Tag: Cotton

  • BoI approves N50b for cotton, textile garment sectors

    BoI approves N50b for cotton, textile garment sectors

    The Bank of Industry (BoI) has 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 Central Bank of Nigeria’s (CBN’s) guidelines on the fund.

    A total of N13.37 billion released by CBN has been disbursed to the various beneficiaries as at September 30.

    Its Managing Director, Waheed Olagunju who spoke at a one-day cotton, textile and garment stakeholders forum organised by the Federal Ministry of Industry, Trade and Investment and the bank in Abuja, stated that aside from funding, the bank and the ministry are working together to resolve issues such as power, smuggling, counterfeiting and patronage of locally made goods.

    He said: “As part of its efforts to promote the development of the textile and garment sector, the CBN recently put in place a N50billion special intervention facility to facilitate takeover of the existing debt as well as provide additional long term loan and working capital facility to existing companies in the Cotton Textile Garment (CTG) sectors.

    “I hope there will be more focus on preferring solutions to the challenges facing the CTG sector in fostering mutually beneficial relationships, networking and knowledge sharing amongst stakeholders on the current and future trends in the cotton value chain in Nigeria but around the world.”

  • Respite for Ogun cotton producers

    SIR: Cotton and its production is central to the economy of Abeokuta, the Ogun State capital and the cottage industry in the state with mainly women but also men producing Adire, the local tie and dye fabric which they sell in the state’s markets and beyond to make a living.

    Unfortunately, during the Goodluck Jonathan’s led administration, the government banned the importation of cotton though with right intention to increase employment, but the policy seems to have been unevenly implemented because while the dyers could no longer get cotton in the south, they could in the markets of Kano up north and this brought about great setbacks to the cottage industry in Abeokuta due to the troubles often got into with customs officers when trying to move it into Ogun State.

    The confiscation of cotton worth millions of naira, the stress of trying to reclaim their seized products, and other untold hardship they experienced for over four years, all combined to convince the dyers that they desperately needed a way to buy cotton fabric locally and this desire got answered when the Federal Ministry of Industry, Trade and Investment mooted the idea to establish a ginnery factory in the South-West.

    A cotton trade show was held in India in 2012 which was attended by all cotton producing states in Nigeria and the event gave all cotton growers and producers the opportunity to meet with buyers with samples of cotton staple grown in their states. This staple samples were then put through rigorous tests to ascertain the strength of the cotton staple and its length, factors which affect the range, as well as the quality of the fabric that could be produced with it. It was at this event that the political considerations that often stand in the way of merit-based selection processes in Nigeria was removed and Ogun State was declared as “the best cotton producing state in Nigeria”.

    Apparently, its long staple cotton which is a by-product of the soil type and rainfall pattern is a rarity that Ogun cotton shares with Mali and Egypt who are among the best cotton producers in the world. These factors taken together with the thriving Adire industry in Abeokuta, which represented potential off-takers of cotton produced by a regional ginnery made a strong case for Ogun State giving the Gateway State the privilege to house the ginnery factory in the South-West.

    With one masterful stroke by the Governor of Ogun State, Senator Ibikunle Amosun yesterday, August 24, the state is now positioned to exploit the entire cotton value chain, from growing the plant, to spinning and weaving in a ginnery, to production of textiles for clothing, furniture and other uses by the final consumer and you can be rest assured that this one project offers the opportunity to open up at least tens of thousands of jobs for the state’s teeming youths, women and even men.

     

    • Femi Osipitan,

    Abeokuta, Ogun State.

  • FG reaffirms commitment to revive textile industry

    FG reaffirms commitment to revive textile industry

    The Federal Government on Friday reaffirmed its commitment to revive the lost glory of the country’s Cotton, Textile and Garment industry for sustainable economic development.

    Mrs. Aisha Abubakar, the Minister of State for Industry, Trade and Investment said this at the Textile and Garment Manufacturing Conference organised by Africa Fashion Week Nigeria (AFWN) 2016 in Lagos.

    Abubakar said that the government was passionate about promoting growth in the industry and across its value chain.

    The minister said that the government would continue to create an enabling environment to promote the ease of doing business and active participation of the private sector to boost production.

    According to her, SMEDAN and BOI have been repositioned to implement NEDEP goals to boost SME development in the country.

    She stressed that government initiatives toward stimulating growth in the industry included tax incentives, harmonised tax, infrastructural development and financing.

    Abubakar said that the government was looking at creating production hub for Cotton industry and Information, Communication and Technology (ICT) sector.

    She said: “Nurtured MSMEs can contribute to GDP, job creation and wealth for the citizens.
    “We urge all stakeholders to contribute to economic growth by giving their best so that we can have a Nigeria that we can all be proud of.”

    Mr. Abiodun Akinkunmi, the Commissioner for Finance, Lagos State said that textile and garment industry had a strategic role to play in economic development.

    He said, “Africa is behind in terms of industrialisation because it has become over supplied with garments from China and used clothes from Europe and U.S. sold at give-away prices.’’
    “The low prices rather than boost the African market kills our cultural heritage. Our love for foreign clothes is destroying our economy.”

    He urged local manufacturers to improve the standards and quality of their products in order to discourage the dumping of foreign textiles and garments in the country.

    Akinkunmi also urged manufacturers to encourage the use of local materials like adire, aso oke, animal skin, ankara as major designs that must not go into extinct in order to boost the country’s GDP.

    He urged the Federal Government to exploit opportunities inherent in the African Growth Opportunities Act (AGOA) to boost the revenue of the non-oil sector.

    Prince Dapo Adelegan, the President, Nigerian-British Chamber of Commerce (NBCC) said that increased investment was key to developing the textile and garment industry.

    Mr Joseph Babatunde, the Head, Large Enterprises, Bank of Industry, said that the BOI believed in the potential of the African textile industry hence it floated the N1 billion fashion industry fund.

    He urged fashion entrepreneurs to exploit the opportunity of the finance to promote the growth of the industry.

    “We need effective utilisation of the fund so that we can make the industry better.
    “Sam and Sara, United Textile Ltd. (UNTL) are some of the projects that the bank has supported and they are performing well in the industry,” Babatunde said.

    He urged the Federal Government to evolve more strategies that would expand and promote the textile industry.

  • ‘Cotton production ‘ll revive textile industry’

    ‘Cotton production ‘ll revive textile industry’

    The General Manager, Agribusiness Development, African Cotton Company (WACOT), Mr. Pankaj Chawla,  has said a sustainable cotton production sector will help to revive the moribund textile industry.

    He said the Federal Government, through the Ministry of Agriculture and Rural Development, was doing its best towards reviving the industry by investing in the cotton value chain.

    Chawla, in an interview in Abuja, said the Ministry of Agriculture was working hard to revive the   industry.

    He said: “The Federal Government in its effort has  supported the cotton sector/ cotton value chain development.

    “The implication of a viable cotton industry in Nigeria is the resurrection of the textile industry to which the Federal Government distributes free cotton harvesting bags to farmers to reduce the contamination in cotton.

    “We started from 1250metric tons (mts) and now have up to 2500mts/3000 mt. And this I will say has stabilised the production and now a constant supply of cotton seed like other food crops is sustained and as demand comes we can always up scale it.

    “The important thing is to sustain the awareness and impact that has been created on cotton farmers towards ensuring continuity in the production of cotton.”

    The Federal Government had in 2012 signed a Memorandum of Understanding (MoU) with WACOT proposing a four-year seed multiplication plan to cover Katsina, Jigawa, Kano, Zamfara, Adamawa, Gombe, and Borno States respectively.

    The Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, said the MoU is aimed at expanding the production of cotton from 200,000 hectares in 2012 to 250,000 hectares this year.

    Dr. Adesina said 105,307 cotton farmers across the 11 targeted states would benefit from the Growth Enhancement Support Scheme covering seeds and fertilisers.

  • Govt commits to developing cotton

    The Federal Government has said it will develop the cotton value chain under its Agricultural Transformation Agenda.

    According to a document obtained by The Nation from the Ministry of Agriculture and Rural Development in Abuja, the government said  it has developed four improved varieties of cotton seeds, which included, Samcot eight, Samcot nine, Samcot 10 and Samcot 11 in 2012.

    Last year, six varieties of cotton seeds were also developed by the Institute for Agricultural Research (IAR), Ahamadu Bello University (ABU), Zaria.

    It included Samcot eight and 13 for Northeast, Samcot nine and 12 for Northwest, Samcot 10 for Northcentral, Samcot 11 for Southwest.

    Last year, about 2,385.38 metric tonnes of certified seeds were distributed to 110,370 farmers in Northeast, Northeest, and Northcentral under the Growth Enhancement Support Scheme (GES).

    The document noted that the ministry entered into an agreement with the West African Cotton Company Ltd (WACOT) on the development of expensive, production, processing and marketing of cottons in the country.

    According to the document, the agreement ensured the establishment of Seed Multiplication Scheme covering 15,625 hectares in 2012, which will be increased to 25,000 hectares in 2015.

    The document added that about 38 companies have been fully re-positioned in other to achieve better results.

  • N54b cotton  farming…A revolution under threat

    N54b cotton farming…A revolution under threat

    The Federal Government claims to have released N54 billion to cotton farmers in 2012 to boost cotton production in the country. Assistant Editor SINA FADARE reports that the reality on ground shows that majority of the rural cotton farmers are excluded from the largesse and the expected target of 400,000 metric tons before the end of this year is a mere illusion.

    In the early 80s, Nigeria was one of the highest producers of cotton in Africa. Cotton earned her about $8.9 billion annually. This amount, represented more than 25 per cent of the nation’s Gross Domestic Product (GDP). Today, the lofty dream has gone to the wind; the contribution of cotton to the GDP has dropped significantly to five per cent, bringing in a mere $300 million annually.

    Regrettably, of the 51 ginneries, which were in operation across the country in the 1980s, only 10 are operating now and at low capacity. This worrisome situation has not only killed the moral of cotton farmers, most of them have diverted their energies and little resources to more productive crops in other to earn their living. The few left in the business are daily groaning about the poor government rescue mission on cotton farming.

    In its Transformation Agenda, the Federal Government, in 2011, took a giant step to revive cotton farming when it procured 1.5m metric tonnes of pure and certified cotton seed for distribution to cotton farmers at a subsidised rate. The Minister of State for Agriculture, Alhaji Bukar Tijani, said the move was to launch Nigeria back to its glorious days of being the larger cotton producer in not only Africa but the world.

    He added that the ministry, the Central Bank of Nigeria (CBN) and commercial banks would aid farmers, ginners and textile companies secure basic incentives through a certified agro-dealer from the banks via private venture capital.

    The Minister then advised all the stakeholders to judiciously utilize the fund for the purpose intended as such loans can only be accessed upon collateral agreement entered in to with the individual farmers and the Banks.

    The minister, who was a special guest at a seminar on cotton production in Gusau, Zamfara State, said the Federal Government had resolved to religiously pursue the new value chain programmes on both food and cash crops production, adding that the contamination level had been identified to be more of human error than organic. He said the government had devised technologies for arresting situations that led to the contamination of cotton.

    In September 2012, the Federal Government released N54 billion to boost mass production of cotton in the country. Similarly, a stakeholder’s workshop was also held in Kaduna, where experts brainstormed on how to revive the moribund textile industries.

    The Minister for Agriculture and Rural Development, Dr. Adewunmi Adesina, said 200,000 hectares would be acquired for the cultivation of cotton, directing that improved cotton seeds should be distributed to farmers.

    To demonstrate its commitment to improve cotton production, the Federal Government signed a Memorandum of Understanding (MoU) with the West African Cotton Company (WACOT) to revive cotton production in the country.

    Adesina said the agreement with WACOT was to enhance the productivity of the ginneries from 150kg to 450kg of lint, while increasing the production of cotton seeds from 120,000 tonnes to 760,000 tonnes by next year.

    He said: “A major component of the plan is to multiply and distribute quality seeds, while raising the quality of local lint through the use of appropriate packaging and cotton grading.”

    The MoU signed between WACOT and the Ministry of Agriculture and Natural Resources provides for, “increase seed cotton production to at least 400,000 metric tons over a period of four years with the use of Good Agricultural Practices, Certified Seeds, recommended dosage of Fertilisers, Bio-Fertilisers and Crop Protection Chemicals etc.

    “The Client and Investor will produce adequate quantity of Breeder, Foundation Stage 1, Foundation Stage 11 and Certified Cotton Seed to achieve the seed cotton production of at least 400,000 metric tons over a period of four years.

    “Increase the Export of Cotton lint by 100,000 metric tons over four years; provide best practices and processing techniques and market access for Nigerian cotton.”

    As part of its obligation under the MoU, WACOT unveiled a new set of guidelines to cotton farmers, which would significantly advance the achievement of set targets. The guidelines covers land preparation, planting, fertiliser application, weed management, pest management and harvesting.

    Regrettably, almost three years after the MoU has been signed and the release of the purported N54 billion by the Federal Government, the hope of achieving a 400,000 metric tonnes of cotton this year remain a mirage.

    Investigation by The Nation revealed that far from the expected target, most of the incentives, particularly loans to the farmers, are not forth coming, therefore making the target of 400,000 metric tonnes by the end of this year and that of 760,000 metric tonnes in 2015 a mere dream.

    A visit by The Nation to Orile

    Ibara, Ilewo farm settle

    ment, Owowo community in Ewekoro local government, Iwoye ketu and Olorunda in Ayetoro South local government of the state to interact with most of the cotton farmers in Ogun State revealed that most of the incentives claimed to have been released to the farmers are mere political statements. Majority of the farmers who spoke to The Nation claimed ignorant of such incentives

    Lamenting the plight of the farmers, the Baale Ekerin of Orile Chief Raufu Oyetayo who has been an active farmer in the last 50years, said that pen farmers have robbed the rural authentic cotton farmers what belong to them in terms of incentive from government.

    Oyetayo regretted that he, like other farmers, heard of the huge money voted for cotton farmers from the media, particularly the one allegedly released in 2012, “but as l am talking to you now, none of the cotton farmers in this farm settlement got a penny from the money.”

    “When we got to the Bank of Industry and Agricultural Development Bank, they asked us to deposit 20 per cent of the intending loans we want to collect and follow up with chains of documentations, later the issue of collateral came in, before this was completed, the time of planting cotton has gone and after all the rigorous exercise, nothing came out of it because we did not hear anything from them again.”

    Recounting his experience during the good old days of the western region, the octogenarian farmers pointed out that whatever the then government under Chief Obafemi Awolowo promised, the farmers got them as at when due even before the public are aware of such incentives.

    “I could remember vividly how some of us got a soft loans to plant cassava and before the planting season, improved cassava stick were distributed to us a month before the planting season commenced and the proceed of what majority of the farmer made that year was so enormous that a lot bought vehicles and majority of the bachelors got married. That was how to assist farmers, not today that pen farmers took all the money away at the expense of the rural farmers.”

    Another cotton farmer, Alhaji Musibau Adewale at Iwoye ketu village where the Ogun State government said it has acquired about 1000 hectares of land for cotton farming, said he has to abandon cotton farming for other crops, such as like cassava in order to make ends meet, He lamented that it is high time the government stop all the deceit in the media and approach the farmers directly through the language they could understand.

    Adewale said if the government is sincere about reviving cotton farming, they know what to do to encourage the real farmers to plant cotton. “When the issue of cassava came up, majority of the cassava farmers were able to benefit through their co-operative societies, why did the government failed to use similar method to achieve the reviving of cotton in order to bail out the textile industries who are importing cotton for their operational need?”

    Irked by what could be termed a recurrent decimal by all the stakeholders in term of organising various workshops and conferences that nothing concrete came out for farmers, the former minister of Agriculture, Dr Shettima Mustapha, at a recent workshops in Kaduna cautioned stakeholders to stop talking and go back to the basics, if something tangible would be done as regards cotton farming in the country.

    Mustapha, a renowned farmer of long standing, said: “All this talk-shops and slides are enough. We have to go back to the farm,” insisting that farming is only done on the farm and not at the conference halls of cozy buildings.”

    When The Nation visited the Double Roller Cotton Ginner Plant at Orile-Ibara in Abeokuta North Local Government Area of Ogun State, it was deserted. The gin that served the cotton farmers in the entire South-West and Edo states looked like a deserted field with only two operating officers.

    Explaining while the place was deserted, Kayode Agbaje, who is one of the supervisors, said the workers were on vacation till March when the farmers might have harvested their produce which they would bring to the gin for processing.

    According to him, the gin serves Ogun, Oyo, Ondo, Ekiti, Osun and Edo state where all the National Cotton Association of Nigeria, NACOTAN from these states registered with the gin.

    “At the level of NACOTAN, we supplied them cotton seed for planting and the needed fertilisers. When production starts, all the farmers from the aforementioned states will bring their proceeds here for processing and they will be paid according to the volume of their cotton.”

    Speaking on why the place was like a ghost town with no activities going on apart from few fertiliser bags and some cotton seed inside the big factory, Olanile Adegbenro, another supervisor in the gin, said the workers who are most casuals would resume back to work around march when the gin might have gotten a sizable delivery of cotton which they can work with.

    Adegbenro explained that

    the gin is yet to operate at

    full capacity, adding that the amount of cotton available we determine how the operational capacity of the gin would be.

    He said: “We are expecting cotton from all the farmers who are members of the NACOTAN in the entire Southwest and Edo states.”

    However, speaking to The Nation on the plight of cotton farmers in Ogun State, the commissioner for Agriculture, Mrs. Ronke Sokefun, who claimed that the state have about 1,200 registered cotton farmers with the Federal Government Growth Enhancement Support programmes, GES, insisted that some of the cotton farmers in the state benefited from the soft loan.

    According to her: “We are aware that cotton farmers in the State benefited from the N100 billion fund released by the Federal Government to revive the cotton and textile industry in the country.”

    Although the commissioner could not confirmed how many cotton farmers that benefited and the amount given to them, but she insisted that the said fund was released to the Southwest Cotton Producing States, through the National Cotton Association of Nigeria, NACOTAN Nig. Ltd and not through any agency of Ogun State Government”

    She said: “The Double Roller Cotton Ginnery has been able to gin into bailed lint and seeds, all cotton produced from the Southwest and employed over 40 staff. Currently, plans have been completed to overhaul the Ginnery in preparation for next processing season.

    “Cotton farming has at no time, stopped in Ogun State. It has been the largest producer of long staple Samcott 11 cotton up till 2012 season and cotton production for 2013 is still being harvested. The Iwoye-Ketu community in the state is renowned for its suitability for cotton production and recently donated 1,000 hectares of land to the state government to support cotton production in the area. In addition. the State is in the process of acquiring 20,000 hectares of land to scale up cotton production in the State.

    But a member of the NACOTAN in Abeokuta, who spoke to The Nation on condition of anonymity, said the commissioner was economical with the truth, adding that the issue of accessing loan from the BoI, was a bad dream he did not want to remember.

    He regretted that if the commissioner did not know the number of farmers that benefited from the loans and how much each got in the state. He said: “That will tell you that a lot of things were covered up. Go to the farmers and they will tell you all the impediments put up in terms of collateral which denied them of being a partaker from the said fund.”

    The Nation’s investigation revealed that most of those that benefited from the funds are big time farmers who are not into cotton farming but were highly connected and could provide the needed collateral to back up the loan. In fact, some of them are politicians who used their influences to attract the loan and diverted it to other businesses.

    This assertion was equally confirmed by one of the senior managers in BoI, who spoke to The Nation on condition of anonymity. He said: “The whole exercise was political because with all the conditions put forward by the bank, it was glaring that the rural farmer who actually needed the fund were not able to access it.”

    The Agricultural Economist

    said over the years there have

    been a lot of lofty policies on agriculture, which failed at the level of implementation due to corruption ‘which is feasible in all area of our endeavours’.

    He added: “As at present the country is producing about 125,000 metric tonnes with the hope that with the available fund, the production capacity will rise to 400,000 metric tonnes by the end of 2014, but the way things are going and with what is happening to the available fund, such a progress may remain an illusion.”

    On the way out, Amos Adio Oga, a notable cotton farmers in Ilewo Orile farm settlement in Abeokuta North Local Government area of Ogun State, said: “It is high time the government stopped paying lip service to the farmers. If they want to have revolution of cotton and want to revamp it like what it used to be in the past, they know what to do. It is the same government that encouraged us to operate like co-operative society and made sure that we register with our state ministry of agriculture, after doing this, nothing come out of it, it is so sad.

    “We should all go back to the drawing board and make sure that the farmers are the centre focus of any agricultural policy otherwise we are all deceiving ourselves. Either the government likes it or not, the bitter truth is that huge investment in agriculture is the only way out of the imminent food crisis.”