Why Bread Is Still Expensive Despite Falling Flour Prices

Even though flour prices have dropped with a bag falling from over ₦80,000 to around ₦55,000–₦56,000, bread remains costly for many Nigerians. The reason goes beyond flour; other imported ingredients like sugar, yeast, and butter also influence production costs.

There’s also a gap between bakery prices and what consumers pay, as distributors and retailers are often accused of maintaining high profit margins despite reduced costs.

This price disconnect is part of Nigeria’s broader food inflation problem. The average price of a 500g sliced bread jumped 89.48% year-on-year, from ₦553.03 in February 2023 to ₦1,047.86 in February 2024. While food inflation has eased to 22.74% as of July 2025, many households still feel the pinch.

According to NBS, the Nigerian bread market could generate $18.81 billion in 2025, yet without addressing distribution costs and mark-ups, bread may remain out of reach for many families.