The Central Bank of Nigeria (CBN)
has directed commercial banks and bureaux de change operators to stop sale of
forex for the import of textiles and clothing materials in the country.
Godwin Emefiele, governor of the
bank, announced this at a meeting with stakeholders in the cotton sector in
Abuja on Tuesday.
He said the restriction was borne
out of the federal government’s plan to revive the textile sector and create
employment for millions of Nigerians.
“The CBN hereby place the access
to FX for all forms of textile materials on the FX restriction list,” he said.
“Accordingly, all FX dealers in
Nigeria are to desist from granting any importer of textile material access to
FX in the Nigerian Foreign exchange market.
“In addition, we shall adopt a
range of other Strategies that will make it difficult for recalcitrant
smugglers to operate banking business in Nigeria. The details of those
strategies will be unfolded in due course.”
The CBN governor highlighted how
Nigeria gained from the booming textile industry that was characteristic of the
1970’s and early 1980’s, narrating the effect of “rising operating cost and
weak sales due to high energy cost, smuggling of textile goods, and poor access
to finance.”
He said Nigeria currently spends
above $4 billion annually on imported textiles and ready-made clothing with a
potential market size well over $10bn annually.
Emefiele said with the new
restriction, sourcing of FX for textile importation and even smuggling will be
next to impossible, adding that this will “support the revival” of the sector.
He added that the bank will
support local growers of cotton, provide stable electricity and build textile
production centers across the country which will meet the needs of the entire
value chain.
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