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CBN spends over N44bn on garment sector

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CBN Spends Over N44bn On Cotton, Textile, Garment Sector In 2 Years

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The Central Bank of Nigeria (CBN) said it has disbursed over N44 billion across the cotton, textile and garment (CTG) value chain between 2019 and 2020 and has been monitoring recovery over the period.

The central bank (CBN) also said its intervention in the sector has created over 620,000 direct and indirect jobs in two years while also ensuring that the textile industry record an increase in production – over 10 million meters of yarn materials.

CBN governor Godwin Emefiele, made the statement yesterday at a stakeholders’ engagement for the resuscitation of the cotton, textile and garment sector in Abuja.

The deliberations were focused on solutions and strategies for addressing identified challenges and promoting sustainable impact of the resuscitation programme in the CTG sector.

Emefiele who was represented by his deputy in charge of corporate services, Edward Adamu, said the textile industry in Nigeria is capable of an average output of between 150,000 and 300,000 metric tonnes with a ginning capacity of 497,000mt at 51 per cent capacity utilisation from 19 per cent.

The cotton, textile and garment sector is a critical sector in the country with huge potential for creating hundreds of thousands of jobs, supporting the production and use of locally manufactured textiles and saving us billions in foreign exchange.

The CBN had said it wants to close the seed cotton gap in Nigeria of 450,000 metric tonnes by 2022.

Adamu said the CBN has financed 19 ginneries, four textile companies and three garment manufacturers under the textile sector intervention facility within the same period.“This has led to an increase in the number of active ginneries from 13 in 2019 to 21 as at June 2021,” he said.

The CBN has “Financed over 200,000 cotton farmers between 2019 and 2020, cultivating 291,761 hectares of land with an output of 94,787 metric tonnes of cotton seed,” Adamu said.

The CBN is also collaborating with some private stakeholders towards improving the quality of seeds to guarantee high yields. We have also supported the textile companies in the last two – three years, leading to the revival of some previously moribund companies.

The CBN governor said plans are currently underway with involvement of ginneries to integrate backwards by cultivating an average of 53,100 hectares with an estimated output of 106,200 metric tons at two metric tons per hectare for the 2021 wet season. “We are also working with existing prime anchors for 10,000 hectares of land with an estimated output of 20,000 metric tons, he said.

CBN director, development finance, Philip Yila-Yusuf, said the bank is working closely with ginneries to backward integrate, and cultivate an average of 43,100 hectares with estimated output of 86,200mtn.

President of the national cotton association of Nigeria, Anibe Achimugu, said intervention of the CBN has contributed to the growth being recorded in the sector. “In spite of the Covid-19 challenges, we were able to identify 123,000 farmers while 90,700 hectares were cultivated.

“We must synergise, come together, we must create an ecosystem. We must help ourselves and not see ourselves as competitors. We need to work together. We all don’t want to lose this opportunity,” Achiemugu said, adding that President Muhammadu Buhari’s commitment is helping.

Founder and chief responsibility officer of Ruff ‘n’ Tumble, Adenike Oginlesi “We want government patronage. The Nigerian market alone is big enough for the operators in the garment industry. Our aim is to make Nigeria a garment manufacturing hub for big brands.

“We would like interest loans at 4 per cent to allow us to be as competitive as the Chinese. We will increase our number and take all the young people in Nigeria off the streets and put them in the factories all across Nigeria.”

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