The Central Bank of Nigeria (CBN) on Tuesday said that it would support the ongoing plans to reactivate the moribund cotton, textile and ginning producing companies with about N100 billion, saying that so far a loan of N19.18 billion has been approved for nine cotton producing firms to revive their processing plants.
The CBN Governor, Godwin Emefiele, who made these disclosures at the signing of two memoranda of understanding (MoU) between stakeholders in the ailining industry, said the N19.18 billion would be disbursed at a single-digit interest rate to beneficiaries.
According to him, while the first tranche of credit will l help to sustain the operations and improve the cotton firms production capacity, similar funding support would be extended to the textile and garment manufacturing companies to boost their production and by so doing, help in the current drives to create jobs for unemployed youths.
Emefiele described the MoU as a landmark step towards the implementation of President Muhammadu Buhari’s Executive Order 003 which directed all the government’s Ministries, Departments and Agencies (MDAs) to prioritise local content in their procurement of goods and services.
He explained: “We are improving the linkage between cotton farmers and ginneries, by ensuring that ginneries are able to off-take the high-quality cotton produced by these farmers.
“In this regard, an approval to a tune of N19.18bn has been granted to finance nine ginneries with a view to retooling their processing plants, while providing them with improved access to finance at single digit interest rate.”
“If we want to take the intervention from cotton farmers to the ginneries at least those two farmers alone, we’ve spent close to N50 billion”, the governor added
Emefiele hinted further that to revive the sector, the apex bank had constituted a Textile Revival Implementation Committee, comprising 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.
The first MoU was signed between the National Textile Association of Nigeria and Ginning Companies to guarantee steady off-take and processing of cotton lint and cotton seeds while the second pact was sealed between the Nigerian Textile Manufacturers Association and the Armed Forces of Nigeria, Nigeria Police, paramilitary institutions and the National Youth Service Corps.
The second agreement amis at facilitating a contract of five years or more with textile and garment companies to manufacture uniforms in Nigeria for use by various arms of Nigeria’s uniform services.
Commenting on the thematic thrusts of the MoU and their implications for national economic development, Gombe State Governor, Muhammad Inuwa Yahaya, said that the MoU demonstrated the apex bank’s commitment to revive the CTG sector and by so doing, help in reducing the rate of youth unemployment and boost economic growth.
The governor described the huge import bills on garments and textile products by the country as a drain on the country’s foreign exchange reserves.
Similarly, in his remarks, Cross River State Governor, Ben Ayade, said that the implementation of executive Order 003 which directed military and para-military agencies to patronise local textile products would go a long way in improving the quality of locally produced fabrics and demand for them.
Some dignitaries that witnessed the MoU signing ceremony include, Kaduna State Governor, Mallam Nasir El-Rufai; the Deputy Governor of Katsina State, Alhaji Mannir Yakubu, Minister of Interior, Rauf Aregbesola, service chiefs and heads of para-military agencies.
