The Central Bank of Nigeria (CBN) recently announced N50 billion special mechanism funds to revive the country’s ailing textile industry. The funds, to be administered by the Bank of Industry (BoI) at a 4.5 per cent interest rate, will use any of the CBN-approved non-interest financing instruments for refinancing of projects, long-term financing for acquisition of plant, and machinery and working capital for beneficiaries.

A statement signed by CBN director of financial policy and regulation department Kelvin Amugo containing the guidelines for the revival was released by the bank.

The seed fund, which is a one-off intervention, will terminate by December 31, 2025, with the maximum financial amount pegged at N2 billion for a single obligor for new facilities and N1 billion for refinancing, according to Nigerian media reports.

The plan to turn around the textile sector was finalised at the August 7 meeting between CBN governor Godwin Emefiele and textile mill owners.

Fibre2Fashion News Desk (DS)

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