• February 27, 2021

Nigeria’s cotton market sees rebound after textile forex ban

Nigeria’s cotton market has witnessed a marginal rebound almost two years after the Central Bank of Nigeria blocked traders from having official access to forex for the importation of textiles into the country.

The volume of production and consumption of cotton in the country rose by at least 7.5 per cent in 2020 after the figures dipped in 2019, according to data from the United States Department Of Agriculture (USDA), analysed by PREMIUM TIMES.

The rise was a far cry from figures recorded between 2006 and 2011.

In 2006, cotton production reached 1.8 million tonnes while consumption stood at 1.7 million tonnes, the data show. Both fell to 920,000 metric tonnes and 690,000 metric tonnes respectively by 2014.

By 2019, when the CBN restricted foreign exchange for textile products imports in a bid to revive the local fabric production industry, Nigeria’s cotton production stood at 920,000 metric tonnes while consumption stood at 805,000 metric tonnes.

In 2020, a year after, production surged to 1.6 million metric tonnes while consumption jumped to 989,000 metric tonnes.

Farmers say the restriction has helped their businesses in many ways.

Those who spoke to PREMIUM TIMES said the decision has paid off and has resulted in the creation of ginnery across the country, job creation, and the overall growth of the textile industry.

Anibe Achimugu, the president of the National Cotton Farmers Association of Nigeria, said the restriction of forex on textile imports was a game-changer to the industry.

SOURCE: PREMIUM TIMES

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