The move is part of the measures by the apex bank to revive textile companies operating in the country and to make the sector provide jobs for Nigerians.
The plan is contained in the technical cooperation proposal for revamping the cotton, garment and textile sector in Nigeria. The proposal, which was made available to our correspondent, would be executed by the Textile Revival Implementation Committee inaugurated by the CBN Governor, Mr Godwin Emefiele.
The committee is made up of representatives from the CBN; Kaduna State government; ministries of Power, Works and Housing; Finance; Agriculture and Rural Development; Commerce and Industry and the Nigeria Customs Service.
Within the last 20 years, the CTG sector had suffered so many challenges some of which are low cotton production, poor power and transport infrastructure, obsolete production lines, smuggling and counterfeiting, inadequate local patronage, high cost of production, and multiple taxation , among others.
The document said the apex bank was also discussing with the Cotton Association of Nigeria to increase the cultivation of the 100,000 hectares to 200,000 hectares by the 2020 planting season.
It said an improved variety of cotton seeds had been obtained with a minimum guaranteed yield of 2.5 metric tonnes per hectare as against the 1.5 metric tonnes average yield in Nigeria.
The document also stated that a framework for the eradication of smuggling and dumping of textile products into Nigeria would be developed.It read in part, “Figures from the ministry of trade show that in its boom years, the industry used to net an average of $2bn annually, across the value chain.
“The industry provided about one million direct jobs and over two million indirect jobs and hence accounting for about 60 per cent of the textile industry capacity in West Africa.