No less than 40 bakeries have shut down in the Federal Capital Territory (FCT), citing high production costs, numerous taxes, and an increase in power bills, among other factors.
No less than 40 bakeries have shut down in the Federal Capital Territory (FCT), citing high production costs, numerous taxes, and an increase in power bills, among other factors. Due to operating costs and numerous taxes by several government bodies, some of the bakeries visited by NAN did not open for business.
Abumme bakery Ltd. Lugbe, Airport Road, Hamdala Bakery, Kuje, Harmony Bite Bakery, Karu, and Doweey Delight Bakery Ltd, Kubwa are among the bakeries that have closed their doors.
Merit Baker, Mpape, Funez Baker, Orozo, Slyz Bakery, and Wuse Zone 2 are among the others.
According to Ishaq Abdulraheem, Chairman of Abuja Master Bakers, FCT, it was becoming more troubling that bakeries in Abuja were unable to deal with the high cost of manufacturing.
He said that the majority of members had lost their means of subsistence, while employees had been laid off as a result of the closure.
He urged the federal government to act promptly and rein in government entities that were stifling the baking sector.
He named many entities, including the National Food and Drug Administration and Control (NAFDAC), the Standard Organization of Nigeria (SON), the National Environmental Standards and Regulations, and the Enforcement Agency (NESREA).
He said that the six Area Councils in the FCT had also made life tough for bakers by imposing high taxes and tenement rates.
Nuhu Musa of Hamdala Bakery, Kuje, FCT, an Abuja baker, has asked the government to control the operations of these bodies in order to decrease the various taxes levied on bakeries.
Mr Musa said that several bakeries were struggling to survive owing to high manufacturing costs.
“We want the government to regulate these agencies so that our production process will be easy.“These taxations are negatively impacting our business to the extent that many of us have closed down. This is also affecting employment as many bakery workers are out of work presently and you know the effect of that on the society; some will turn to criminality,’’ he stated.
NAFDAC, for example, would visit their bakeries to check for certifications, while SON will come to register the food, according to Mr Musa.
“How much are we making to warrant all these checks and payments,’’ he wondered.
Some Abuja residents who talked with NAN bemoaned the high price of bread in the market, claiming that bread was increasingly becoming a staple for the wealthy.
Julius Anthony, a local, stated that some of the bread he used to buy for N500 per loaf now cost up to N1,000. Another FCT resident, Aisha Danjuma, urged the government to act promptly to address the high cost of bread, saying, “bread is the nourishment for the people and must not be taken away from them.”