Half of Premium Bread Bakers Shut Down in Two Years

In a challenging economic climate, nearly half of the premium bread bakers in Nigeria have closed shop in the past two years, according to the Premium Breadmakers Association of Nigeria (PBAN). The association attributed the shutdowns to rising energy costs, poor access to affordable financing, and high operational costs.

The PBAN’s revelation paints a grim picture for the premium bread sector, which has been facing increasing competition from cheaper alternatives in recent years. The association’s president, Mr. Johnson Onwuchekwa, lamented that the situation had become unsustainable for many bakers.

The closure of these factories not only affects the livelihoods of the bakers but also the jobs of thousands of workers employed by these companies. The PBAN estimates that over 20,000 jobs have been lost in the sector since 2024.

This development comes at a time when the cost of living in Nigeria is on the rise, with inflation reaching an all-time high of 18.1% in October 2026. The rising cost of goods and services, coupled with the high cost of energy, has made it difficult for many businesses to survive, especially those in the food sector.

According to the Central Bank of Nigeria (CBN), the Manufacturing Purchasing Managers’ Index (PMI) stood at 53.5 index points in October 2026, indicating a slight expansion in the manufacturing sector. However, the PMI for the food subsector declined to 52.4 index points, indicating a contraction in the food sector for the second consecutive month.

The shutdown of premium bread bakeries is a worrying trend for the Nigerian economy, especially as the country prepares for the upcoming elections in 2027. The loss of jobs and the increase in the cost of living are likely to impact the political landscape, with many Nigerians expressing concern about the country’s economic future.