How to Start A Profitable Bakery Business In Nigeria

Woman baking - How to start bakery business in Nigeria from home
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Truth be told, I really cannot remember how my first taste of bread was like, but I vividly remember mei shai bread and egg, it is not like I had any basic idea of what bakery business was all about.

Mum gisted me of the story of a covetous person in the family that was fed excess bread (reminds me of that film where that boy was mandated by the wicked principal to eat that mountain of chocolate)

…Back to the matter…that story implied bread had been before I was born. How it got to Nigeria and became the centre of bakery business in Nigeria? That, I wonder.

how to start bakery business - man baking bread

What Is Bakery Business In Nigeria?

Say bakery business in Nigeria and what pops up in most people head is bread, the most consumed baked product that has become a staple food in the country, accessible by all classes in the society.

How many questioned what had been read earlier despite knowing the topic was on bakery business? Oh oh, I see.

In actual sense, bakery business involves the production and sale of baked flour based foods not exempting pastries, cakes, cookies, from the likes of bread.

Baking skills were said to have developed during the Imperium Romanum (the aftermath of the “roman republic period of the ancient roman civilization, a time when Rome was ruled by multiple emperors”).

Just as the love and demand for baked goods are on the high so was it then, so much that it was requested for very often.

It did not come as a surprise when it could qualify as a profession or trade around 300BC among the Romans

Bread in oven - bakery business in Nigeria

Not yet established as some big bakery businesses we see in the country today, history tells of how baking of bread, especially, was done in ovens in the comfort of homes.

The ever growing demand for baked flour based foods prompted the establishment of the first bakers’ association in Rome around 168BC; today we have association of Nigerian bakers.

Nothing profitable stays personalised for long and so the business side of some amongst other possible things kicked in, promoting bakery business in Europe.

Not quite long the aroma of baked bread filled the air in the eastern parts of Asia. It was not strange to see bread and other flour based foods sold on the streets…bakery business, if you ask me.

The growing bakery business did not stay at that, but instead, upped its game and started deliveries, just as you see that bread cars or buses are packed in front of canteens, supermarkets, and mei shai to supply loaves of bread, and of course the higher the demand, convenience came with ordering baked foods.

Did you know that the first sliced bread was introduced and sold on the 7th of July, 1928 and the bread slicing machine was invented by Oth Frederick Rohwedder.

Otto_Frederick_Rohwedder Creator of bread slicing machine
Inventor of Bread slicing machine – Otto Frederick

The new invention and development in the bakery business was cool but had its shortcomings, which was adjusted to; although, some of us still trust the whole bread to the sliced one that stales faster.

Then came the devastating world war II and even bakers were recruited to join the war…I mean why else would there be absence of experts in the bakery business after the war?

The bakery business would not sit back and fold hands so it picked up its scraps and made do with them.

New methods were developed to meet the ever growing demands of the people, hence, the addition of chemicals to dough, use of pre-mixes and the likes; driving the traditional baking methods in to the shadows completely with the new methods adopted as necessary financial wisdom.

All these happened before the birth of bakery business in Nigeria. Bakery business in Nigeria is termed production of bread in the country.

sliced bread bakery business

You realize you cannot count the bakeries in Nigeria on your toes and fingers; despite the fact that as some are entering this bakery business, some are taking their exits, leaving imaginations to do their thing but in the midst of it all, the question pops up…

Is Bakery Business Profitable In Nigeria?

For some families, bread is non-negotiable for breakfast just as Sunday jollof rice. Yes, it’s one of the top 40 popular Nigerian food that many can’t miss for anything.

You go to the park to make use of public transport and wonder at the number of bread sellers with the mountain Kilimanjaro of bread in front of them.

Then you hear ‘mummy, daddy, aunty mi, bros, fresh bread fun ile o’…they even go further to tell you that the children at home will ask what you brought for them so buy ka ri ile bread.

You take a stroll in the evening and see the aboki arranging the length and breadth of his table with loaves of bread of different sizes, and you are like ah ah, will he sell all like this? Abi he no go close again?

Then you remember the previous night you went late he told you to get bread elsewhere as he did not have any to sell for that day.

bakery machine and bread mixer

You sit down and think how many people eat bread in Naija? The fact is more than 60% of 199,783, 091 Nigerians.

More curiosity, how come? Truth is because it is a cost effective food that is accessible to all classes in the society. You can still get a loaf of bread for as low as #70.

Please do not stand up yet, bread is a baked flour-based food that can be taken on any occasion while some are eating it in the morning, some at brunch, and others at lunch with a bottle of coke or at night.

Imagine that figure of potential sale multiplied by whatever little profit in a day, not to talk of a month, talk less of a year and years.

Even if you make such profit, everything will go back to the loan you took to start the bakery business but the truth is you do not compulsorily have to take a loan that will keep sinking you.

How about starting small? The next question should be…

How to Start Bakery Business From Home In Nigeria

History can stand at the witness box to testify that baking business can be started from home instead of getting wrinkles on the face and a splitting headache on how to get land or lease a place to set up your bakery business.

How about starting that bakery business from home?

soft bread in Nigeria

The bakery business is not easy neither is it hard or slightly difficult, it is what you are dealt with.

Looking at it, logistically speaking, it is not so easy to start a bakery from home considering the fact that producing on a large scale is way better and more profitable, but what is gain without pain?

It has been reported that “#80 will produce one sliced bread in the country”.  Now the bakery can decide to sell to retail sellers at the “unofficial regulated price” of #170, a profit of #90 has been made.

Case A     

Loaves produced = 20.

Cost of production = 80.

Cost of 20 loaves = 1600.

Sale of 20 loaves = 3400.

Profit = sale – cost = 3400 – 1600 = 1800.

The bakery can decide to sell to suppliers at the ‘stable’ price of #130, a profit of #50 made.

Case B

Loaves produced = 20.

Cost of production = 80.

Cost of 20 loaves = 1600.

Sale of 20 loaves = 2600.

Profit = sale – cost = 2600 – 1600 = 1000.

You do know you will not just produce a loaf of bread but more, even though a ‘standard thriving bakery’ is said to produce and sell 7, 000 loaves a day.

If you are starting bakery business from home, you still need all necessary things in place.

The higher the number of loaves, the more the profit; either ways, how about I tell you more important stuffs like…

Steps On How to Start a Bread Bakery Business

No matter how your brain is buzzing with ideas, you do not jump into one without proper planning. Else, you are back on your knees, same with bakery business.

It has some protocols to be observed to succeed at it; these protocols are the steps on how to start a bakery business in Nigeria.

1. Knowledge

As said earlier, it is important to know what you are getting into before jumping into it, else you find yourself jumbling things up.

First thing to do when you want to start a bakery business either in Nigeria or outside is to get adequate knowledge on the bakery business.

“Get informed so you do not get deformed”, so they say.

It would be an advantage to get practically trained in the bakery business and not just theoretically trained.

They also say ‘first you learn then you earn’. When you roll up the sleeves to do the main work, you will be handling things as someone who has done not one who has been told what to do.

The training sheds more light on things you are to do when starting the bakery business, the equipments you are to get first, the baking materials, kind of licence to get and the standard requirements of a loaf of bread, what affects the texture and appearance of bread and lots more.

Remember you can be a boss without learning.

Also Read: How to start a sheep and goat farming investment in Nigeria

2.Business plan

You cannot step out from your house to start a journey without knowing where you are going especially if you have never been there.

A good business plan is a foundation upon which a successful bakery business is built on, just as a good house can be traced to a good plan and foundation.

Especially, if you plan on getting a loan from the bank you must draft a business plan or proposal for the bakery business you want to start.

The business plan tackles areas of location, cost of equipments like generator, oven, etc and more.

Also Read: How to write a business proposal that gets selected

3. Capital

Now that you know what you getting into, how about we talk about the money you want to use to start the bakery business in Nigeria.

It is certain that from your business plan you already know the cost of the equipment required, and other things you are getting for the bakery business.

So tell me, what is your estimated total cost? How can you raise this amount of money? Do you have up to that in your account or are you getting a loan? Or do you have someone that wants to invest in your bakery business?

Must Read: How to get quick cash loan online to finance your business

4. Location

Wherever your bakery will be, ensure it is somewhere accessible to your target market. In as much as it is to be in urban areas try to stay far but not too far from residential because of air pollution, noise, else you might have to move or shutdown.

5. Equipment

For someone starting a bakery business, the following are important at the initial stage:

  • Oven, either local or industrial.
  • Mixing machine although you could make do with hand mixing for a start.
  • Kneading machine.
  • Generator (local and modern) is non-negotiable for the bakery business considering the epileptic state of electricity in the country.
  • Baking pans and nylons, etc.
  • Baking materials like flour, bread improver, preservatives, etc.
  • Staff: Minimum of 4 persons (baker, semi-baker, apprentice, cleaner) that can work effectively with division of labour.
  • Truck is necessary but not compulsory.

6. Registration

Get registered under the necessary bodies, join the bakers association, and do not forget you will pay dues annually.

Now your bakery business is good to go.

Also Read: 8 business ideas for fresh graduates in Nigeria

Bakery Business In Nigeria (Summary)

The bakery business is not easy to start, gone were those days when it was said to be an enormous profit making business as cost of ingredients are going up the roof.

Today, the competition is increasing daily as the numbers of bakeries in the country are not dwindling.

To be successful in the bakery business in Nigeria, you need to stand out, make use of quality ingredients, NAFDAC approved preservatives and bread improvers, do not cut corners and you will see you will be known for quality amongst others.

You might not make it big at once but have you forgotten ‘Rome was not built in a day’?

Aurora is a contributing writer at Oasdom.com. With a deep interest in researching and finding solutions, Aurora hopes to share her work with all oasdom fans and visitors.

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