CBN Freezes Bank Account Of 15 Textile Firms For Smuggling

.. Provides N120bn To Revamp Cotton, Textile And Garments Industry

The Central Bank of Nigeria has frozen the bank accounts of 15 textile firms that violated the Federal Government’s ban on importation of textiles.

The CBN Deputy Governor, Corporate Services Directorate Mr. Edward Adamu confirmed the development on Thursday at a
a meeting of stakeholders in cotton and garment value chain in Abuja.

Though, names of the affected smugglers were not disclosed, they were directed to shift patronage to local textile firms as restitution.

The Federal Government’s Executive Order 003, is aimed at supporting local content in public procurement.

It expressly states that all Ministries, Departments and Agencies shall grant preference to local manufacturers of goods and service providers in their procurement of goods and services.

Adamu said the CBN was determined to revamp the textile sector to its enviable position, adding that the sector is vital to Nigeria’s economy growth .

He said currently, the country’s domestic demand for cotton is met through local production, thereby halting importation of cotton for the textile industry,

He said the apex bank has been able to increase capacity utlisation of ginneries as the ginneries now operate throughout the year, compared to six months in recent past.

Adamu added that 19 ginnernes have been resuscitated across the country; and more are expected to join this year

He said, “Our enhanced drive toward anti-smuggling yielding result with over 15 textile smugglers accounts frozen across the country.

“A lot of progress has been made, but at the same time 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.

“This assignment has been bestowed upon us all by the President of the Federal Republic of Nigeria, Muhammadu Buhari GCFR who remains extremely supportive of the agricultural sector revolution due to its role in ensuring food security, creating jobs and stabilizing the Nigerian economy.”

The apex bank, according to him had committed over N120bn into revamping the Cotton, Textile and Garments industry value chain.

He said over 320,000 farmers had been financed by the bank between 2018 and 2020.

Edward put the expected output for seed cotton in 2020 at over 300,000 metric tons.

This, he noted, is expected to enhance the production capacity of the ginneries in producing over 102,000 metric tons of cotton lint.

With this, he expressed optimism that the expectation to meet and surpass the cotton lint requirement of the textile Industries would be surpassed.

He said, “As you are aware, in the 1970’s and early 1980’s, Nigeria was home to Africa’s largest textle industry, with over 180 textile mills in operations, which employed close to over 450,000 people.

“By today, if we had nurtured and encouraged the textile industry, that sector will be employing millions.

” The textile industry at that time, was the largest employer of labour in Nigeria after the public sector, contributing over 25 per cent of the workforce in the manutacturing sector. “

The CBN Director, Development Finance, Yusuf Yila said the bank had completed the first two phases of its interventions in the textile sector.

“We have completed phase one and phase two. We are where we are working with the textiles through the Bank of Industry to see how we can retool them and take the ginneries to the textile.

“CBN is really collaboration with all the agencies and the Customs. The biggest challenge is people smuggling textiles and garments.

“As you are aware a lot of them their accounts have been blocked. As a restitution, we are telling them to go patronize the local textile factories”.

On what is being done to get uniform establishments to patronise local textile firm, Yila said the collaboration between the CBN and security agencies is yielding results.

In his response, the President of National Cotton Association of Nigeria Anibe Achimugu lauded the bank for its intervention.

He said, “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.

” But of course since the CBN is intervening in the textile companies, they should be able to improve their capacities going forward.”