Cotton, textile and garment industry stakeholders in Nigeria have asked the Government to release an intervention fund of around N1 trillion and also to extend the loan tenor rate, so as to support the industry.
Speaking at a workshop jointly organized by the Bank of Industry (BoI) and the United Nations Industrial Development Organization (UNIDO) in Abuja, Bank of Industry (BoI) Chief Executive Officer Evelyn Oputu highlighted the need for extending a source of credit for reviving the firms in the country’s textile sector.
Ms. Oputu stressed on the importance of the textile industry for Nigerian economy, and said it generates large-scale employment. She noted that BoI has already released around 60 percent of the N100 billion for revival of the textile industry, and looks forward to release more funds if allowed. She said BoI and other agencies are presently carrying out a mid-term assessment of the Cotton, Textile and Garment Scheme to assess the growth and to mark the areas demanding attention.
Acclaiming the Government’s interventional efforts to aid the textile industry, National Union of Textile, Garment and Tailoring Workers (NUTGTW) General Secretary, Isa Aremu, said that though the Government acted late, it has still aided revival of several firms.
He said while the textile industry still remains dynamic, even a single unit can rekindle around 10,000 jobs. However, limited funds have aided revival of only few firms, and hence, there is a need for more funds to step up the growth of the sector, he added.
Mr. Aremu called on the BoI to extend the tenor rate for loans extended to cotton, textile and garment units so as to make these loans more attractive for the firms and to aid their development.
He said reduced interest rates would help the sector to grow fast. Also, he added that the industry and the Government should jointly work to achieve a zero percent interest rate.
