Reps probe utilization of N200bn cassava bread fund

The House of Representatives before proceeding on the Christmas break, unveiled plans to investigate the utilization of N200 billion cassava bread fund initiated by the President Goodluck Jonathan’s administration.

The resolution was passed sequel to the adoption of a motion sponsored by Ayokunle Isiaka, who argued that the total sum of N3.9 trillion spent on wheat importation over the past four years, is unsustainable.

“The House notes the introduction of 15 percent levy in 2012 on every wheat imported into Nigeria with the promise to use the proceeds of the tariff to develop a Local Content Industry-Cassava Bread Value Chain.

“The House also notes that the 15% levy was introduced with the buy-in of all the three National Stakeholder Associations which necessitated a 20% increase in the price of bread in 2012 due to corresponding increase of N1,000 in the price of wheat flour by Flour Millers in direct reaction to the levy for the implementation of this Local Content policy Fund towards Cassava Flour Inclusion.

“The House further notes the inauguration of a Committee in 2013 after a similar one in the Caribbean country of Trinidad and Tobago to guide the fund management, operations and disbursement of the first tranche of N9.999 billion out of the then balance of N200 billion, based on approved proposals.

“The House is aware that the Cassava Bread Fund (CBF) is estimated to have accumulated over half a trillion naira as at date for building a robust and fresh roots supply chain for small, medium and large cassava processing plants, support to Large/Medium High Quality Cassava Flour (HQCF) Mills, support to SMEs producing High Quality Cassava Flour (HQCF), to Master Bakers on 20% (HQCF) Cassava Bread, production and social marketing of 20% cassava bread, pre-emptive measures against cassava brown streak disease to up-scale about 5,000 bakers, training and support for at least 6 bakers per Local Government Area (LGA) across the 774 LGAs in the country and to engage professional advertising companies or consultants on branding cassava bread under the social marketing component.

“The House was informed of the estimation that Cassava farmers lost investments in excess of N360 million due to break-down in the value chain necessitated by non-implementation of the programme within a year,” he said.

The lawmaker also expressed concern that N536.54 million worth of employment of youths, women etc. which hitherto were exported to Europe and USA would have been made available at 20% inclusion of Cassava Flour daily, thereby reducing the rate of unemployment in Nigeria.

According to him, “at 20% inclusion level, the GDP of Nigeria would have been enhanced by N195.84 billion annually with the transformation of the lives of the rural poor who will form the bedrock of formation of new crop of wealthy Nigerians.

“The House is also concerned about the loss of investment of over N10 billion in the past 5 years across the value chain and 10 million additional job opportunities across the entire CBF stakeholders, yet the annual wheat importation into Nigeria is $3.2 billion yearly (N979.2 billion at N306/USD), while Nigeria spends over $8.7 million (N2.6 billion) daily totaling about N3.886 trillion for the past 4 years on wheat importation which is not sustainable in the face of dwindling revenue.

To this end the House mandated the joint Committees on Agricultural Production & Services and Banking & Currency to carry out an investigative audit of the releases, cumulative contributions, owings and level of implementation of the Cassava Bread Fund Programme.

The Committee is also expected to examine the losses suffered by Cassava Bread Growers Association and the Value Chain therein, with a view to compensating/encouraging them and determine modalities for rejuvenating the Cassava Bread Growers Programme and report back within six weeks for further legislative action.

KEHINDE AKINTOLA, Abuja