CBN invests N120bn to resuscitate textile industry

The Central Bank of Nigeria (CBN) has invested over N120 billion across the textile value chain between 2018 and 2020 according to its Deputy Governor, Corporate Services, Adamu Lamatek.

At a cotton, textile, garment (CTG) stakeholder meeting, in Abuja, on Thursday, Lamatek said CBN’s intervention in the sector had recorded resulted in the investment of over N120bn across CTG value chain; over 320,000 farmers financed between 2018-2020; while expected output for seed cotton in 2020 is projected to be over 300,000 metric tons.

According to him, these should enhance the production capacity of the ginneries in producing over 102,000 metric tons of cotton lint and this is expected to meet and surpass the cotton lint requirement of the textile industry.

“Currently our domestic demand for cotton is met through local production, thereby halting the importation of cotton for the textile industry, increase in capacity utilization of ginneries as the ginneries now operate throughout the year, compared to six months in recent past; 19 ginneries resuscitated across the country, and more are expected to join this year

He added that CBN’s enhanced drive toward anti-smuggling yielding result with over 15 textile smugglers accounts frozen across the country.

“A lot of progress has been made, but at the same time more needs to be done to ensure that we build an inclusive economy that supports domestic production of goods and services while offering job opportunities to teeming Nigerians.

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Also speaking, Director of Development Finance Department of CBN, Mr Yusuf Yila, said after completing the first two phases of the CTG renewal, the bank was now working with the textile companies through the Bank of Industry for their retooling and take the ginneries to the textile.

“CBN is really a collaboration with all the agencies and the Customs. The biggest challenge is people smuggling textiles and garments. As you are aware a lot of them their accounts have been blocked.

“On the uniform men, we are working with them. We have taken them to all the textile companies to see that the quality meets their standard.

“The first phase one of the high yield seeds has been completed. This year we are looking at over 300,000 tones of seed cotton that will be ginned into lint that will be taken to the textile companies and then we will work with the uniformed services to off-take them” and promised that CBN will make early disbursement of money to the farmers.

NIGERIAN TRIBUNE