BY EDMOND ODOK, ABUJA – The Central Bank of Nigeria (CBN) has expanded its FOREX restriction list to include textiles and garments imports into the country.
CBN Governor, Mr Godwin Emefiele, announced the new addition in Abuja on Tuesday during a meeting with textile industry stakeholders.
Emefiele said the policy, which takes immediate effect, would revitalize the nation’s textile industry and engender the desired growth across board.
He stated that by the FOREX restriction, the apex bank has directed all FOREX dealers in Nigeria “to desist from granting any importer of textile materials access to forex in the Nigerian Foreign Exchange market.”
The Governor further explained that the CBN “shall adopt a range of other strategies that will make it difficult for recalcitrant smugglers to operate banking business in Nigeria”, adding that; “The details of those strategies will be unfolded in due course.”
The governor also assured that the disturbing issue of smuggling would be seriously addressed to discourage importation of textiles while forcing sellers of textile and garments to buy from Nigerian producers.
Acknowledging the obvious challenges in the fight against smuggling, Mr Emefiele said; “we know what we will do to make it difficult for those smugglers to bring in those things into Nigeria and we will unfold those to you.
“So, when we make it difficult for them to smuggle those things into the country, it opens the market for you so that those who would have gone to buy those things will be forced to come to you.
“That is one economic solution that I see and since the government itself has already signed an executive order, that will compel everyone to flow in your direction.”
He said as part of its intervention in the sector, CBN would 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 2020.CBN FOREX Ban Now Covers Textiles, Garments Import
According to him, as part of its Anchor Borrowers Programme (ABP), the CBN would also support local growers of cotton to enable them meet the needs of local textile industry in the country.
The CBN Governor also hinted of the apex bank’s resolve to support efforts at sourcing high yield cotton seedlings towards ensuring the yields from Nigeria’s cotton farmers meet the global benchmarks.
On the provision of financial support to textile manufacturers at single digit rate to refit, retool and upgrade their factories, Emefiele told the stakeholders that that the challenge was for them to produce high quality textile materials for both domestic and export market.
He further assured that the CBN would support the creation of textile production centres in certain designated areas where access to electricity would be largely guaranteed.
“In 2016, the CBN 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.
“We would intensify efforts with these governments and others that may show keen interest to see to the quick actualisation of such programmes.
“We believe that these measures will discourage smuggling, resuscitate this critical industry, and support your efforts at creating jobs for Nigerians.”
