Updated: CBN Restricts Forex Sale To Importers Of Textiles
Oru Leonard
The Central Bank of Nigeria, CBN, on Tuesday announced the restrictions of sale of foreign exchange to importers of textiles and other clothing materials.
The CBN Governor, Godwin Emefiele said this on Tuesday March 5, 2019 during the Stakeholders Meeting of the cotton value chain in Abuja.
He disclosed that Nigeria currently spends above $4 billion annually on imported textiles and ready-made clothing.
He said that henceforth, banks and dealers in the foreign exchange market are prohibited from selling forex to those seeking to import textiles and clothing materials. The move which is expected to be effective immediately, is in a bid to support the revival of the textile sector.
He noted that with a projected population of over 180 million Nigerians, the needs of the domestic market are huge and varied, with immense prospects, not only for job creation, but also for growth of the domestic textile industries.
“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”, he stated.
Mr Emefiele, also announced that the CBN has decided to implement a few steps to revive the sector, which includes; “Support to Textile manufacturers with the provision of funds at single digits rate, to refit, retool and upgrade their factories in order to produce high quality textile materials for the local and export market; Initially support 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.”
Other steps that will be taken by the CBN include, to support local growers of cotton as part of the CBN Anchor Borrowers Program, 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.
As regards provision of stable electricity, the CBN shall support the creation textile production centers in certain designated areas in Nigeria where access to electricity shall be guaranteed”, he added.
The governor recalled that the CBN in 2916 began discussions with the Kano and Kaduna State Governments to establish textile industrial areas in a bid to guarantee stable electricity in those industrial areas, adding that the apex bank will intensify efforts with these governments and others that may show keen interest to see to the quick actualization of such programs.
“We believe that these measures will discourage smuggling, resuscitate this critical industry, and support your efforts at creating jobs for Nigerians”, Emefiele concluded.
Mr Godwin Emefiele who led the meeting which brought key players in the textile industry, banks, and other officials of the CBN, brings to an end the rumour floating in the media that the CBN Governor has been removed.
