Nigerian Price

You are here: Home / Small Business / Cost of Starting a Bakery in Nigeria (2020)

Cost of Starting a Bakery in Nigeria (2020)

by 92 Comments

Share36
Tweet
36 Shares

You are reading this post because you are probably considering going into the bakery industry and interested in knowing more about the bakery market. Either way, you are in the right place; on the right page; and yes, with the very right idea. Ideas sell in Nigeria and with the right information, you can be sure to be among the top people in whichever area you have decided to invest in. So, let’s get started.

It is no hidden fact that the bakery business is one of the most lucrative businesses anyone can get into in Nigeria. It is easy to see why a lot of bakeries have emerged in the country over the past 10 years. While some people have made it big time in the industry, some others still find it difficult to find and stamp their feet in the market. The demand for baked products will always be on the rise, so is the need for more bakeries. Bread, cakes, and other bakery-related foods/snacks are rated among the most in demand in the market.

cost of starting a bakery in nigeria

If you are among those that thing starting up a Bakery comes cheap, then you have either been fed with wrong information or have decided to ignore the obvious. Truth is, starting a bakery doesn’t come cheap. In fact, they are among those businesses you venture into with some basic capital.

Don’t get this wrong, you can start a mini bakery for with a low as a hundred thousand naira or even lower, but be sure it might not go beyond the name and level – mini. You will need a minimum of N500, 000 – N700, 000 and as high as N6 million, depending on the size and scale you want, to start a proper and standard bakery in Nigeria.

In this post, we will take a look at the estimated amount and the processes involved in starting a bakery in Nigeria.

Processes and Cost of Starting a Bakery in Nigeria     

It is not enough to have that idea to start a bakery business in Nigeria. A bakery business requires proper planning and setting up of right strategies, including putting the right things in place at the right time. Starting a bakery is not a very difficult thing to do, sincerely, and the processes involved redirect, straightforward and provided things are done accordingly, less stressful and fun. Bakery business is a top one and a steady goldmine that can easily make one a millionaire.

Prices of Main Bakery Equipment in Nigeria

  • Deck Oven (1 bag) == N900,000 – N1,000,000
  • Dough Mixer (1 bag) == N1,200,000 – N1,300,000
  • Dough Mixer (25kg) == N450,000 – N500,000
  • Tabletop Slicer == N250,000 – N300,000

Do you need high quality bakery equipment in Nigeria? Then we recommend Gbola Azeez Technical Services @ 26, Olusoji Street off Afariogun, Oshodi, Lagos.

gbola azeez

 

Deck Oven
Deck Oven (1 bag capacity)

 

dough mixer
Dough Mixer

 

tabletop slicer
Tabletop Slicer

 

rotary oven
Rotary Oven

 

gravity slicer
Gravity Automatic Slicer

 

dough divider
Dough Divider

 

dough moulder
Dough Moulder

Deck ovens vs. rotary ovens

Deck ovens are of single-phase capacity and their output capacity is minimal. A deck oven can contain a maximum of 45 loaves at a time.

A rotary oven, on the other hand, uses 3-phase power supply and its ignition is diesel-powered. A one-bag rotary oven can take about 90 loaves at a time. Your choice of the oven would depend on the size and output capacity of the bakery you’re planning to set up.

Tabletop slicers vs. gravity slicers

A tabletop slicer slices a loaf of bread at a time, and it’s used by hot bread shops and mini bakeries. A gravity slicer is used by bigger, commercial bakeries, as it can slice as much as 20 loaves of bread per minute. While tabletop slicers work with single-phase power supplies, gravity slicers work with 3-phase power supplies.

Do you need high-quality bakery equipment in Nigeria? Then recommend Gbola Azeez Technical Services @ 26, Olusoji Street off Afariogun, Oshodi, Lagos.

gbola azeez

Starting a Bakery Business: Step by Step Guide

Let us now take a look at the processes involved and the estimated price of starting a proper and standard bakery in Nigeria.

#1. Plan

This stage costs nothing but is often among the most important processes of all. This is where the work starts. As easy as this sounds, planning how you want your bakery to be, the size, the process, the means of getting the capital (if you don’t have already) and deciding on the kind of bakery you want can be really tasking. It involves a lot of things to consider including the location of your bakery and how you plan on running it when it eventually starts.

Do you want to starts as an online bakery where people just order online and you deliver without actually having a structure in that regards? Do you want to start a counter bakery where people come and purchase from the counter? This is a very important stage when starting a bakery, or in fact, most other businesses in Nigeria. You should also consider getting trained. Although this is not compulsory, given that you might not be the one in charge of the technical aspect of the business, it is sometimes necessary to have a basic idea of the operation and know how to go about it.

#2. Develop a Business Plan

This is the part you put your plans in a written form. Like most other business, a bakery business needs a well-written business plan. We will not dwell so much on this because the first part covers most details that should be involved in the business plan.

#3. Get Registered

You need to be registered with the national bakery association to be an official member of the association and register your bakery. Since you will also be dealing with what people will eat, you need to be registered with NAFDAC to avoid being disturbed by the federal government.

#4. Get Started

This is where the work begins. Since this is the part you start spending money, we will start the estimation from here. To make this process easier, we have estimated the necessary steps to take to set up your bakery.

#5. Secure a Good Location

If you have opted against online bakery, you need to choose a location that is close to the target market. Location wont e a real barrier provided you have a stable means of transporting your baked products to the target market. It is difficult to estimate an amount for location. Prices depend on the area and `other major factors. Location rent is relative.

#6. Hire Workers

Even if you will be involved in operations, you will still need workers. Depending on how big the bakery is, you will need a minimum of 5 to 10 workers. You should just go for random workers because you want to cut cost, for a start, go for experienced workers in that area of operation for maximum efficiency.

#7. Get the Equipment You Need

Bakery requires some core equipment that are necessary for the operation. Here are some of the equipment needed in a Bakery.

  • Huge Ovens (Minimum of 2, depending on the size and scale of the bakery)
  • Big Tables (Minimum of 3)
  • Mixing Machine
  • Moulding Machine
  • Production Pans
  • Disposable Hand Gloves (For workers)
  • Bread Cutter/Slicer
  • Worker’s Uniform (Optional)
  • Carry Pan
  • Generator

The current prices of some of this equipment have been listed above.

Overall Estimate

It is actually difficult to make an exact estimate of how much you will spend when setting up your bakery. This will be based on your personal plan and the type and scale of bakery you are looking a. This post highlights the major things you need and the steps you need to take when starting a bakery business. Based on past experience and people’s testimonies, you will need a minimum of N700, 000 to start a bakery business. On average, one needs to have between N1,000, 000 – N5,000,000 depending on the scale of the business.

Check the Cost of Starting Other Businesses in Nigeria

Comments

    • Thanks for the useful information, but can you specifically state the current prices of equipments and best market to source for them.

      Reply

    • Kindly go through the post above again to see the informations you requested for…… Thanks

      Reply

  4. Thanks a million for this information… You have really shed .ore light on the business. Please do assist in getting the prices on equipment and the contact of genuine distributors of the equipments.

    Reply

    • Thanks a lot for such a great information in time like this,
      Can such business kick start from my room without any formal notification to authority and other association for a while

      I’ll be glad when responded to
      Also, I’ll llike to know the measurement procedures
      Regard

      Reply

  6. Thanks alot, what a wonderful and realistic information you just shared with us. But I will love to know the cost of each machine and a reliable distributor, if possible in Lagos.
    Razak tekobo
    raza*91@gmail.com

    Reply

    • Kindly go through the post above again and see informations as regards the cost of equipments and supplier…. Thanks

      Reply

    • Kindly go through the post above again and see the cost of equipments and the distributor as requested

      Reply

  10. Starting up a bakery might come with one or two hiccups and Dats y we are here to take dem off u. Kindly contact us as we are into sales, installation, repair and maintainance of bakery, kitchen and cake and quipments. We are also into consultations for starters in d bakery industry.

    Reply

  11. Thank you for this piece.please do help with cost list and where best to buy the equipment s needed for starting a bakery

    Reply

  12. thank you for your information on bakery business, am planning to start a bakery business at the end of this year. am planning to invest 1 million naira and i dont have a clue in baking and intend going for training before starting. i want to know if 1 million can acquire all the the equipment and start the business.

    thank you hoping to hear from you soon

    Reply

  16. Thanks for giving me an insight in Bread Bakery. Please give the prices for all the equipment where to get them.

    Reply

  18. Thanks for the information. But please can you help with the cost list and where best to buy the equipment needed for a bakery

    Reply

  19. We are importers of commercial Kitchen equipment in Lagos, Nigeria. Please call or whatsapp 07066***92 for complete line of commercial baking equipment and industrial kitchen equipment. We waybill to any part of Nigeria.

    Reply

  20. Any one ready to kick start a bakery business. Call me on this no 07062787870 for consultation and how to make beautiful homemade bread with long shelf life without preservatives.

    Reply

  23. Very insightful write up.
    Can I have your contact number as I still have some salient enquiry about this business.

    Regards
    Emmanuel

    Reply

  24. Interested, I will like to know more on this information and the cost of the equipment also the process to take. Thank you.

    Reply

  29. Enlightened information, and I have gone through this information over and again, and I didn’t see any contact information.

    Reply

  31. having gone through your write up, I am interested in one deck oven, 25 kg dough mixer eat but then can an amount of N2.5 m be enough to start a bakery?
    Secondly is your company available for technical advice?

    Reply

  32. That was a very good update on bakery business…God bless you for that great job.
    Please how can I get trained and how can I get able hands to work for me?
    Many thanks

    Reply

  36. I did a cost analysis. I realize 700, is far from starting. Please give a breakdown of this 700k to 2M to start a bakery.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

9 + 6 =

Disclaimer!!

While we strive hard to keep the information on this website correct and up-to-date, details featured here might differ from what obtains in the market.

Browse Our Site

error: Content is protected !!