The textile industry in Nigeria will have a planned bailout, which was recently announced by the Central Bank of Nigeria (CBN). This is to diversify the economy and create job opportunities for the swarming population. Godwin Emefiele, CBN Governor made the announcement to key players in the industry. Emefiele stated that the funds would be released in a single-digit interest rate. The tenure of the loans would also be lengthy for stakeholders in the cotton, textile and garments segment, he added. The Governor also expressed that now, imports from Asia were completely dominating a subsector, which once employed over a million Nigerians. The Central Bank is now working together with the industry for complete solutions for long-term sustainable development of the sector. This is being done under Emefiele’s leadership.

CBN’s move is in the right direction, especially, now when Nigeria’s dependence on oil revenue will no longer sustain the country’s economy. In good times, Nigeria’s textile industry was a money-spinner for manufacturers, source of income for the people and was also a reliable source for the country to earn foreign revenue. For a flourishing country in textiles, which saw a growth of 67 per cent in 1991 and hired about 25 per cent workers in the manufacturing sector, most companies have either shut shop or are under performing. This is because of the unfavourable business environment, inconsistency in implementing government policies and absence of major indices of production in the sector. Encouragement to cotton farmers must be extended, zero per cent interest rates to be repaid after 15 years or more, and other such measures, need to be taken by the CBN to safeguard the country’s textile industry.