By Franklin Alli

The Bank of Industry Limited has announced a N2.2 billion Cassava Bread Fund Initiative for 174 Members of the Association of Master Bakers of Nigeria.

The money is being disbursed to the beneficiaries in forms of loan and grant by the bank in collaboration with the Federal Ministry of Agriculture and Rural Development.

In a statement, the bank’s Managing Director/ Chief Executive Officer, Mr. Rasheed Olaoluwa, stated that the bakers are to use the money for the acquisition of baking equipment to enable the bakers achieve principally the inclusion of 20 percent cassava flour into wheat flour for baking of cassava bread as well as other confectionary as part of the Transformation Agenda of the Federal Government for the sector.

To this end, he said the sum of N2.2 billion was earmarked for this category of beneficiaries in form grants and loans.

“The members were grouped in two batches. The sum of N989 million has been disbursed to the first batch of 100 beneficiaries which represents 92 percent of the approved sum of N1.074 billion.

“In addition, of the remaining 74 beneficiaries, only 60 have met basic conditions precedent to facilitate the disbursement of 50 percent grant amounting to N537.93 million.

The requests for this batch are being processed as the suppliers of equipment only provided Performance Bonds as equipment delivery guarantees and the funds will be released on February 9, 2015,”he said.

According to him, the Fund is a revolving one and the sustainability of the scheme is considered paramount.  “Consequently, the Bank’s Regional Officers have been engaged in visiting and verifying the effective and efficient utilization of the funds in terms of equipment delivery, installation and efficient operation across the nation,” he stated.