·
Will the authorities in Government House, Asaba
take advantage of the pledge of the the Central Bank of Nigeria, (CBN) to bail out the ailing textile and garment industry by granting
credit facility as well as fight against smuggling of its products with the
collaboration with other government agencies. This pledge by the CBN is seen as
a major opportunity that could lead to the revival of the dead Asaba Textle
Mills, which if revived has the potential of a big boost to Governor Ifeanyi
Okowa’s SMART agenda in the area of generating employment opportunities for
Deltans.
Kayode Ogundele, reports in the New Mail that
the Governor of CBN, Godwin Emefiele gave assurance
of the apex bank’s commitment to reviving the industry during the meeting with
Cotton, Textile and Garment industry, CTG in Lagos.
According to him “The
Federal Government under the leadership of President Muhammadu Buhari has stated
its readiness to revive the ailing industry in order to create employment and
the CBN is also willing to bail out the operators, not only in credit facility
but also in other areas like tackling smuggling, creating enabling environment
etc.
“We are going to
provide cheap long term fund with single digit lending rate and continue our
complimentary efforts to addressing other key infrastructure,” Emefiele said.
He said that “Finance
is not the major obstacles to this sector but smuggling. There are many other
challenges but with our collective collaboration this meeting will immediately
resolve these issues”
He lamented the demise
of many industries in view of the fact that the sub sector that once employed
over one million hard working Nigerians is now almost dominated by imports from
Asia.
According to him,
“Between 1970 and 1980s, textile industries were spread across the country,
with many mills located in Kaduna, Lagos, Funtua, Gusau, Asaba, Aba, Kano and
host of other cities.
“There were well over
150 vibrant textile mills operating at close to full production capacities and
this sector accounted for well over a million direct and indirect jobs, second
only to the government as an employer of labour but now the story is
different.”
He frowned at the abandoned
and dilapidated structures of these textile companies spread across the
country, saying “CTG companies began to feel the pinch of the rather unstable
political environment, policy somersaults, massive and unfettered smuggling of
substandard Asian products into the country, high production costs due to
obsolete machineries, low level technologies and poor state of the country’s
infrastructure, especially power.”
He noted that the
sector with over 150 vibrant mills can only boost of less than 20 textile
companies, which he said was sad as the sectyor now employs less than 50,000
persons.
According to him,
Banks who were many years ago were falling over themselves to lend to the
sector were suddenly left with huge non performing loans after the bubble burst.
“Many banks were stuck
with specialised and obsolete equipment that coud not be easily disposed of.
This period heralded the beginning of the thorny relationship between banks and
textiles companies.”
He further disclosed
that one of the measures taken by the CBN to combat smuggling was restriction
of Foreign Exchange, FX to importers.
“Since the CBN has no
mandate to out rightly ban the importation of any product into the country, the
bank recently included textiles as one of the 41 items excluded from the FX
sales from the Nigerian FX market.
“Given the challenges,
the CBN is currently playing catalytic role in the power sector as the bank
launched the N213 billion Nigeria Electricity Market Stabilisation Facility,
NEMSF designed to help resolve liquidity challenges in the electricity sector
and settle debt owed to gas supplies in the power sector.”’
Responding on behalf
of the stakeholders, Leader of the Textiles Mills Association of Nigeria, Grace
Adereti commended the CBN Governor for the concern and interest shown in the
sector.
According to her “We
must thank you as you are the first Governor of CBN to call the various
stakeholders for a meeting of this nature and we believe the apex bank will
bail us out as it did to some other sectors since we are the largest employer
of labour after government in the past.
“It is a sad moment
that the industry has dropped from being the second largest employer of labour
to the least. Smuggling and harsh operating environment has been the bane of
this sector and we believe that the sector would come back to life with your
assistance.”
No comments:
Post a Comment