About 40 per cent of breadmakers operating in the premium category have shut their factories in the past three years amid economic challenges.
According to Vanguard, the Premium Breadmakers Association of Nigeria disclosed this, attributing the situation to rising energy costs, poor access to affordable financing and inadequate government support.
The association warned that the challenges were threatening the survival of businesses and jobs in the sector.
PBAN President, Engr. Emmanuel Onuorah, spoke on the sidelines of the association’s 2026 Day-Out event in Lagos yesterday.
He said the association’s theme, “Baking Through the Economic Storm: Innovation, Efficiency and Growth for a Sustainable Industry”, reflected the difficult operating environment. It also reflected the need for innovation, creativity and efficiency to sustain the industry.
He said: “The past years have been very tough. Words cannot even express how we feel. Our businesses are struggling, businesses are going down, and members are closing. In the last two years, we have lost close to 40 per cent of our membership to economic pressures.
“Energy is killing businesses. We are trying to innovate, be creative and improve efficiency because, without efficiency, there is no way we can remain in business.”
Onuorah is a petroleum engineer with 25 years’ experience in the oil and gas industry. He said the association was exploring alternative energy sources, including a hybrid system that would allow bakeries to switch between diesel and Compressed Natural Gas (CNG).
He put the cost of transitioning a small bakery to the hybrid system at between ₦40 million and ₦50 million. He described the huge capital requirement and inadequate CNG supply as major obstacles.
He also disclosed that PBAN had explored solar energy solutions but abandoned the initiative. The proposed financing arrangements, he said, would cost more than what members currently pay for electricity.
The PBAN president faulted the financial system for failing to provide affordable credit to businesses in the real sector. He alleged that government-backed intervention loans were largely inaccessible to genuine operators.
According to him, he sought a loan of ₦12 million to convert the lighting and air-conditioning systems at his facility to solar-powered alternatives. The bank asked for a 34 per cent interest rate and a 20 per cent counterpart funding requirement.
“How do you expect small businesses to survive with interest rates of 34 per cent? We are not asking for free money. We are asking for single-digit interest rates that businesses can realistically repay,” he said.
He also questioned the effectiveness of government intervention programmes for small businesses. He argued that politically connected individuals benefited more than genuine entrepreneurs.
Onuorah called on the Federal Government to provide grants and affordable financing to support energy transition in the bakery industry. He stressed that sustainable energy remained critical to business survival, employment generation and economic growth.
