Interviews
CBN makes efforts to revive Nigerian textile-garment units
16 Jul '19
2 min read
Pic: Shutter Stock
As part of its commitment to ensure that at least 20 textile and garment factories start full operations before this year end, the Central Bank of Nigeria (CBN) is soliciting partnerships to fructify this goal. The apex bank has engaged in interactive sessions across the country that drew representatives from various textile trade unions.
The unions include the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), private sector unions affiliated to the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and the United Labour Congress (ULC).
Citing the $4 billion spent annually on import of textile materials, CBN governor Godwin Emefiele expressed concern that the country loses $2 billion annually to textile smuggling and export, according to Nigerian media reports.
He said the Textile Revival and Implementation Committee (TRIC), comprising representatives from CBN, five states involved in the production of cotton, federal ministries of power, water resources, finance and Nigeria Customs Service, have the responsibility of resuscitating the country’s cotton belt, identifying textile clusters, improving cotton production nationwide and boosting power supply to textile firms across the clusters.
The forums closely followed three critical steps previous taken by the apex bank – adding textile to the 41 foreign exchange restriction list; the unequivocal threat to blacklist anyone or organisation involved in smuggling textile and recently the CBN set up a committee for the revival of the country’s cotton, textile and garment industry, with the mandate to revive a minimum of 50 textile firms by 2023. However, in the short-term, the apex bank plans to revive 20 textile firms within the 2019 fiscal period.
CBN director of corporate communications Isaac Okoroafor said of the 180 textile mills in the country, only 15 are functional and even those are doing so at low capacity. He said the industry currently supports 20,000 jobs from 550,000 hitherto employed in the sector.
He said CBN has decided to take the bull by the horn to revive the textile sector with the identification of over 100,000 cotton farmers who would be supported with the best seedlings and funded to support the textile value chain. (DS)
The unions include the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), private sector unions affiliated to the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC) and the United Labour Congress (ULC).
Citing the $4 billion spent annually on import of textile materials, CBN governor Godwin Emefiele expressed concern that the country loses $2 billion annually to textile smuggling and export, according to Nigerian media reports.
He said the Textile Revival and Implementation Committee (TRIC), comprising representatives from CBN, five states involved in the production of cotton, federal ministries of power, water resources, finance and Nigeria Customs Service, have the responsibility of resuscitating the country’s cotton belt, identifying textile clusters, improving cotton production nationwide and boosting power supply to textile firms across the clusters.
The forums closely followed three critical steps previous taken by the apex bank – adding textile to the 41 foreign exchange restriction list; the unequivocal threat to blacklist anyone or organisation involved in smuggling textile and recently the CBN set up a committee for the revival of the country’s cotton, textile and garment industry, with the mandate to revive a minimum of 50 textile firms by 2023. However, in the short-term, the apex bank plans to revive 20 textile firms within the 2019 fiscal period.
CBN director of corporate communications Isaac Okoroafor said of the 180 textile mills in the country, only 15 are functional and even those are doing so at low capacity. He said the industry currently supports 20,000 jobs from 550,000 hitherto employed in the sector.
He said CBN has decided to take the bull by the horn to revive the textile sector with the identification of over 100,000 cotton farmers who would be supported with the best seedlings and funded to support the textile value chain. (DS)
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