By Moyinoluwa Ojegbade
The rising cost of flour and other baking ingredients is increasing pressure on bakery operators and bread retailers, forcing many businesses to carefully manage production costs and slim profit margins.
Speaking on the challenges facing the industry, Mr. Olamide Banjo, a bakery manager in Ogun State, said the cost of flour has risen significantly, with a bag currently selling for about ₦53,000.
Banjo, who has been managing a mini bakery since February 2026, explained that bread production involves several ingredients, including flour, sugar, butter, salt, bread flavouring, yeast, and water, all of which have become more expensive in recent months.
According to him, the baking process begins with carefully measuring the ingredients before mixing them for about 30 minutes. The dough is then weighed, cut into portions, moulded, placed in baking pans, and left to rise before being baked in an oven.
After baking, the bread is cooled, sliced, packaged, and displayed for sale.
He noted that the increasing cost of baking improvers and yeast has added to production expenses. While one type of bread improver sells for about ₦2,400, a pack of yeast costs around ₦2,500.
“The prices of ingredients are very high now, making bread production more expensive,” Banjo said.
Bread retailers are also feeling the impact of rising costs.
Mrs. Seun Ogunshola, a provision store owner, said she relies on suppliers who deliver different brands of bread to her shop. According to her, retailers often add between ₦50 and ₦100 to the supplier’s price in order to make a profit.
She noted, however, that profit margins on bread sales remain relatively low compared to other provisions sold in her store.
“There is not much gain from bread sales, but we thank God for the little profit we make,” she said.
Another retailer, Mrs. Nurat Akinyemi, owner of Nlyass Stores in Ifako-Ijaye, Lagos, said she sells several bread brands, including Rehoboth Biggi Bread, Father’s Recipe Bread, and Jumbo Bread.
According to her, the prices of bread vary widely depending on the brand and supplier. She explained that retailers typically earn between ₦50 and ₦100 per loaf, depending on the product.
Akinyemi said customers frequently complain about rising bread prices, especially as loaf sizes and prices differ from one brand to another.
Despite the challenges, she described bread retailing as a manageable business for entrepreneurs who can attract a steady customer base.
She advised aspiring traders not to overlook bread sales, noting that while margins may be modest, consistent patronage can generate steady income.
Industry operators say the rising cost of flour and baking ingredients continues to affect bread prices across the country, placing pressure on both producers and consumers as businesses struggle to balance affordability with profitability.
