FG sets up Cassava Bread Development Fund

President Goodluck Jonathan has defied opposition from several quarters criticizing what they refer to as his fixation on popularizing locally produced foods like cassava bread and Abakiliki rice.

The House of Representatives had earlier passed a resolution rejecting the policy which aims at making Nigerians take to cassava bread. Some lawmakers argued that the policy could have serious health implication on some citizens.

On Thursday, it rolled out additional taxes aimed at discouraging continued importation of wheat and flour into the country. It believes the policy would force bakers to turn to cassava in making breads for local consumption.

The Minister of Finance and Coordinating Minister for the Economy, Ngozi Okonjo-Iweala, said henceforth wheat and flour imports would attract 65 per cent levy, in addition to the 35 per cent duty on the commodity imposed in line with the approved 2012 budgetary provision, which becomes effective this month.

The minister, who was interacting with flour millers and master bakers in Abuja, also announced the removal of the 10 per cent tariffs on cassava enhancing enzymes effective from Sunday, 15th July this year.

According to the minister, the money to operate the Fund would be sourced from the newly imposed 65 levy on wheat imports and would be managed at first instance by the Ministers of Finance, Agriculture, Trade and Investment and Science Technology and the Director General of the Budget Office.

“The wheat flour, which used to attract a duty rate of 35 per cent with no levy, will effective 1st of July, and in order to encourage the substitution of cassava flour for wheat flour, attracts not just the duty rate of 35 per cent, but also a 65 per cent levy”, the minister said. “That has now kicked into effect. So, that is where we were. This is to encourage the flour milling industry to kick in and begin to aid the substitution of cassava flour for wheat flour.

“But in addition to that incentive to the cassava value chain and to the cassava processing industry, we want to announce a couple more additional incentives that will help the industry. The first is with regard to cassava enhancing enzymes which the Minister of Agriculture just referred to.

“At present, they attract a duty rate of 10 per cent. We will reduce that to zero per cent effective from now. So, as from 15th July, we are reducing the duty on cassava enhancing enzymes from 10 per cent to zero per cent to encourage the bakers and the millers in the industry.

“The second thing that we would do is that we are going to use part of the 65 per cent levy on wheat flour to create a Cassava Bread Development Fund and this Fund would be used to support the cassava value chain.”

Leave a reply

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

cool good eh love2 cute confused notgood numb disgusting fail