, saying it was an unfortunate development.
“The size of bread that I used to buy for N300 is now N350 and the size sold for N200 is now N300. The quality loaves like Digestive that was N350 is now N450,” James told BDSUNDAY.
Martins Anyanwu, a resident of Owerri, the Imo State capital, could not hide his annoyance as he questioned the justification for the increase in bread prices in spite of noticeable drop in its quality and quantity.
“The price of bread now is just too high. Whatever the reasons are, I think both the bakers and the sellers should realize that the times are hard. Very soon, they would be forced to consume their bread alone because people will stop buying. Why increase the bread and reduce the quality and quantity? Do they want Nigerians to go hungry?” Anyanwu fumed.
BDSUNDAY investigations revealed that the increase in the price of bread could be attributed to the high cost of raw materials used for bread making such as flour, sugar and butter.
BDSUNDAY investigations revealed that the increase in the price of bread could be attributed to the high cost of raw materials used for bread making such as flour, sugar and butter.
A market monitor in Lagos, Port Harcourt and Owerri showed that the prices of these raw materials have increased tremendously in a space of two weeks.
A survey at Mushin market, Lagos, a week ago showed that a bag of sugar which sold for N10,500 is now N11,900, while a 50kg bag of flour is now N10,000 instead of N9,100. The price of a 10kg Golden Gate margarine which sold for between N6,000 and N6,500 now goes for N7,000.
A survey at Mushin market, Lagos, a week ago showed that a bag of sugar which sold for N10,500 is now N11,900, while a 50kg bag of flour is now N10,000 instead of N9,100. The price of a 10kg Golden Gate margarine which sold for between N6,000 and N6,500 now goes for N7,000.
“Two days ago, I bought a bag of sugar N10,500 but yesterday I bought it for 11,900. So, I increased the price I sell a custard bucket of sugar from N900 to N1,200. Some customers buy while others complain and walk away,” Funmi Adekoya, a trader at the market, told BDSUNDAY.
At Mile 1 market, Port Harcourt, the prices are slightly higher.
“Just this week, I bought a bag of sugar for N10,800 instead of N9,600. The 10kg bucket of topper butter I usually bought for N7,500 is now N9,500 and even the small custard bucket of sugar that I sold for N1,000 is now N,1300,” said Glory Nwosu, a trader at the market.
“Just this week, I bought a bag of sugar for N10,800 instead of N9,600. The 10kg bucket of topper butter I usually bought for N7,500 is now N9,500 and even the small custard bucket of sugar that I sold for N1,000 is now N,1300,” said Glory Nwosu, a trader at the market.
As at last week, the prices of sugar in Kano and Onitsha were N11,080 and N10,850, respectively, while the price of flour was N9,800 and N9,900, respectively.
Jacob Adejorin, chairman, Association of Master Bakers and Caterers of Nigeria (AMBCN), said the price of bread might still go higher soon because of the increase in the cost of its components.
“The price of sugar has not been stable. Last week, we bought a bag for N11,400 but few days later, we bought the same bag for more than N12,000. The price of all the flour is N9,500 with the exception of Honeywell Flour which has increased to N10,000 but this increase did not affect the price. We are still managing the situation for now but we would likely increase the price soon,” he said.
Jacob Adejorin, chairman, Association of Master Bakers and Caterers of Nigeria (AMBCN), said the price of bread might still go higher soon because of the increase in the cost of its components.
“The price of sugar has not been stable. Last week, we bought a bag for N11,400 but few days later, we bought the same bag for more than N12,000. The price of all the flour is N9,500 with the exception of Honeywell Flour which has increased to N10,000 but this increase did not affect the price. We are still managing the situation for now but we would likely increase the price soon,” he said.
“These are hard times, why must we punish the consumers by increasing the price? We haven’t increased ours by even N1 because we are putting the consumers into consideration,” he added.
Tajudeen Ibrahim, team head at Chapel Denham Hill, had earlier told BDSUNDAY that the soaring sugar prices would further deepen the woes of raw sugar importers.
“The major concerns for the broad economy are two. The first is a further pressure on FX as sugar refiners will demand for more US$ to import raw sugar as prices increase. The second is higher food inflation as the relevant companies pass input cost increases to consumers in Nigeria,” he said.
“The price of sugar increased as a result of the change in foreign exchange,” said Sule Abdullahi, acting group managing director, Dangote Sugar Refinery.
“The price of sugar increased as a result of the change in foreign exchange,” said Sule Abdullahi, acting group managing director, Dangote Sugar Refinery.
CHINWE AGBEZE
