FG approves low interest funding plan for cotton, textile manufacturers

The Federal Gov¬ernment has ap¬proved a new funding mecha¬nism that will ensure that cotton, textile and garment companies access long-term, low inter¬est loans to finance their operations.
This is part of the new National Cotton, Textile and Garment Policy aimed at revitalising and boosting the growth and develop¬ment of the cotton, textile and garment industry.
Olusegun Aganga, the minister of industry, trade and investment, disclosed this during the launch of the National Cotton, Tex¬tile and Garment Policy and the inauguration of a 17-member Implemen¬tation, Monitoring and Review Committee for the CTG policy, in Abuja.
Aganga said the policy, which was a product of prolonged and compre¬hensive consultation with all the stakeholders in the industry, was expected to address all bottlenecks in¬hibiting the growth and de¬velopment of the industry.
He added that it would improve the quality, quan¬tity, production capacity, marketing and compet¬itiveness of the players across the entire value chain; control the influx of fake and sub-standard textile and garments into Nigeria; and improve the competitiveness of CTG across the nation, among others.
He said, “Extensive stakeholders’ consultation gave birth to the National Cotton, Textile and Gar¬ment Policy, which was approved by the Federal Executive Council on De¬cember 17, 2014.
“In 2010, the Federal Government introduced a N100 billion Cotton, Textile and Garment Revival Fund, managed by the Bank of Industry (BoI) to reverse the ugly trend of progres¬sive collapse of the textile industry. The BoI in con¬junction with the United Nations Industrial Devel¬opment Organisation have appraised the performance of the fund, indicating that a substantial portion of it has been successfully disbursed.”
He added, “We have, however, obtained presi¬dential approval for some aspects in the policy such as the conversion of the loan given to the BoI by the Federal Government for on-lending to CTG compa¬nies, into Federal Govern¬ment’s equity in the bank.
“This will make it pos¬sible for BoI to elongate the period of this fund which was billed to end in 2017. It further puts the BoI in a position to review the
Interest rate downwards. Already, a number of the beneficiaries of the CTG Fund have had their loan tenor elongated while their interest rates have been reviewed downwards. This will go a long way in al¬leviating the burden on CTG companies, especially those in the northern part of the country.”
The minister explained that the Federal Govern¬ment
had given priority attention to the revitalisa¬tion of the cotton, textile and garment industry due to its huge job creation potentials.
He added that as part of the new policy, all military and paramilitary institu¬tions and government-owned institutions would purchase only made-in-Nigeria fabrics in order to boost local patronage and support the growth of the value chain across the en¬tire CTG industry.

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“This is the first time in the history of the country that we have a comprehen¬sive policy that cuts across the entire value chain from farm to fashion. Also, the policy addresses the major problems militating against the sectors like power, smuggling and counter¬feiting,” he said.
Speaking during the event, Frank Jacobs, the president, Manufactur¬ers Association of Nigeria (MAN), described the new CTG Policy as “the requisite compass” for revitalisation and growth of the cotton, textile and garment indus¬try in Nigeria, adding that MAN would do everything to support the implementa¬tion of the policy.
“For us, the CTG policy is another milestone towards Nigeria’s Industrial Revo¬lution because it shows a
clear and integrated ap¬proach towards complete revitalisation and growth of the industry across the entire value chain,” he stated.