Cost of Starting a Bakery in Nigeria (2022)

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 – N1,500,000
  • Dough Mixer (1 bag) == N1,300,000 – N1,500,000
  • Dough Mixer (25kg) == N450,000 – N700,000
  • Tabletop Slicer == N250,000 – N700,000

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

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