The Central Bank of Nigeria (CBN) via its verified Facebook account has announced that it has spent over N120 billion across the Cotton, Textile and Garment (CTG) sector, with over 320,000 beneficiaries (farmers) financed between 2016-2020.
This is in line with the diversification agenda of the present Federal Government, as enshrined in the Economic and Recovery Growth Plan (2017-2020).
This latest development is the sequel to an earlier disclosure by CBN to invest over N100 billion in the CTG value chain. In addition, Nairametrics had earlier reported on the inherent economic potentials available in the CTG sector. It reported that if well harnessed, the sector has the potential to create nothing less than 2 million jobs and save the nation about $4 billion of our hard-earned forex on import bills annually.
What to expect
CBN justified the investment in the sector so far. According to the post, the following are the expected outcome of its sustained financing in the aforementioned sector:
- The expected output for seed cotton in 2020 is projected to be over 300,000 metric tons
- Enhance production capacity of Ginneries to over 102,000 metric tons of cotton lint, which is expected to meet and surpass the cotton lint requirement of our Textile industries
- 19 Ginneries resuscitated across the country and more expected to join before the end of 2020
Why this matter
A part of the CBN press release succinctly captured why the recent development is of delight to every well-meaning citizen of the country,
“CBN Interventions in Cotton, Textile and Garment sector is designed to resuscitate and return the Textile industries back to its glory days, creating jobs, diversifying Nigeria’s economy, and achieving self-sufficiency in cotton production.”