Abstract:Nigeria is a large country of nearly one million square kilometers. The population of the country is rapidly increasing, reaching 167 million in 2012. Due to urbanization and changes in lifestyle, bread is increasingly being consumed in the country. Wheat performs poorly under Nigerian climate; hence the country spends huge foreign exchange for the importation of wheat. Nigeria spent N 635 billion Naira (US $1 = N 156) on the importation of wheat in 2010 alone. The country is therefore spending nearly N 1.8 billion daily for wheat importation. The Federal Government of Nigeria (FGN) planned to reduce wheat importation by implementing 40% cassava inclusion in bread policy in July 2012. This paper appraised the benefits and challenges of the 40% cassava inclusion in bread policy. The benefits of the policy include increased domestic agricultural productivity, food security, foreign exchange savings, employment generation, and wealth creation. On the other hand, implementation of the policy could precipitate several challenges including lack of enough domestic capacity to generate the volume of cassava flour needed to actualize the policy, increased smuggling of wheat, poor cassava flour supply chains, weak policy implementation, technology and processing challenges, reluctance of millers to use cassava flour, and cassava bread policy instability. Unless, these challenges are addressed the current attempt of 40% cassava inclusion policy could fail like previous attempts.