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CBN approves N19bn for clothing industry

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The Central Bank of Nigeria (CBN) approved N19.18 billion to boost economic activities in the country’s textile and clothing industry.

Latest Nigeria newspaper report that Godwin Emefiele, the CBN governor, revealed this in the signing of a Memorandum of Understanding (MoU) with some critical stakeholders from the Cotton, Textile and Clothing (CTG) subsector in Abuja on Tuesday.

The memorandum of understanding was signed between CBN and Nigeria Cotton Association of Nigeria, Ginners Association of Nigeria, as well as Nigerian Textile and Garment Manufacturers Association.

Others who signed the memorandum of understanding with CBN include the armed forces, the Nigerian police, paramilitary institutions, the NYSC, and some uniform organizations.

Emefiele explained that the approval was to restructure the processing plants of nine ginning machines throughout the country and provide them with better access to financing at a single-digit interest rate.

According to him, this step would help maintain its operations and improve its production capacity. We are improving the links between cotton producers and grinders, ensuring that gingers can extract the high-quality cotton produced by these producers.

Latest Nigeria newspaper report that The same support will be extended to textile and clothing companies. We have invested heavily in our local textile and clothing factories to adapt and produce varied uniforms for our uniformed services that meet international standards.

“We have also set up a Textile Reactivation Implementation Committee (TRIC) that includes the CBN, the Federal Ministries of Agriculture and Rural Development, Water resources.

“Also, the Ministry of Industry, Commerce and Investment, and the governments of the states of Kano, Kaduna, Katsina, Gombe, and Zamfara.

“This Committee is promoting the initiative to achieve self-sufficiency in the production of cotton and textile materials in three years,” he explained.

Emefiele said he had held consultative meetings with state governments on ways to reduce the operating cost of operating textile factories within their respective states.

Latest Nigeria newspaper report that The CBN governor also revealed that state governments had expressed interest in providing captive power plants in industrial areas where textile manufacturers operate.

This said it was to improve their productivity and reduce the operating cost of operating their factories.

According to him, through these initiatives, all businesses along the cotton-textile value chain can come alive again, thus helping to improve the economy of the states.

Latest Nigeria newspaper report that the ceremony was attended by the governors of Kaduna, Cross River, the Gombe states, as well as the deputy governor of the state of Katsina.