How CBN intervenes in textile, halt $4bn annual forex flight – CBN
By Eyo Nsima
The Central Bank of Nigeria, CBN, has intervened in the Cotton, Textile, and Garment (CTG) industry in order to eliminate the nation’s yearly import bill of $4 billion in the sector.
Speaking at the stakeholder meeting of the CTG sector resuscitation program in Abuja Tuesday, the CBN Deputy Governor, Corporate Services, Mr. Edward Adamu, said the bank has resolved to take the nation’s textile industry to its golden era.
According to him, the industry was already making a positive impact in returning the Nigerian economy to the path of growth.
He said: “we must focus and channel our resources towards reviving critical industries like the CTG in order to firm up economic recovery, improve employment and create wealth for our people.”
Representing the CBN Governor, Godwin Emefiele, Adamu disclosed that with the inclusion of textile materials to the list of items ineligible for foreign exchange from official windows in 2019, and the CBN intervention in the sector, the textile industry could now produce an average output of between 150, 000 and 300, 000 metric tonnes (MT), with a ginning capacity of 479 MT at 51 percent capacity utilization from 19 percent.
He also said that over 278, 500 hectares were financed in 2019 and 2020 with over 90,000 MT of cotton seed harvested, adding that nine ginneries have been brought back to life and ginned cotton all year round for the first time in 10 years.
He added that over 620,000 direct and indirect jobs were created in 2 years, while the operators got 100 percent of their major raw material (cotton lint) at a CBN-subsidized rate of N440,000 as against the market price of N593,000.
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