Nigeria's apex bank to rescue textile & garment industry

13 Aug '15

2 min read

Nigeria's apex band, the Central Bank of Nigeria (CBN) has started a programme aimed at revival of the country's cotton textile and garment (CTG) industry, Nigerian media reported.

CBN would provide loan at single digit interest to the CTG industry under the Real Sector Support Facility (RSSF).

During a meeting with representatives of the country's textile and apparel industry in Lagos, CBN governor Godwin Emefiele said the textile and clothing sector, which once had over 150 mills and employed more than one million people, is now completely dominated by imports from Asian countries.

Seeking collective efforts of all stakeholders to play their role to bring the country's CTG sector back to its past glory, Emefiele said the apex bank is ready to provide funding for the industry under RSSF.

The CBN decision comes few months after the US government extended the expiry of the African Growth and Opportunity Act (AGOA) till September 2025. The act provides enhanced market access for certain goods from qualifying countries in sub-Saharan Africa, including Nigeria.

Textile industry chairman Grace Adereti said the industry is currently in a state of coma, and less than 20 textile companies are operational compared to more than 150 mills that were once operational.

In the first quarter of 2015, Nigerian textile, apparel and footwear segment produced goods worth N460 billion ($2.31 billion), accounting for 21.7 per cent of the country's manufacturing output.

Nigeria also produces cotton, but its production decreased by more than 50 per cent to 200,000 bales of 480 lb in 2014 compared to 420,000 bales a decade ago, according to the US Department of Agriculture. (RKS)

Fibre2Fashion News Desk – India

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