CBN Axes 15 Textile Smugglers’ Accounts

  • Invests N120in in CTG’s value chain

  • Supports 320,000 farmers

BY COBHAM NSA – In a bold move aimed at sanitizing and repositioning the nation’s textile industry for productivity, the Central Bank of Nigeria (CBN) has embargoed the accounts of 15 identified textile smugglers nationwide.

Also, the apex Bank confirmed that its intervention in the Cotton, Textile and Garments (CTG) industry is in full swing with over N120 billion already invested across the industry value chain.

CBN Deputy Governor in charge of Corporate Services, Mr Edward L. Adamu, told a CTG stakeholders meeting in Abuja on Thursday that the affected accounts were frozen as part of enhanced anti-smuggling campaign currently yielding significant results in the country.

He stated that CBN’s interventions in the CTG sector is designed to resuscitate and return the textile industry to its glorious days; create jobs; diversify Nigeria’s economy and achieve sell-sufficiency in cotton production.

Furthermore, Adamu said efforts are on minimizing and eradicatinng smuggling and dumping of textile goods and facilitating foreign reserve accreton.

Giving more insight, he said since flagging off the CTG intervention, huge progress has been recorded that includes; funding of over 320,000 farmers between 2018-2020; and projection of over 300,000 metric tons as expected output for seed cotton in year 2020

The Deputy Governor however admitted that “more needs to be done to ensure that we build an inclusive economy that supports domestic production of goods and services, while offering job oppotunities to teeming Nigerians.*

Adamu said CBN remains focused on enhancing the capacity of the ginneries (mills for ginning cotton) to produce over 102,000 metric tons of cotton lint which in turn will meet and surpass the cotton lint requirement of Nigeria’s textile industries.

He said; “Currenty our domestic demand for cotton is met through local production, thereby halting importation of cotton for the textile industry, Increase in capacity utlisation of ginneries as the ginneries now operate throughout the year, compared to six (6) months in recent past.”

Disclosing that 19 ginnernes have been resuscitated across the country, with more expected to join this year, Adamu said President Muhammadu Buhari remains extremely supportive of the agricultural sector revolution due to its role in ensuring food security, creating jobs and stabilizing the Nigerian economy.

He therefore urged all stskeholders to be actively committed to ensuring the 2020 cotton season is successtul in contributing to the sustainable growth of the country’s economy

Also speaking at the event, CBN’s Director, Development Finance, Mr Philip Yusuf Yila, said the apex bank is “working with the textiles companies through the Bank of Industry (BOI) to see how we can retool them and take the ginneries to the textile”

“CBN is really collaborating with all the agencies and Nigeria Customs. But the biggest challenge is people smuggling textiles and garments. As you are aware, a lot of them have had their accounts blocked. As restitution, we are telling them to go patronize the local textile factories”, he said

On the need for uniform services to patronise local textiles, Yila said CBN is liaising and discussing with the appropriate authorities, adding; “We have taken them to all the textile companies to see that the quality meets their standard.”

On his part, President of National Cotton Association of Nigeria (NCAN), Anibe Achimugu said among challenges facing the industry include textile firms’ lack of capacity to utilize cotton being produced.

According to him; “As we speak, we have excess cottons in warehouses because the current capacity of the textile companies are not able to utilize the cotton for now.”

He also complained about non-availability of quality planting seeds in the required quantity, adding; “We only have Institute of Agricultural Research but that is not enough. If government can open up the space for the private sector in seed production and processing, then this problem would have the needed solution.”

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