Post by Ismail AbdulAzeez on Jul 24, 2019 9:45:22 GMT 1
In an attempt to boost the local textile industry, the apex bank had on March 5, 2019 announced a ban on importation of textile products into the country.
In fact, the CBN excluded all forms of textile materials from the forex market (in both official and unofficial windows).
The CBN Governor, Godwin Emefiele, said the action was taken to boost the textile industry and make it a more robust employer of labour. Thus, forex dealers inclusive of commercial banks and bureau de change should desist from granting any importer of textile material access to forex with immediate effect.
CBN had in its meeting with stakeholders in the textile value chain listed all forms of textile materials among items prohibited from foreign exchange in the official windows.
CBN also promised financial intervention to textile manufacturers at “single digits rate, to refit, retool and upgrade their factories to enable them produce high quality textile materials for the local and export market.”
This decision is reminiscence of CBN’s 41 items policy in July 2016 when it restricted products such as rubber and rubber products, glass and glass wares, furniture and fittings, rice, palm oil, textile(etc) from accessing forex from official windows.
However, the decision of CBN to roll out the forex ban on importers was borne out of the fact that the country’s textile sector needs a surgical intervention in a bid to renew the confidence of operators, who have been suffering emotional stress following the negative consequence of the importation, product cloning and counterfeiting of all forms of textile materials into the country.
In a swift reaction to the apex bank’s forex exclusion policy on textiles pronouncement, the General Secretary, NUTGTWN, Comrade lssa Aremu, lauded the CBN for banning access to forex to importers of textile materials.
Aremu also a national executive council member of the Nigeria Labour Congress (NLC) gave the commendation in llorin, Kwara State recently.
He said the action of the CBN would promote growth of the textiles industries in Nigeria. He observed that smuggling and wholesale importation of textiles had contributed to the closure of many textile industries in the country.
Aremu equated smuggling to “economic terrorism,” adding that the new initiative of the CBN governor would boost local production, create jobs and lessen pressure on forex if fully implemented.
According to him, CBN will make life difficult for smugglers and warned forex dealers in the country to desist from granting any importer of textile material access to foreign currency in the foreign exchange market.
In fact, the CBN excluded all forms of textile materials from the forex market (in both official and unofficial windows).
The CBN Governor, Godwin Emefiele, said the action was taken to boost the textile industry and make it a more robust employer of labour. Thus, forex dealers inclusive of commercial banks and bureau de change should desist from granting any importer of textile material access to forex with immediate effect.
CBN had in its meeting with stakeholders in the textile value chain listed all forms of textile materials among items prohibited from foreign exchange in the official windows.
CBN also promised financial intervention to textile manufacturers at “single digits rate, to refit, retool and upgrade their factories to enable them produce high quality textile materials for the local and export market.”
This decision is reminiscence of CBN’s 41 items policy in July 2016 when it restricted products such as rubber and rubber products, glass and glass wares, furniture and fittings, rice, palm oil, textile(etc) from accessing forex from official windows.
However, the decision of CBN to roll out the forex ban on importers was borne out of the fact that the country’s textile sector needs a surgical intervention in a bid to renew the confidence of operators, who have been suffering emotional stress following the negative consequence of the importation, product cloning and counterfeiting of all forms of textile materials into the country.
In a swift reaction to the apex bank’s forex exclusion policy on textiles pronouncement, the General Secretary, NUTGTWN, Comrade lssa Aremu, lauded the CBN for banning access to forex to importers of textile materials.
Aremu also a national executive council member of the Nigeria Labour Congress (NLC) gave the commendation in llorin, Kwara State recently.
He said the action of the CBN would promote growth of the textiles industries in Nigeria. He observed that smuggling and wholesale importation of textiles had contributed to the closure of many textile industries in the country.
Aremu equated smuggling to “economic terrorism,” adding that the new initiative of the CBN governor would boost local production, create jobs and lessen pressure on forex if fully implemented.
According to him, CBN will make life difficult for smugglers and warned forex dealers in the country to desist from granting any importer of textile material access to foreign currency in the foreign exchange market.