Home Naijamerit News 620,000 jobs created as CBN disburses N44 billion on CTG sector

620,000 jobs created as CBN disburses N44 billion on CTG sector

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From Uche Usim, Abuja

A 2019 effort by the Central Bank of Nigeria (CBN) to revive the Cotton, Textile and Garment (CTG) sector has led to the creation of 620,000 direct and indirect jobs in the last two years, the CBN declared on Tuesday.

CBN Governor Mr Godwin Emefiele, who made the disclosure at a CTG engagement in Abuja, stated that over 278,500 hectares of cotton farm were financed by the apex bank in 2019 and 2020, with over 90,000 MT of cotton seed harvested.

He further revealed that over N44 billion was disbursed between 2019 and 2020 across the CTG value chain to up the ante in the sector.

Emefiele, who was represented by CBN Deputy Governor, Corporate Services, Mr Edward Lamtek, added that nine ginneries have been resuscitated and have ginned cotton all year round for the first time in 10 years.

‘Aside from over 620,000 direct and indirect jobs created in two years, industry capacity of the ginneries increased from an average of 19% to 51%. The textile sector got 100% of their major raw material (cotton lint) at a CBN-subsidised rate of N440,000 as against the market price of N593,00O. The textile industry also had an increase in production of over 10 million meters of yarn materials,’ he stated.

‘Uniformed Services have started patronising made-in-Nigeria textiles for their uniforms. The garment industry received orders for the production of uniforms and cotton harvest bags.

‘The CBN’s engagement with uniformed Services has led to at least five agencies partnering with local textile manufacturers. The CBN is also collaborating with some private stakeholders towards improving the quality of seeds to guarantee high yields. We have also supported the textile companies in the last two to three years, leading to the revival of some previously moribund companies.’

According to the CBN Governor, plans are currently underway, with the involvement of ginneries, to integrate backwards by cultivating an average of 53,100 hectares with an estimated output of 106,200 Metric Tonnes at 2 Metric Tonnes per hectare for the 2021 wet season. ‘We have financed 19 ginneries, four textile companies and three garment manufacturers under the textile sector intervention facility.

‘We are also working with existing prime anchors for 10,000 hectares of land with an estimated output of 20,000 Metric Tonnes. Lastly, we will be working with associations to cultivate about 80,000 hectares of land with an average output of 120,000 Metric Tonnes at 1.5 Metric Tonnes per hectare,’ he assured.

He further noted that some of the major constraints faced by the CTG sub-sector including insufficient cotton seeds for production, high cost of operations, smuggling and counterfeiting, high influx of cheap textile and garment products into the country, inadequate infrastructure and limited access to funds are being tackled headlong.

‘This action has proven to be a turning point in the resuscitation of the collapsed textile industry.

‘It is important to note that the textile industry in Nigeria today is capable of an average output of between 150,00OMT and 300,000MT with a ginning capacity of 497,000MT at 51% capacity utilisation from 19%,’ he added.

Also speaking at the event, Director, Development Finance of the CBN, Yusuf Yila, noted that the apex bank seeks to close the seed cotton gap in Nigeria of 450,000 Metric Tonnes by 2022.

‘We want to increase the capacity utilisation of ginneries from less than 30% to 80% in the same period. We want to reduce the smuggling and dumping of textiles by at least 40% by the end of 2022.

‘This has led to an increase in the number of active ginneries from 13 in 2019 to 21 as of June 2021. Financed over 200,000 cotton farmers between 2019 and 2020 cultivating 291,761 hectares of land with an output of 94,787 Metric Tonnes of cottonseed.

‘This has led to an improvement in the household income of each farmer by an average of N240,000,’ he said.

Source: Nigerian Newspapers Online

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Author: Naijamerit

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