In a decisive move that underscores the growing unrest among Nigeria’s small business sector, the Kogi State chapter of the Association of Master Bakers and Caterers of Nigeria (AMBCN) has declared its readiness to commence a nationwide strike from Feb. 27. The announcement was made by the state Chairman, Adeniyi Bamidele Gabriel, during a press conference in Lokoja.
The decision to go on strike stems from a detailed statement issued by the National President, Mansur Umar, and the National Secretary, Jude Okafor. They outlined the association’s grievances, highlighting the dire state of the baking industry due to the skyrocketing costs of essential baking ingredients and operational challenges. These include the prices of flour, sugar, yeast, vegetable oil, and the increased costs of petrol and diesel following subsidy removal and forex deregulation. The association also lamented the burden of multiple taxation from various levels of government and the overall hike in the cost of doing business in Nigeria.
The bakers’ association has put forth several demands to alleviate their plight. These include the liberalization of flour and sugar importation, the reduction or removal of import duties on critical baking materials, and the provision of concessionary forex rates to key industry stakeholders. Additionally, they are calling for the development of local wheat and sugarcane cultivation and processing, the removal of multiple taxation, the implementation of financial support palliatives promised post-COVID-19, and the suspension of all forms of taxation on the bakery industry. The association also seeks the establishment of a price control and monitoring committee to oversee the sector.
The strike, as announced, is a total withdrawal of services, signaling a significant disruption in the bakery industry, which could lead to bread shortages and impact the food supply chain across the nation.
This move by the Kogi bakers reflects broader economic challenges facing Nigeria, where businesses, especially SMEs, are grappling with rising operational costs and regulatory burdens. The strike not only aims to draw attention to the specific issues faced by bakers but also serves as a call to action for the government to address systemic problems affecting the ease of doing business in Nigeria.
The association’s demands for policy reforms, such as the liberalization of import policies and the reduction of tariffs, underscore the need for a more supportive environment for businesses to thrive. The call for the development of local agriculture for wheat and sugarcane also highlights the potential for Nigeria to reduce its dependency on imported goods, thereby stabilizing prices and encouraging local production.
Furthermore, the demand for the removal of multiple taxation and the implementation of promised financial supports reflects the critical need for a more coordinated and supportive fiscal policy framework to aid businesses in recovering from the economic impacts of the COVID-19 pandemic and the ongoing global economic challenges.
As the strike date approaches, the impact of this action will be closely watched by industry stakeholders, policymakers, and the Nigerian public. The outcome of this protest could set a precedent for how similar grievances are addressed in the future, not just in the bakery sector but across the SME spectrum in Nigeria. The government’s response to these demands will be a critical test of its commitment to fostering a conducive business environment and supporting the growth and sustainability of the nation’s economy.
Business Day, renowned for its in-depth coverage of the Nigerian business landscape, continues to monitor this developing story, providing insights and analyses on its implications for the economy and the wider society.
