Inclusion of textile, garments in forex restriction will fast track industry’s growth- Manufacturers
The Nigerian Textile Manufacturers Association (NTMA) says inclusion of textile and garments in the Central Bank of Nigeria (CBN)’s foreign exchange restriction list will catalyse rapid growth and development.
The Director-General of NTMA, Hamma Kwajaffa, made the assertion in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos State.
Kwajaffa, while lauding the apex bank, said that the restriction would reinforce the various interventions of the Federal Government that had erstwhile been futile in the sector.
“It is an excellent move that will ensure the survival of the remaining textile industry, and it will even encourage more investments in the sector,” he said.
Kwajaffa said that reviving the textile sector to its past glory was vital to the nation’s economic growth and to the government’s job creation objectives.
NAN recalls that the CBN on March 5 added all forms of textile materials to its FOREX restriction list to rejuvenate the industry and ensure that the needed growth was actualised.
READ ALSO: Adamawa journalists observe peace walk for violence-free elections
It also said that it would adopt a range of other strategies that would make it difficult for recalcitrant smugglers to operate banking business in Nigeria.
The apex bank said it would support local cotton farmers through its Anchor Borrowers Programme to enable them meet the needs of the textile industry.
Kwajaffa disclosed that CBN would next week hold a meeting with stakeholders in the textile industry and management of the Bank of Industry (BoI) over issues relating to textile industry intervention funds.
He said that the meeting was to resolve the challenges in accessing the funds and to extend the tenure for the N100 billion Federal Government intervention fund and CBN’s N50 billion intervention fund to textile industry.
Kwajaffa noted that continued intervention would boost the sector’s capacity utilisation, global competitiveness, create employment and improve its contribution to the nation’s Gross Domestic Product (GDP).
NAN recalls that in 2010, the Federal Government introduced N100 billion Cotton, Textile and Garment Revival Scheme to stabilise and resuscitate some closed factories.
The CBN also in 2016 floated a N50 billion intervention fund as working capital, debt takeover and long-term loan to the Cotton, Textile and Garment value chain.
Both funds are domiciled and managed by the Bank of Industry (BOI). (NAN)
