The textile industry has another opportunity for revival as the Federal Government has announced the restriction of foreign exchange to importers of textiles and clothing materials.
Recent efforts to revive the industry considered to be potentially high-earning and one of the biggest employers of labour have practically failed.
Among such was the bailout given to some key players, but whose impacts have yet to be seen.
But in a renewed move to lift the sector, the Central Bank of Nigeria has initiated the forex restriction to stem importation and protect manufacturers.
The CBN Governor, Godwin Emefiele, said the move was also capable of saving the country more than $4 billion being spent annually on the importation of textiles and ready-made clothing materials.
Besides, Emefiele said, based on the volumes people spent on dresses, including for religious and social purposes, the industry was worth $10bn annually.
Speaking at the at the Textile Industry Stakeholders’ Meeting in Abuja on Tuesday, Emefiele said, “Effective immediately, the CBN hereby places the access to FX for all forms of textile materials on the FX restriction list. Accordingly, all FX dealers in Nigeria are to desist from granting any importer of textile material access to FX in the Nigerian Foreign exchange market.
“In addition, the CBN 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.
“The CBN shall, 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.”
The apex bank also intends to support efforts to source high-yield cotton seedlings so as to ensure the yields from farmers meet global benchmarks.
“As regards the provision of stable electricity, the CBN has also offered to support the creation of textile production centers in certain designated areas in Nigeria where access to electricity shall be guaranteed,” he said.
