Despite the COVID-19 pandemic and pervasive insecurity, Nigeria’s textile sector generated 10 million yarn materials in 2020. The apex bank sponsored over 278,500 hectares in 2019 and 2020, with over 90,000 metric tons of cotton seed harvested, according to Godwin Emefiele, Governor of the Central Bank of Nigeria.
In addition, nine ginneries were brought back to life and ginned cotton all year for the first time in ten years, resulting in the creation of nearly 620,000 direct and indirect jobs in just two years, while the ginneries’ industry capacity climbed from 19 percent to 51 percent. Emefiele disclosed that the textile industry received 100% of its key raw material (cotton lint) at a CBN-subsidized rate of N440,000, as opposed to the market price of N593,000, and that the uniformed services have begun to use made-in-Nigeria fabrics for their uniforms.
A memorandum of understanding was signed between 2019 and 2020 among critical stakeholders across the value chain, including cotton farmers, ginneries, textile and garment companies, and end-users of cotton products, and this has resulted in at least 5 agencies partnering with local textile manufacturers, according to Emefiele. In 2021, the Bank intends to involve ginneries in backward integration by cultivating an average of 53,100 hectares with an expected production of 106,200 metric tons per hectare.
The Bank is also collaborating with existing prime anchors to cultivate 10,000 hectares of land with a projected output of 20,000 metric tons, according to Emefiele, who also stated that the CBN will collaborate with associations to cultivate 80,000 hectares of land with an average output of 120,000 metric tons per hectare. He reaffirmed CBN’s commitment to ensure the CTG program’s successful implementation across the country, saying the organization will continue to devote adequate resources to the effort.