FG Approves New Fund Machanism In Textiles Industry

The Federal Govern
ment has given its nod to a new funding mechanism that will ensure that cotton, textile and garment companies access to long-term, low interest loans to enable them finance their operations.
The Minister of Trade and Investment, Dr Olusegun Aganga, said this at the launch of the Nation’s Cotton, Textile and Garment policy as well as the inauguration of a 17-member implementation, monitoring and review committee for the policy in Abuja, recently.
The Tide source, gathered that it is the new national cotton, textile and garment policy targeted at revitalizing and boosting the growth and development of the industry.
Aganga noted that the policy, which was a product of prolonged and comprehensive consultation with all concerned stakeholders in the industry was expected to address all the challenges in the textile, cotton and garment operation.
The minister also said that the move would enhance the quality, quantity, production capacity marketing and competitiveness among players in the industry.
He further explained that it would control the influx of fake and substand textile and garment into the country and encourage competitiveness among the operators.
According to him, a presidential approval has been obtained for some aspects in the policy such as the conversion of the loan, given to the Bank of Industry (BOI) in 2010 by the Federal Government for on – lending to the industry into Federal Government equity in the Bank.
He noted that it will enable the bank to elongate the period of the fund which is slated to end in 2017.
The Tide source, further gathered that some beneficiaries of the loan, have had the loan tenure elongated, while their interest on the loan was reviewed downwards.
He also argued that the reason for the prime attention given by the Federal Government to the industry was its high potential in job creation