The planned intervention of the Central Bank of Nigeria in the moribund cotton, textile and garment industry comes as a huge relief to operators and represents the right step in the right direction towards actualising the Economic Recovery and Growth Plan of the current administration although policy consistency remains crucial, writes James Emejo
Years of maladministration and policy inconsistency on the part of government especially the inability to provide infrastructure and conducive environment to retain as well as attract more investments into the sector had further strangulated the textile manufacturing economy. The CBN Governor, Mr. Godwin Emefiele, had at a meeting with stakeholders in the CTG sector in Abuja, reeled out far-reaching intervention programmes, aimed at restoring the sector to its former glory.
“Effective immediately, the CBN hereby places the access to FX for all forms of textile materials on the FX restriction list,” Emefiele had announced. He said the CBN would craft adequate measures to deal with the menace of smuggling, which had often threatened efforts towards self-sufficiency.He said, “We will deal with smuggling this time. We know what we will do to make it difficult for them to import textile. We will try economic solution to smuggling.”
Emefiele also said that the CBN would support efforts to source high-yield cotton seedlings “to ensure the yields from our cotton farmers meet global benchmarks.” He explained: “One quick example that highlights the potential of this local market includes the need to support provision of uniforms and clothing apparels for school students, military and paramilitary officers as well as workers in the industrial sector.
He noted that following a successful general election, “our foreign investor- friends have began to show interest in Nigeria again, given their confidence of a stable business environment.” “In order to achieve this goal, the CBN together with other critical stakeholders recently identified key commodities and products such as textiles and palm oil that have the ability to support the creation of hundreds of thousands of jobs in our economy,” he noted.
According to him, many of the textile industry employers have had to lay off employees while most of the factories mentioned have all stopped operations, leaving only 25 textile factories in operation presently- and operating below 20 per cent of their production capacities with total workforce of less than 20,000 people.
The CBN governor added that, “By today, if we had nurtured and encouraged the textile industry, that sector will be employing millions.”
I don't know if this CBN governor has sense at all. Instead of them addressing what made the texile industry fail in Nigeria they are placing embargo on its importation. Is their power in Nigeria? Is there infrastructure or cheap financing that supports industrialisation?