How To Start Bakery Business In Nigeria (2024)

This article is about how to start bakery business in Nigeria currently in this year 2024. Although one of Nigeria’s oldest industries, baking continues to be one of the most lucrative businesses in the country as the demand for bakery products, especially bread is very high; and it will continue to be so because of the love many people have for bread and its importance in the home as a “life saver”, a title also given to garri.

There are different types of bakeries in Nigeria that you can start, from making bread to pastries and even cakes. You should, however, be aware of how the industry operates and become experienced in baking. This business has a great potential in that you can start small and expand with the passage of time. If however, you have the means, you can start large and earn really high profits as returns in a short period of time. We will guide you on all you need to do, including information on startup costs, required equipment, etc so as to start your baking business in Nigeria as soon as possible. Do kindly continue reading to find out more.

BAKERY BUSINESS IN NIGERIA: AN OVERVIEW

Starting a bakery business in Nigeria is simple, but it takes more than just enthusiasm. In addition to having the necessary time and effort available, you also need a set of management and baking skills. Production and sales of various baked products, such as bread, cakes, pastries, and others to wholesalers, retailers, and occasionally final customers, comprise the bakery industry. In Nigeria today, bakeries are mostly recognized for producing bread, and bread sales generate more revenue for bakeries than other baked goods because bread is consumed more frequently compared to other baked products. In order to establish a bakery business in Nigeria, you will require a decent sum of money, unlike other day-to-day enterprises.

HOW MUCH IS REQUIRED TO START A BAKERY BUSINESS IN NIGERIA TODAY?

What comes to mind when considering establishing any business is the capital needed, which raises the issue of how much it would cost to launch a bakery in Nigeria. Whether you want to start small and expand or start on a larger scale, as well as the type of bakery business you want to open, all affect how much it will cost to open a bakery in Nigeria. The bread bakery industry in Nigeria requires significant initial capital, therefore you will need at least ₦2 million to get started. The cost of supplies and equipment, as well as staff salaries and a portion of the registration fee to operate the business, will all be covered by this sum.

GUIDE ON HOW TO START BAKERY BUSINESS IN NIGERIA 2024 

The following are the step by step processes on how to start bakery business in Nigeria this 2024:

CONDUCT A MARKET SURVEY

Conducting thorough market research is the first step in launching a bakery business in Nigeria. Given the variety of bakeries available, you must choose the ideal one to launch. You must also conduct research on the best approach to get started, as well as how much each piece of baking equipment and ingredient costs and where to get the best training. Also, you will need to understand the laws governing bakeries in Nigeria, the associations you must join, and the licenses needed to open the business. The easiest way to accomplish all of these is to get to know a local baker or bakery owner, establish a working connection, and do your homework.

TYPE OF BAKERY BUSINESS TO START

You must have learnt about various kinds of bakeries you can open in Nigeria throughout your market research phase. Choose the option that is best for you based on your personality and lifestyle. The business’s ease of operation, profitability, and starting costs should all be taken into consideration while making these decisions. Consider some of the following baking categories in Nigeria that you may want to venture into below:

• Traditional Bakery: Mostly bread loaves are baked in this type of bakery. In Nigeria today, it is the most common variety of bakery.
• Pastry Bakery: A bakery where the focus is in baking pastries, such as chinchin, puff puff, and doughnuts.
• Specialty Bakery: It involves the baking of a specific type of baked food, mostly cakes.
• Home Bakery: With a home bakery, you can start making any kind of baked foods straight from your kitchen and sell them either online or bring them to an event.

GET THE REQUIRED TRAINING

The next step is to get the required training once you have decided on the type of bakery business you want to launch. By going to a bakery and requesting the owner to hire you as a trainee rather than a worker, you can obtain training. You will gain more knowledge about the company as a whole and not only about baking. You can also schedule personal trainers to learn from them. Although it takes time, you can also enroll in a catering school to learn how to bake as a novice.

PREPARE YOUR BUSINESS PLAN AND CAPITAL

It is ideal to create a business plan that will serve as a roadmap toward your success, regardless of whether you want to launch a small or large bakery business or what kind of bakery business you want to launch. You must describe your goals in your business plan, together with your short- and long-term financial and growth aims. Plan out your whole strategy, taking into account team management and marketing. Your business will run more smoothly if you do this. You will need about ₦2 million to start a bakery business.

REGISTER YOUR BAKERY BUSINESS

In contrast to other businesses that can be started with zero registration, you must register your business in Nigeria before you can begin making and selling baked goods. Get certified by the AMBB and NAFDAC. To guarantee the quality and safety of the products for consumption, all businesses involved in the production of consumable goods are required to register with NAFDAC. To obtain all the permits and certifications necessary to operate your business without interruption, you also need to register your company with the CAC and join some local or state associations of bakery owners.

SECURE A SPACE FOR YOUR BAKERY BUSINESS

You require a good location for your bakery business. All baking and production processes take place here, where your oven will be mounted. If you have more money, you can build a bakery from scratch or rent a warehouse.

MAKE AVAILABLE THE NECESSARY EQUIPMENT FOR YOUR BAKERY BUSINESS

The next step is to buy all of the equipment and materials needed to start producing any form of baked food after you have set up shop in a suitable location. The cost of purchasing equipment is high, so you should investigate the best models before making a purchase. Among the equipment and supplies required are:

• Oven
• Mixers
• Dough proofer
• Bakeware
• Refrigerator
• Wood Top Work Table
• Proof boxes
• Racks and baking sheets
• Sinks
• Flour Sifters
• Trays
• Flours
• Baking Ingredients.

EMPLOY WORKERS

Find and employ capable hands that will help you run your business. Go for experienced people in the business and pay them competitive salaries as motivation.

START PRODUCTION

Next will be to start production. Keep in mind that your production area must be hygienic and clean, and your product packaging must be hygienic. Additionally, monitor daily production to maintain proper management and rapidly identify any changes that may be required.

MARKET YOUR BAKERY PRODUCTS

Marketing is the last and final phase in opening a bakery in Nigeria after production. There are various ways to market your bakery business in Nigeria, from going out and speaking with wholesalers and retailers one at a time to running sponsored advertisements online and offline. As a beginner, word-of-mouth advertising works well because you will be personally interacting with potential clients and persuading them to purchase from you. Additionally, you can ask your close friends, relatives, neighbours, and most crucially, recurring customers, to promote your business to a wider audience.