The Central Bank of Nigeria on Tuesday,March 6th, placed a restriction on the sale of foreign exchange to importers of textiles and other clothing materials in the country.
The CBN Governor, Mr Godwin Emefiele, announced the measures during a textile industry stakeholders meeting in Abuja on Tuesday.
The CBN said the measures were taken to reposition the textile, cotton and garment industry for job creation and the development of the economy.
Top executives of companies operating in that sector of the economy were in attendance in the meeting which held at the apex bank headquarters.
The governor said the apex bank took the tough measures to restore the sector back to its enviable place where it created jobs, boosted the economy and created wealth for the people.
Mr. Emefiele said to achieve the objective, the apex bank had decided to place a restriction on the sale of foreign exchange to importers of textiles and other clothing materials and the restriction which took immediate effect was to encourage the growth of textile and cotton industry.
The CBN governor said henceforth, banks and dealers in the foreign exchange market were prohibited from selling forex to those seeking to import textiles and clothing into the country.
Mr. Emefiele said the apex bank,has begun discussions with the Kano and Kaduna state governments to establish textile industrial areas in a bid to guarantee stable electricity in those industrial areas.
Emefiele said the bank would intensify efforts with the state governments and others that might show a keen interest in the quick actualisation of such programmes.
Given the high domestic demand for textiles, he said the intervention of the apex bank would be able to create jobs for the economy while increasing the production of textiles in Nigeria.
He said when the amount spent on outfits for religious and social events on a weekly basis was considered, the potential market size would be well over $10bn annually.
Some of the stakeholders who spoke at the event commended the governor for announcing the measures to revive the industry.