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Wednesday, September 28, 2022

Investment of N120 bln in local production of cotton yielding result~CBN

The Central Bank of Nigeria (CBN) has said that its investment of N120 billion to boost local production of Cotton and revive the nation’s Textile and Garment industry is gradually yielding fruits.

The regulatory bank’s Deputy Governor in charge of Corporate Services, Edward Adamu who said this at a meeting with stakeholders in the CTG sector in Abuja, noted that over 320,000 farmers had been financed between 2018 to date.

Adamu said the CBN is projecting that output for seed cotton would be over 300,000 metric tonnes in 2020 and is expected to enhance the production capacity of the ginneries sub-sector.

According to him, this will also result in producing over 102,000 metric tonnes of cotton lint, which should meet and surpass the cotton lint requirement of the textile industry in the country.

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According to him, the domestic demand for cotton is currently met through local production, thereby halting the importation of cotton for the textile industry as well as increasing capacity utilisation of ginneries, which now operate throughout the year compared to months in the recent past.

The CBN deputy governor noted that a total of 19 ginneries had been resuscitated nationwide and more are expected to become operational this year.

He also said that the regulatory bank’s enhanced drive toward anti-smuggling was already yielding positive result with over 15 textile smugglers’ accounts frozen.

“A lot of progress has been made, but at the same time more needs to be done to ensure that we build an inclusive economy that supports domestic production of goods and services, while offering job opportunities to teeming Nigerians.

“This assignment has been bestowed upon us all by the President of the Federal Republic of Nigeria, Muhammadu Buhari, who remains extremely supportive of the agricultural sector revolution due to its role in ensuring food security, creating jobs and stabilising the Nigerian economy,” he added.

Adamu said the revival of the textile sector remained vital to the country’s growth objectives and that the CBN’s interventions are designed to resuscitate and return the industries back to its glorious days of job creation, economic diversification and achieving self-sufficiency in cotton production as well as minimise and eradicate smuggling and dumping of textile goods and facilitation foreign reserves’ accretion.

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