The Central Bank of Nigeria (CBN) has allocated N50billion intervention fund for the textile industry. The fund will be administered at 4.5 per cent interest by the Bank of Industry (BoI), announced CBN in a release titled “Non-Interest Guidelines for Intervention in the Textile Sector”.
The funds would be used to resuscitate the ailing textile sector, restructure facilities and provide further facilities for textile firms with genuine need for intervention. The one-off intervention will terminate by December 31, 2025.
Activities to be covered in the Cotton Textile Garment (CTG) scheme include cotton ginning (lint production), spinning (yarn production), textile mills, integrated garment factories (for military, para-military and schools and other uniformed institutions).
Textile companies with an existing facility in the books of BoI under the CTG scheme, and those with existing facilities in Deposit Money Banks/Non Interest Financial Institutions (NIFIs) are not allowed to participate in these activities.
