The Central Bank of Nigeria (CBN) disclosed that it had invested over N120 billion across the Cotton, Textile and Garment (CTG) value chain since the inception of its intervention programme in the industry.
CBN Deputy Governor, Corporate Services, Mr. Edward Adamu disclosed this at a meeting with stakeholders in the CTG sector in Abuja.
He said over 320,000 farmers had been financed between 2018 to date, adding that expected output for seed cotton is projected to be over 300,000 metric tons in 2020.
Adamu pointed out that this is expected to enhance the production capacity of the ginneries in producing over 102,000 metric tons of cotton lint which should meet and surpass the cotton lint requirement of textile industries in the country.
He said the domestic demand for cotton is currently met through local production, thereby halting the importation of cotton for the textile industry as well as an increase in capacity utilization of ginneries as the ginneries now operate throughout the year compared to months in the recent past.
The CBN deputy governor added that a total of 19 ginnernes had been resuscitated across the country adding that more are expected to become operational this year.
He said the apex bank’s enhanced drive toward anti-smuggling was already yielding positive result with over 15 textile smugglers’ accounts frozen across the country.
Addressing the farmers, he said: “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.
“This assignment has been bestowed upon us all by the President of the Federal Republic of Nigeria, Muhammadu Buhari, who remains extremely supportive of the agricultural sector revolution due to its role in ensuring food security, creating jobs and stabilizing the Nigerian economy.”
Adamu said the revival of the textile sector remained vital to the country’s growth objectives adding that the CBN’s interventions is designed to resuscitate and return the industries back to its glorious days of job creation, economic diversification and achieving self-sufficiency in cotton production as well as minimize and eradicate smuggling and dumping of textile goods and facilitation foreign reserve accretion.
Also speaking at the occasion, CBN Director, Development Finance Department, Mr. Yila Yusuf, said smuggling of textiles remained the most significant challenge towards repositioning the sector.
Speaking with journalists, he said, “As you are aware a lot of them (smugglers), their accounts have been blocked. As restitution, we are telling them to go patronize the local textile factories”.
He said the CBN is also working with the uniform services to enhance patronage of locally made fabrics which are of high quality.
While addressing concerns raised by stakeholders on early funding to check arbitrage by intermediaries, he said going forward; the CBN will ensure that farmer get funded with the right interest regime.
The President of the National Cotton Association of Nigeria, Mr Anibe Achimugu had stressed the need for farmers to access funding from the Export Development Fund (EDF) to help them remain competitive.
He said: “As we speak we have excess cotton in warehouses because the current capacity of the textile companies is not able to utilize the cotton for now. But, of course, since the CBN is intervening in the textile companies, they should be able to improve their capacities in the future.
He said: “Quality planting seeds are not available on the quantity needed. We only have an institute of agricultural research, but that is not enough. But the government can open up the space for the private sector in seed production and processing.”
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Addressing the farmers, he said: "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. "This assignment has been bestowed upon us all by the President of the Federal Republic of Nigeria, Muhammadu Buhari, who remains extremely supportive of the agricultural sector revolution due to its role in ensuring food security, creating jobs and stabilizing the Nigerian economy." Adamu said the revival of the textile sector remained vital to the.
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