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Textile revival fund will greatly expand economy – Minister
21 Oct '09
2 min read
Speaking at an International Conference on Nigeria's Textile Industry in Lagos, the Minister of State for Commerce and Industry, Mr. Humphrey Abah, said the Federal Government has completed plans to roll out a fresh scheme to rescue the nation's dying textile industry and bring about $57 billion expansion of the economy through the sector.
It may be recalled that the previous government of Olusegun Obasanjo had approved a N70 billion scheme to resuscitate the dying textile industry. But, nearly 4 years have lapsed since the announcement, but no money has been forth coming for a sector, which is on its crutches and needs to be helped to stand on its feet.
Mr. Humphrey Abah, said that the scheme, which would be launched in a fortnight, would induce $57 billion growth in the Nigerian economy as these funds would be pumped in to vital sub-sectors of the textile industry like, cotton farming, cotton ginning, yarn spinning, weaving of fabrics and finally the clothing manufacturing sector.
The Bank of Industry (BoI) would arrange for most of the funds for the scheme and only competitive and viable enterprises would be able to access it and would be available to the beneficiaries at a single digit rate of interest. He said electric power plants would also be covered under the scheme, since it is vital to the textile industry.
According to statistics, there were 120 textile factories in Nigeria in the 1980s, but has been reduced to just 45 now, most of which are operating at low capacities. Nigeria has been troubled by unrestricted illegal imports of cheap textiles and clothing and which have proved to be the nemesis of the textile and apparel industry.
It may be recalled that the previous government of Olusegun Obasanjo had approved a N70 billion scheme to resuscitate the dying textile industry. But, nearly 4 years have lapsed since the announcement, but no money has been forth coming for a sector, which is on its crutches and needs to be helped to stand on its feet.
Mr. Humphrey Abah, said that the scheme, which would be launched in a fortnight, would induce $57 billion growth in the Nigerian economy as these funds would be pumped in to vital sub-sectors of the textile industry like, cotton farming, cotton ginning, yarn spinning, weaving of fabrics and finally the clothing manufacturing sector.
The Bank of Industry (BoI) would arrange for most of the funds for the scheme and only competitive and viable enterprises would be able to access it and would be available to the beneficiaries at a single digit rate of interest. He said electric power plants would also be covered under the scheme, since it is vital to the textile industry.
According to statistics, there were 120 textile factories in Nigeria in the 1980s, but has been reduced to just 45 now, most of which are operating at low capacities. Nigeria has been troubled by unrestricted illegal imports of cheap textiles and clothing and which have proved to be the nemesis of the textile and apparel industry.
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