Adedapo Adesanya
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has announced credit facility worth N19.18 billion to nine cotton producing firms in order to help revamp their processing plants as part of the Federal Government’s Executive Order 003 to give preference to local industry.
Mr Godwin Emefiele, Governor of the CBN, announced this on Tuesday at the signing of two Memoranda of Understanding (MoU) held in Abuja, he where he also said the fresh loan would be disbursed on the basis of single-digit interest rate.
The bank, according to him, was taking this procedure to help sustain operations and improve their production capabilities while noting that other complementary firms like the textile and garment industries will also benefit from the bank’s support.
The first agreement was between the National Cotton Association of Nigeria and Ginning Companies and this will help guarantee solid off-take and processing of cotton lint and cotton seeds.
The other agreement was between the Nigerian Textile Manufacturers Association and the Armed Forces of Nigeria, Nigeria Police, paramilitary institutions and the National Youth Service Corps.
According to Mr Emefiele, this is aimed at facilitating a contract of five years or more with textile and garment companies to manufacture uniforms in Nigeria for use by various arms of Nigeria’s uniform services.
The CBN chief said that the MoUs was a giant step towards the implementation of Executive Order 003, in which President Muhammadu Buhari directed all the FG’s Ministries, Departments and Agencies (MDAs) to give preference to local content in their procurement of goods and services.
“We are improving the linkage between cotton farmers and ginneries, by ensuring that ginneries are able to off-take the high-quality cotton produced by these farmers.
“In this regard, an approval to a tune of N19.18 billion has been granted to finance nine ginneries with a view to retooling their processing plants, while providing them with improved access to finance at single digit interest rate,” he said.
He further said that the bank had constituted a Textile Revival Implementation Committee comprising the Bank, Federal Ministries of Agriculture and Rural Development; Water Resources; Industry, Trade and Investment; and the governments of Kano, Kaduna, Katsina, Gombe and Zamfara states.
In attendance were the governors of Kaduna State, Mr Nasir El-Rufai; Cross River State, Prof Ben Ayade; Gombe State, Mr Muhammad Yahaya; and Deputy Governor of Katsina State, Mr Mannir Yakubu.
The event was also attended by the Minister of Interior, Rauf Aregbesola; and all the service chiefs and heads of para-military agencies.
