The Central Bank of Nigeria (CBN) says it will continue to support the Federal Government’s economic diversification efforts by facilitating the overhaul of the textile sector.
Mr Yusuf Yila, the Director, of Development Finance Department of CBN, gave the assurance in Abuja on Thursday, at the Cotton Garment and Textile (CTG) stakeholders’ meeting organised by the bank.
He conveyed the bank’s concern that most of the textile factories in the country had folded up in spite of Nigeria’s huge potential in the sector.
Yila said that the apex bank was committed to revamping the sector by supporting farmers to cultivate quality cotton lint, which was the major raw material for the industry.
He said that although a lot had been achieved over the last few years, more still needed to be done.
“Between 2018 and 2020, over 340,000 cotton farmers were engaged under the Anchor Borrowers’ Scheme, and they earned over N31.6 billion.
“We funded over 12 ginneries, creating over 450,000 jobs under the CTG intervention and we expect to do more,’’ he said.
Yila said that capacities of ginneries also increased within the period, adding that cotton lint produced outweighed the annual requirement of the textile companies, despite the burden of COVID-19.
“Cotton importation was at zero per cent in 2019, and cotton seeds farming is in full gear.
“Ginneries are now working at over 90 per cent capacity and textile companies have sufficient raw materials.’’
The director said that although smuggling of textile materials into the country had reduced, more still needed to be done to stamp it out completely.
“Nigeria is still the biggest market for cotton materials from Bangladesh, Turkey, China and India,” he said.
Stakeholders, under the aegis of National Cotton Association of Nigeria, were represented at the forum.