Bread Levy Pit Kogi State Government Against Nigerian Bread Makers

The levy placed on loaf of bread in Kogi State has been trailed by criticism, but the government has revealed that the levy was introduced to protect local bakers within the state, as competition rises from neighbouring states.

AllNews gathered that Kogi State bread market are being saturated by bread from small businesses operating outside the state. In order to limit the grip of these bread startups within Kogi market, the government slammed them with the levy.

According to the Kogi State Commissioner for Information and Communications, Kingsley Fanwo, in a statement titled  "The Facts About The Bakery Levies", the government can't allow its indigenous small businesses in the baking industry get swamped by those coming from the neighbouring state.

Bakers Outside Kogi Costing Indigenous Bakers

Fanwo said indigenous bakers were losing revenue to the other states by allowing external bakers to operate in Kogi market, and the best was for the state not to keep losing revenue is through the levy.

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He also said if the state government ignores, it could lead to job loss within the state, as some bakers will have to shutdown. Fanwo said Kogi State government will continue to take decisions that will aid the production of its bakers.

"The recent letter was one of our strategies at protecting our Indigenous bakers and also protect our economy from the activities of bakers outside the State who bring their bread to the State without paying any form of levy.

“No responsible government will sit by and watch her indigenous businesses lose the local market. Our indigenous bakers have complained bitterly about the activities of external bakers who packed their bread to the state in trucks and sell without paying anything to the state government.

“Poor sales by our bakers may lead to job losses, a situation we are determined to use legitimate means to avert." Fanwo said, adding that, "We assure the Master Bakers of our open-door policy and our readiness to keep listening to them in order to smoothen relationships and factors aiding their production as bread consumers have nothing to fear.”

Kogi Bakers Contradict State Government Over Bread Levy

While the state government said the levy was introduced to protect local bakers, Kogi State bakers stated that they are against the decision, this is according to the state chapter of the Association of Master bakers and Caterers of Nigeria (AMBCN).

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An executive member of AMBCN simply identified as Godfirst told The Cable that they are being tasked as well, and the pandemic makes it impossible for them to meet the financial demand from the government.

"The letter was sent to us that a consultant has been given the job to generate fund from bakery to state government; to generate revenue to (for the) state government." He said, adding that, “We are trying to meet with the consultant but we have not been able to meet with him. We want to meet with him to give us more explanation.”
 
“We are not happy about it, presently there is no market. We are facing different types of challenges, and if they are now asking us to pay another tax, we don’t know how we can cope,” Godfirst said.