CBN Commends Stakeholders In Cotton, Textile And Garment Sector

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CBN

Olusola  Bello

Governor Emefiele has commended stakeholders in Cotton, Textile and Garment ( CTG )sector for their relentless commitment to the collective efforts at resuscitating the sub-sector in Nigeria.

 

The CBN governor gave the commendation while holding Cotton, Textile and Garment sector stakeholder’s engagement geared towards resuscitating the sector.

Textile industry in Nigeria today is capable of an average output of between 150,000MT and 300,000MT with a ginning capacity of 650,000MT at 80% capacity utilization says Governor Emefiele

CBN is on a journey to resuscitate the CTG sector with a plan to increase cotton production, capacity of ginneries and textile companies in the country, attain self-sufficiency in cotton production and create jobs, while enhancing the skills of Nigerians across the value chain of cotton production.

CBN will be working with associations that have repaid at least 70% of their existing loans to cultivate about 80,000 hectares of land with an average output of 120,000 Metric tonnes at 1.5 Metric tonnes per hectare.

Governor of the Central Bank of Nigeria (CBN) Mr Godwin Emefiele, has disclosed that Nigeria loses over N790 billion ($2.2 billion) to the smuggling of textile goods annually.

Emefiele stated  during the official flag off of the distribution of seeds and other inputs to cotton farmers in Katsina State for the 2019 planting season, under the auspices of the National Cotton Association of Nigeria that Nigeria loses over N790 billion ($2.2 billion) to the smuggling of textile goods annually.

 During the event in Katsina State, Mr Emefiele stated that no fewer than 130 textile companies have died in the country in recent times due to some constraints.

“Texile industries used to be largest employers of labour in Nigeria after Public services due to  certains constrainst , such as smuggling, dumping, lack of  access to finance  and issues that border on power, over 130  textile companies have perished.”

Furthermore, the apex bank Governor stressed that the ginners, spinners, and about one million farmers who were planting cotton as their source of livelihood also lost their jobs.

The CBN went tough on smugglers of textile materials and their accomplices in Katsina, threatening to blacklist individuals, banks, and corporate bodies found to be encouraging the practice in any way.

Emefiele also announced that the apex bank is gathering data and investigating the accounts of individuals and corporate bodies’ currently involved or encouraging smuggling and dumping of textile materials into the country.

He further stated that the investigation would be extended to the 42 other items restricted from FOREX in Nigeria. Names of individuals and companies found wanting would be publicised, and blacklisted, he said.

He described the launch as representing a milestone event being part of the measures the bank have embarked upon along with other stakeholders (including the Federal Ministry of Agriculture and Rural Development) towards the revival of Nigeria’s Cotton, Textiles and Garments industry.

“I believe that the CBN ought to play a more important role in supporting Nigeria’s economic development, given the constraints faced by rural farmers SMEs and Manufacturing companies. More importantly, we believe that CBN’s intervention which is aimed at import substitution  will help in conserving  scarce foreign exchange  for Nigeria.”

He further maintained that President Muhammadu Buhari placed considerable emphasis on addressing impediments to the growth of Nigeria’s agricultural and manufacturing sectors, as both sectors represent over 52% of the country’s GDP.

“We must revitalize  the texile industry to be largest employer of Labour, we feel that  we will set the stage  rolling, we must come to Katsina State  which is the largest producer of cotton to begins a  process.”

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