Jonathan okays incentives for cassava bread production
President
Goodluck Jonathan on Wednesday approved two major incentives aimed at
encouraging the production of cassava bread in the country.
Minister of Finance, Dr. Ngozi Okonjo-Iweala, said this while
addressing State House correspondents after the weekly Federal Executive
Council meeting.
She said the President had agreed to make the importation of cassava-enhancing enzymes into the country duty-free.
The minister said that the Federal Government had also resolved to place additional levies on the importation of wheat.
Okonjo-Iweala recalled that the President had during his budget
speech last year announced that wheat flour, which used to attract 35
per cent, would from July 1 attract not just a duty rate of 35 per cent
but a 65 per cent levy.
She said the money that would be realised from the levies would be
put in a special fund to assist in the production of cassava bread.
She said, “The quantity of the cassava-enhancing enzymes used in the
production of cassava bread is not sufficient here and so much are being
imported.
“The import duty rate on the enzymes will be reduced from 10 per cent to zero per cent.”
The minister also said, “There will be levies on import of wheat. The
levies will be put into Cassava Bread Development Fund to be used to
support the development of the value chain up to the production of the
bread.
“It will help produce the cassava bread in the needed quantity.
Relevant agencies and ministers would manage the fund. From the fund
also, some credit support and enhancement would be provided for small
millers.”
She said, “We need to encourage the millers and the master bakers and
therefore we will use this fund to support research, experimentation,
bringing in of new equipment so that there will be new modular
technology that is going to come in and we want to support the
decentralisation of milling and baking.”
Minister of Agriculture and Rural Development, Dr. Akinwunmi Adesina,
said with the cassava bread initiative, the nation would be saving the
N635bn being spent on the importation of wheat.
Adesina said the government would not fold its hands and allow Nigeria to remain a slave to wheat importers.
The minister faulted the claims that cassava had adverse effects on
people’s health, saying “Cassava bread is cheaper and healthier.”
He said other incentives being planned to boost the policy would bear
in mind that master bakers in the country would require new training
and equipment to enable them to effectively and efficiently implement
the cassava bread initiative.
