Cost of starting a bread bakery in Nigeria

how to start bread bakery business in nigeria

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Is Bakery Business profitable in Nigeria?

In Nigeria, the bakery industry is lucrative, and young people who desire to work in the industry have several chances. As we have already stated, one of Nigeria’s most promising sectors is the bakery industry. It should come as no shock that Nigerians consume many baked goods, particularly bread. The quickest and simplest meal to prepare is bread. Zero preparation is necessary on the side of the customer to enjoy bread.

How can I start a small bakery business in Nigeria?

Possessing a flair for baking is not enough to establish a bakery business. It requires business knowledge to make income, perseverance, continuous effort, and solid project managerial skills, given the volume of bread that needs to be made every day.

The bakery industry encompasses more than just the production of bread. Other treats can also be made, including doughnuts, cakes, and finger snacks. However, baking bread is the most typical.

You must have enough money to establish a bread bakery business and to purchase the necessary tools. Even though it doesn’t require a lot of money to begin a bread business, necessary equipment must be available for ease. Here are the important steps you need to make when you decide to start your small bakery business in Nigeria:

  • ·       Seek professional Training

You should first acquire baking expertise if you wish to open a bakery. Applying to a catering institution, where you will receive training on operating on a more professional standard, might increase your knowledge and skills if you’ve been a baker.

You can still choose to enroll in a catering class and learn how to bake effectively from start to end, even if you are not into baking and have no prior expertise in the field. Industrial baking is very completely separate from baking for your household or yourself. You will learn about food processing through formal Training. This will assist you in comprehending the nuances of the food industry. Your level of expertise in the baking industry may determine whether you perform effectively in the catering industry.

  • ·       Write an Extensive plan for your Business.

The idea of beginning a business might be thrilling, but you must proceed carefully. A thorough bakery business plan should be written before opening a bakery in Nigeria. A thorough company strategy will aid your ability to address issues and difficulties you may face in the long term.

The corporate strategy, the kind of bakery, the items to be marketed, and the price ranges will all be outlined in a solid business plan.

  • ·       Strategizing and establishment

 Your business plan should cover a variety of topics in an attempt to build a profitable bakery, including finances, consumer accessibility, market growth, firm geographic area, organizational structure, and administration.

  • ·       Capital

Depending on how much you would like to launch your bakery business, you’ll require a certain amount of funding. It would be best if you only had enough to buy the necessary tools to get going. However, the profit from a bread business increases with the amount of money invested.

  • ·       Select a suitable geographical Location

A bakery business needs a decent location. A bakery should be situated in a city or town and readily available to retailers. There won’t be enough opportunity for expansion if a bakery is situated in a rural place because it would be hard to find. The site of a bakery is crucial and can influence whether it succeeds or fails. A bakery should be situated in a clean and convenient environment. You need to seek a nice workstation if you wish to expand further than a household bakery.

  • ·       Identify your Specialty

In the business strategy, you must specify the baking area you will concentrate on. You will be better able to prepare for the future if you write down your plans. Included in this is the bread or pastries you intend to offer. In this, remember to leave the area for development and advancement.

  • ·       Potential Customers

Your objective demographic, or the type of customer you anticipate would frequent your Business, as well as their location and how you plan to reach them, must be mentioned in your bakery business plan.

  • ·       Cash flow Analysis

No business enterprise, regardless of how small, can exist without investment funding. Due to this, you would need to talk about how you plan to raise money and how much you look forward to making over the long term.

  • ·       Write out your goals.

To succeed in your bakery operation, you must create attainable objectives. Setting your targets in written form can help you maintain your commitment to completing them within the allotted time.

  • ·       Tactics for marketing

Because of the intense competition in the bread industry, marketing techniques cannot be taken lightly. You must prepare and learn to be one step ahead of your competitors.

  • ·       Get your Business registered.

You need to sign up your bakery with the corporate affairs commission. All you need to do is think of a unique, confirm that it is still readily accessible and has not already been licensed by another company, and have it enrolled. In this process, you will also require a NAFDAC permit because you will deliver food to the general populace.

Cost of starting a bread bakery in Nigeria

The cost of starting a bakery business in Nigeria depends on the type and scale of the bakery you intend to set up. To set up a huge bakery in Nigeria, you must prepare between N5 million and N9 million. Still, if you don’t want a bakery on such a large scale but a standard size bakery, it will cost you between N400 000 and N800 000, including equipment.

Equipment needed to start a bakery in Nigeria.

Here is the major equipment you need when setting up a bakery in Nigeria:

·       Baking Oven

To make bread, one uses a baking oven. You can purchase the industrial baking oven that skilled bakers use to produce large amounts of bread. Although pricey, an industrial baking oven makes things easier.

·       Slicing Machine

You must get a slicing machine if you plan to manufacture sliced bread. In the Nigerian market, sliced bread is the most preferred and frequently bought type. It could be simpler to distribute inside the household for this reason. Making sliced bread will increase your income.

·       Baking Pans

You might have to purchase or create baking pans based on your requirements. Baking pans are included with certain heavy ovens, though. After using them, take time to tidy your baking pans carefully.

·       Flour Mixer

The flour mixer is used to combine flour and other components for pastry. You can choose to get any of the two types of mixers: conventional electronic mixers and local mixers. They are both effective, so you can purchase any that works well with your budget.

·       Bread Wrappers

Wrappers are provided by professionals that focus solely on this field. You ought to have a source of wrappers available, also popularly referred to as nylons. Before your bakery business starts to make products, ensure you have a contract in place with a supplier of wrappers. Bread wrappers will always be available, thanks to this.

·       Durable Generator

A generator is necessary for the Nigerian bakery industry. It would be best if you had a sizable backup generator to guarantee quick and reliable output in your bread business.


Ensure you hire seasoned employees to operate as bakers, flour mixers, and molders. Others include transporters, bread pan lifters, cleansers, and oven workers. Preparing outstanding bread that meets requirements and competes competitively with other items on the market requires these tasks.

Also, to make tasty and nutritious items, you need to conduct research and analyze market dynamics. If you invest time in developing healthier options for fatty snacks, this new market could save you a lot of money. Be receptive to feedback so you can improve, gratify your consumers, and provide them with a ton of contentment.

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