CBN restricts textile importers access to forex

Central Bank of Nigeria has imposed restriction on access to foreign exchange on all textile material coming into Nigeria. CBN Governor Mr. Godwin Emefiele said this at the textile industry stakeholders meeting in Abuja.

In an opening remark he said “Effective immediately, the CBN hereby place the access to foreign exchange for all forms of textile materials on the foreign exchange restriction list.

Accordingly, all foreign exchange dealers in Nigeria are to desist from granting any  importer of textile material access to foreign exchange 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. We shall, initially  support  the importation of cotton lint for use in textile factories, with a caveat that such importers shall begin sourcing all their cotton needs locally beginning from year 2020.

As part of its Anchor Borrowers Program, the CBN will support local growers of cotton to enable them  meet the needs of the textile industries in Nigeria. The CBN shall also support  efforts to source high yield cotton seedlings so as to ensure the yields from our cotton farmers meet global benchmarks. 

“As regards provision of stable electricity, the CBN shall support the creation of textile production centres in certain designated  areas in Nigeria where access to electricity shall be guaranteed. In 2016, the CBN began discussions with the Kano and Kaduna State Governments to establish textile industrial areas in a bid to guarantee stable electricity in those industrial areas. We would intensify efforts with these governments and others that may show keen interest to see to the quick actualisation of such programs. We believe that these measures will discourage smuggling, resuscitate this critical industry, and support your efforts at creating jobs for Nigerians”. 

According to Emefiele “Noticeable declines have been recorded in our monthly food import bill which declined from $665.4 million in January 2015 to $160.4 million as at October 2018; a cumulative fall of 75.9 per cent and an implied savings of over $21 billion on food imports alone over that period.  A lot of progress has been made, but at the same time more needs to be done in order to ensure that we build an inclusive economy that supports domestic production of goods and services, while offering job opportunities to teeming Nigerians. 

He said “On assumption of office in June 2014, I indicated in my inaugural speech that one of my key objectives as Governor of the Central Bank of Nigeria is to focus our energies in building a Central Bank that will devote its energies, on building a resilient financial system that will serve the growth and development needs of our beloved country, Nigeria.

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