Cost of Starting A Bakery in Nigeria (Complete Rundown on Expenses)

Cost of Starting A Bakery in Nigeria (Complete Rundown on Expenses)

What does it take to launch a bakery in Nigeria? Bread is one of the most consumed food items in the country.

In fact, I Googled the most-eaten foods in Nigeria and bread was part of the second group. The funniest thing actually is that these bread are not so expensive to make and like every other product, you can work on your budget.

What Does It Take To Start A Bakery In Nigeria?

Before you continue, for all your baking accessories and consultations, I would recommend Fexicon Engineering.
They have worked with a good number of customers in and outside Nigeria in the sales and installations of bakeries and I would give them a 5-star every day.

What does it take to launch a bakery?

Launching a bakery can take anything from ₦700,000 to even more than ₦10 million, depending on the scale you are targeting.
Asides from the initial running costs like paying of staff and powering the start-up, here are some of the major expenses you will make;

Deck oven – ₦1 million+
Tabletop slicer – ₦300,000+
Dough mixer – ₦500,000+ depending on the size

You will also need transportation vehicles, an alternative power source and to set up a structure if you don’t have that already.

Please note that these prices might differ from what you will get from the market and were only put to give a hint of what you’ll be expecting.

Step-by-Step Guide To Starting A Bakery

Plan:

This is possibly the most important stage and you need to take it very seriously. No one would want to start something and not finish, at least not an adult.
If you don’t have enough capital you can go into pastries or other high-profit businesses.

Develop a Business Plan:

Work on your business plan to know what it will take to start the business at the capacity you are dreaming of. If it is something you would need professional help on, you can hire us to do that.

Get Registered:

The CAC and NAFDAC registrations are very important for your bakery so you don’t get into trouble with the government. There are also baker unions which might not be compulsory, but necessary.
There would be times when issues will come out and you’ll need union action to fight for yourself or other members.

Secure a Good Location:

You will need a physical location where people can easily step in to make their purchases. Bakeries can also take small or large spaces depending on the scale you are starting on.

Hire workers:

You can begin with 3 to 10 workers depending on your scale. You do not need much people when starting a bakery in Nigeria, especially when you are doing small scale.

Get the needed Equipment:

You can get most of the equipment you need from Fexicon.
Some of the things you need to get your bakery running include:-

  • Ovens
  • Production pans
  • Tables
  • Moulding machines
  • Mixing machines
  • Bread slicer
  • Disposable hand gloves
  • Generator
  • Carrying pan etc

I have also dropped the estimated costs of some of this equipment.

Conclusion

There are many businesses you can do in Nigeria and they all require capital. If you’re considering going into the baking of bread, I will advice you to go learn the business first.
It will help you build the right channels of distribution, minimizes losses by trial and error and help you make more profit.

Before you leave, check out the dollar exchange rate for today.

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