The Bank of Industry (BoI) has disbursed the sum of N13.37billion to the beneficiaries of the Central Bank of Nigeria (CBN)’s N50billion textile intervention fund.
This disclosure was made by the acting managing director of BoI, Mr Waheed Olagunju, during a One-Day Cotton, Textile and Garment Stakeholders’ Forum yesterday in Abuja. Olagunju assured that with the various intervention schemes of the federal government, the sector would soon bounce back.
In his update on the disbursement of the fund under the bank’s custody, Olagunju explained that out of the N100billion intervention fund, the bank had approved loans to 70 projects in the CTG value chain at the cost of N60 billion.
Also of the N50 billion additional fund made available by the CBN, Olagunju hinted that the bank to date till date has disbursed the sum of N13.37 to the various beneficiaries.
He explained that the fund was approved by the CBN as part of the efforts to promote the development of the textile and garment sector of the economy.
He said, “The CBN recently put in place a N50 billion special intervention facility to facilitate takeover of the existing debt as well as to provide additional long term loan and working capital facility to existing companies in the CTG sector.
“The bank has to date, approved loans of over N50billion comprising debt takeover, term loan and working capital to 40 beneficiaries across the entire value chain in line with the CBN guidelines on the fund. A total of N24.37billion released by CBN has been disbursed to the various beneficiaries as at September 30, 2016.”
He noted that modest achievements have been made in the sector as a result of the various intervention schemes of the government.
He disclosed that while capacity utilisation of some of the beneficiary companies has increased from 40 per cent to about 60 per cent, employment generation has hit 60,000 across the nation.
Olagunju further said the bank had aligned its operations with the objectives of the Nigerian Industrial Revolution Plan (NIRP) aimed at building the nation’s industrial capacity and improving the competitiveness of locally produced goods in Nigeria as part of the efforts to revamp the sector.
In her response, the minister of state,ministry of industry, trade and investment, Mrs Aisha Abubakar, said the Buhari-led administration had identified the missing links in the sector and would muster the needed political will to tackle them.