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30 October 2019

CBN Confirms N19.18b Grant for Resuscitation of Cotton, Textile, Garment Sector

The Central Bank of Nigeria (CBN), says approval of N19.18 billion has been granted to help revive the nation’s cotton, textile and garment industry,
The CBN Governor, Godwin Emefiele disclosed this at the signing of Memorandum of Understanding between uniformed services, Garment Manufacturers Association, National Cotton Association and Ginners Association of Nigeria, in Abuja.
He said the move  was part of effort aimed to support the continued growth and development of Nigeria’s Agricultural Sector and the wider economy in general.
”Approval of 19.18 billion naira has been granted to finance nine (9) ginneries with a view to retooling their processing plants, while providing them with improved access to finance at single digit interest rate.
”The same support will be extended to the textile and garment firms. We have invested heavily in our local textile and garment factories to retool and produce assorted uniforms for our uniformed services that meet international standards.” He added.
According to Emefiele, the Nigerian cotton, textiles and garment sector has been facing challenges, one of which was smuggling of textiles, that he noted has cost the nation an import bill of over four billion dollars annually.
”The Nigerian cotton, textiles and garment sector has been facing very difficult challenges resulting not only in the closure of over 150 textiles firms in Nigeria but also loss of over 2 million jobs on 1990s
 ”Farmers and processors had to deal with low quality seeds, rising operating cost and weak sales due to high energy cost of running factories, smuggling of textile goods, and poor access to finance.
”Smuggling of textiles goods alone is estimated to have cost the nation an import bill of over $4.0billion annually on textiles and apparel.”
He therefore called on all Nigerians to support the preference to local content in their procurement of goods and services in order to create jobs and improve the economy
”We believe that through these initiatives, all the businesses along the cotton- textile value chain can come alive again thereby helping to improve the economy of our states.” Emefiele asserted.
The apex bank Governor however disclosed that a Textile Revival Implementation Committee (TRIC) which includes the CBN, Federal Ministries of Agriculture and Rural Development; Water Resources; Industry, Trade and Investment; and the Governments of Kano, Kaduna, Katsina, Gombe and Zamfara States has been constituted
to drive the initiative towards achieving self-sufficiency in cotton production and textile materials within 3 years.
Similarly, the Minister of Interior, Rauf Aregbesola urged Nigerians to support the initiative of patronizing made-in -Nigeria goods in order to boost the economy and help Nigeria take its place of pride in the comity of nations.
Beneficiaries of the MOU commended the CBN for its role in the project to resuscitate the garment industry while pledging to ensure the honour of Nigeria’s textile industry is restored.
The MOU which is geared towards the implementation of Executive Order 003, by President Muhammadu Buhari,  had signatories of stakeholders such as the NACOTAN, Nigerian Ginners Association, Nigerian Textile Manufacturers and Garments Association, Armed Forces of Nigeria Paramilitary Services and NYSC.
It is expected to see to the resuscitation of Nigeria’s Cotton, Textiles and Garments (CTG) sector through ensuring local sourcing of all uniformed services and hospital theatre wears.

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