President Demystifies the Magic of Cassava Bread in 2012 Budget Speech

The President demystified the magic that has become cassava bread during his 2012 budget speech to the National Assembly. Critics of the President had lambasted the breaking, sharing and consumption of Cassava bread at a meeting of the Federal Executive a few weeks ago. Criticisms centered around the low level of disclosure concerning how the executive planned to make cassava bread a reality.

Today, whilst disclosing his administrations well envisaged plans for the agricultural sector, the president stated, “The Agricultural sector is being totally transformed to enable us move from traditional farming to modern agriculture as a business both for our small and large-scale farmers. Our objective is to ensure food security whilst also promoting exports in agriculture value chains where we have a comparative advantage. We intend to process and add value to different crops such as rice, cassava, sorghum, oil palm, cocoa, cotton etc.”

On Cassava bread, the President stated, “Government is also introducing policies to encourage the substitution of high quality cassava flour for wheat flour in bread-baking. Bakeries will have 18 months in which to make the transition, and will enjoy a corporate tax incentive of 12% rebate if they attain 40% blending. With effect from March 31st 2012, importation of cassava flour will be prohibited so as to further support this programme.”

Hopefully, the above explanations from the President will serve to quell the fiery questions from the critics.

However, the President did not stop there, continuing in his speech he announced 0% import duty “on machinery and certain specified equipment for the sector [agricultural]”.

He added, “All equipment for processing of high quality cassava flour and composite flour blending will enjoy a duty free regime as incentive to bakers for composite flour utilization. Consultations with the sector to ensure a smooth transition are on-going.”