Business
The Central Bank of Nigeria, in its efforts to boost the nation’s economy and encourage the industry to produce quality textile materials, is providing funds at single digit
By Anayo Ezugwu
THE Central Bank of Nigeria, CBN, is ready to financially support textile manufacturers in the country. Godwin Emefiele, the governor, CBN, said the apex bank would provide funds for the sector at single digits interest loans.
Speaking at a meeting with stakeholders in the cotton industry on Tuesday, Emefiele said manufacturers would use the funds to upgrade their factories in order to produce high quality textile materials for the local and export market. He also announced the suspension foreign exchange to all textile materials.
“Effective immediately, the CBN hereby place the access to FX for all forms of textile materials on the FX restriction list. Accordingly, all FX dealers in Nigeria are to desist from granting any importer of textile material access to FX in the Nigerian foreign exchange market.
“In addition, we shall adopt a range of other strategies that will make it difficult for recalcitrant smugglers to operate banking business in Nigeria. The details of those strategies will be unfolded in due course. We shall, initially support importation of cotton lint for use in textile factories, with a caveat that such importers shall begin sourcing all their cotton needs locally beginning from year 2020.
“As part of its Anchor Borrowers Program, the CBN will support local growers of cotton to enable them meet the needs of the textile industries in Nigeria. The CBN shall also support efforts to source high yield cotton seedlings so as to ensure the yields from our cotton farmers meet global benchmarks.
“As regards provision of stable electricity, the CBN shall support the creation textile production centres in certain designated areas in Nigeria where access to electricity shall be guaranteed. In 2016, the CBN began discussions with the Kano and Kaduna State Governments to establish textile industrial areas in a bid to guarantee stable electricity in those industrial areas. We would intensify efforts with these governments and others that may show keen interest to see to the quick actualization of such programs,” he said.
– Mar. 5, 2019 @ 13:49 GMT |
Tags: @cenbank CBN to support textile sector with single digits interest loans
