CBN freezes 15 textile firms’ bank accounts over smuggling, economic sabotage

*Accounts of affected companies were frozen for flouting Federal Government’s ban on textile smuggling, and supporting local content in public procurement ─Edward Lamekek Adamu, CBN Deputy Governor, Corporate Services Directorate

Isola Moses | ConsumerConnect

For apparently frustrating its efforts at restoring Nigeria’s textile industry to earlier glory as a vital sector to the country’s economic growth, the Central Bank of Nigeria (CBN) has frozen the bank accounts of 15 textile firms that flouted the Federal Government’s ban on textile smuggling.

Mr. Edward Lamekek Adamu, Deputy Governor, Corporate Services Directorate at CBN, confirmed this in Abuja, FCT, at a meeting of stakeholders in cotton and garment value chain.

It was gathered the affected smugglers, whose names were not mentioned, were however, mandated to patronise local textile firms as restitution.

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

The Order states that all Ministries, Departments and Agencies (MDAs) shall grant preference to local manufacturers of goods and service providers in their procurement of goods and services.

The Deputy Governor of Corporate Services Directorate stated that CBN is determined to revive textile sector to its position.

Adamu said that the textile sector is vital to Nigeria’s economic growth.

The apex bank has committed over N120 billion to revamp the cotton, textile and garment industry value chain, according to him.

He said over 320,000 farmers had been financed by the bank between 2018 and 2020 just as he put the expected output for seed cotton in 2020 at over 300,000 metric tonnes.

“This is expected to enhance the production capacity of the ginneries in producing over 102,000 metric tons of cotton lint and this is expected to meet and surpass the cotton lint requirement of our textile industry.

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

He stressed: “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 percent of the workforce in the manufacturing sector.

The Deputy Governor added: “The bank’s interventions in cotton textile and garment sector is designed to resuscitate and return the textile industry to its glorious days, creating jobs, diversification of Nigeria’s conomy and achieving sell-sufficiency in cotton production.”

Kindly Share This Story