CBN bans importation of textile materials, set to revive industry
- The Central Bank of Nigeria (CBN) has placed ban on forex access to textile industry
- According to the CBN governor, the action was taken to boost the textile industry and make it employer of labour
- FX dealers in Nigeria are to desist from granting any importer of textile material access to FX
In an attempt to boost the textile industry of Nigeria, the Central Bank of Nigeria (CBN) has brought an initiative seeking a ban on the importation of textile products into the country.
The CBN governor, Godwin Emefiele, on Tuesday, March 5, at a meeting with stakeholders in the textile industry in Abuja made this known while also revealing that the apex bank has approved financial support for the industry, Daily Trust reports.
Emefiele also disclosed that CBN has earmarked funds for the textile factories at a single digital rate in order to upgrade the industry's production level for high qualitative textile materials.
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The CBN boss announced: “Effective immediately, the CBN hereby place the access to FX for all forms of textile materials on the FX restriction list.
“Accordingly, all FX dealers in Nigeria are to desist from granting any importer of textile material access to FX in the Nigerian Foreign exchange market.
“We shall adopt a range of other strategies that will make it difficult for recalcitrant smugglers to operate banking business in Nigeria. The details of those strategies will be unfolded in due course.”
Emefiele, whose tenure ends in June 2019, said the industry, if given appropriate financial backup, is capable of being the highest employer of labour in the country.
The CBN boss also said the industry is worth in excess $10billion, promising that high-valued programmes have been made to give full support for the moribund industry.
He added: "Initial support to the importation of cotton lint for use in textile factories, with a caveat that such importers shall begin sourcing all their cotton needs locally beginning from year 2020.
"Part of its Anchor Borrowers Program, the CBN will support local growers of cotton to enable them meet the needs of the textile industries in Nigeria.
"The CBN shall also support efforts to source high yield cotton seedlings so as to ensure the yields from our cotton farmers meet global benchmarks."
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Highlighting the power challenge the industry may face, Emefiele said CBN shall support the creation of textile production centres in certain designated areas in Nigeria where access to electricity shall be guaranteed.
Meanwhile, Legit.ng previously reported that the presidency had reportedly denied allegations that the governor of the Central Bank of Nigeria (CBN), Emefiele, had been sacked.
According to report, sources within the presidency on Monday evening, March 4, said Emefiele still remained the CBN governor till June 2019 when his tenure expired.
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