Manufacturers happy with restriction of textile in foreign exchange

The Nigerian Textile Manufacturers Association (NTMA) says that the inclusion of textile and garments in the Central Bank of Nigeria’s (CBN) foreign exchange restriction list will catalyse rapid growth and development in the industry.
Hamma Kwajaffa, Director-General, NTMA, made the assertion in Lagos where he 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.
CBN on March 5 added all forms of textile materials to its FOREX restriction list to rejuvenate the textile industry and ensure that the needed growth was actualised.
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 the CBN would next week hold a meeting with stakeholders in the textile industry and management of Bank of Industry (BoI) over issues relating to textile industry intervention funds.
He said that the meeting was to resolve 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 in the sector would boost the sector’s capacity utilisation, global competitiveness, create employment and improve its contribution to the nation’s Gross Domestic Product (GDP).
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).