Business
FG Approves Repositioning Of Textile Industry
The Federal Executive Council (FEC) has approved policy measures aimed at repositioning the nation’s cotton, textile, garment (CTG), and fashion sectors of the economy.
The Minister of Trade and Investment, Mr Olusegun Aganga, said this when he briefed State House correspondent after the weekly FEC meeting presided over by President Goodluck Jonathan at the Presidential Villa, Abuja on Wednesday.
According to Aganga, the policy, which is part of the National Industry Revolution Plan (NIRP) covers the entire fashion value chain from cotton to designing.
He said that there was no better time to intensify implementation of the NIRP than now in view of the huge pressure on the nation’s foreign reserves due to falling oil prices.
“Globally, the CTG sector is a market of about 2.5 trillion dollars, accounting for about 3.6 per cent of the world’s economy.
“In terms of export, it accounts for about 800 billion (dollars); direct employment, close to 60 million and of course indirect (employment) close to 300 million.
“In Nigeria, the cotton and textile sector in the 60s and 80s was actually the second largest employer of labour after government, and was a critical sector of the economy.
“But of course as you know, we have seen a decline over the last two, three decades due to a number of factors:
“High cost of funding, high cost of energy, obsolete equipment and plants and machinery, quality and quantity of cotton, a lot of contamination, smuggling, counterfeiting and dumping.
“These are all the issues that this new policy is here to address.
“The policy measures cut across different sectors and is the most comprehensive plan we have put in place.“
The minister explained that industrial infrastructure, including 15 integrated textile and garment parks, would be established in different parts of the country.
He said the establishment of the parks, whose sites had been identified, would be based on a number of factors including nearness to raw materials and market, and the availability of support infrastructure.
According to him, the policy also contains measures that will address the issues of power supply, financing, availability of pure cotton, and the availability of local market for cotton products.
Aganga said that training on fashion designing was an integral part of the policy, adding that the Federal Government would work closely with some higher institutions of learning in that regard.
• Cue in audio 2 (Aganga)
“This policy measure also has some incentives for existing players in the sector and also for new investors coming in within the next two years.
“There are incentives to make sure that if you come in and invest in the next few years you get certain incentives.
“The last area of policy measures is local patronage, where we are saying that all military and paramilitary agencies and government schools must purchase only Nigerian made textiles and garments for their uniforms once the requisite standards are met.
“In addition, private schools would be encourage and given incentives to source their materials locally.“
• Cue out audio 2
The minister said he would meet with players in the industry in the next few days to study the policy and government’s implementation strategies.
The supervising Minister of Information, Mr Nurudeen Mohammed, the Minister of Works, Mr Mike Onolememen, Minister of Transport, Alhaji Idris Umar and the Minister of Aviation, Mr Osita Chidoka, were at the briefing.(NAN)
ARU/YEE/DCU
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The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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