Breaking News

CTG industries revival Fund: BOI approves 10 billion applications

By Franklin Alli
The Bank of Industry, Monday, disclosed    that it has approved ten billion application for the Federal Government’s  cotton, textile and garment(CTG.) industries revival fund, warning that due process would   be strictly adhered to in disbursing the money to beneficiary companies.

The bank’s Managing Director, Ms. Evelyn Oputu, during a parley with stakeholders  of Nigerian Textile and Garment Association(NTMA) led by the Association’s Director General, Mr. Jaiyeola Olarewaju, said prior to the recently launched 10 billion bond-fund for  industries revival scheme, the bank received 14 billion applications out of which 10 billion had been approved as possible beneficiaries.

According to her, due process will be followed, stressing “we are not going to relax anything in the terms and conditions for accessing the loans.”

“The N10 billion cotton textile garment  revival scheme was not a rumor, it is real.  The fact that it is Federal Government’s fund does not mean it is a grant.  We are going to apply rules and regulations of the banking industry in the disbursement of the money to beneficiaries” she said.

She further noted: “the proceed of the N10 billion bond-funded ctg industries scheme, floated by the Debt Management Office(DMO) shall be made available to interested and genuine industry participants across the value chain of the ctg sector at 6 per cent interest rate.

“Beneficiaries shall include farmers producing cotton and other fibre products, ginery operators, ginning and textile millers, and investors in garmenting.  The bank is in charge of management and disbursement of the fund, “ she stated.
She assured NTMA that the bank would work with them to ensure a seamless disbursement of the fund to relevant stakeholders.

Mr. Jaiyeola who spoke on behalf of the textile and garment manufacturers, in his submission  , appreciated government’s gesture for the scheme.

Vanguard learnt that the expectation of the federal government is that the ctg industry revival scheme as a whole will :
*Strengthen the capacities of existing public and private sector technical support institutions and establish new ones for the industry that shall lead to the acquisition of national expertise in quality assurance and market;
*improve agricultural and primary cotton processing practices, enhance output quality, productivity, competitiveness and access to foreign markets for Nigerian cotton and textile products
*facilitate access to long-term funds at reasonable interest rates,

*scale up the fight against smuggling of counterfeit textile products through the capacities of the Nigerian Customs Service and implementing a high level diplomatic campaign.

*increase power generation and distribution to core CTG industry centres around the country and address a critical inadequacy that is partly responsible for the down turn in the the industry’s competitiveness, and  retool and upgrade ginneries, spinning mills and textile mills, strengthen the few existing garmenting enterprises as well as establish new ones.


Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.