About 25,000 jobs have been created in the last few months through the Textile and Garment Intervention Fund, the General Manager, Operation, Bank of Industry (BoI) Joseph Babatunde has said.
He told The Nation that about 52 textile firms that were closed for many years have been revived through the grants, adding that these firms were able to meet the bank’s requirements to access the facility.
He said the revival scheme has started yielding results as it has revived some other jobs that were lost as a result of the closure. “So far, 52 firms have benefited from the fund and this has gone a long way in revitalising some of the textile firms that had closed down,” he said.
Babatunde said over 60 per cent of the N100billion Textile Revival Fund being managed by the bank has been disbursed, raising the hope that the once vibrant sector will soon bounce back.
He said the scope of the fund has also been extended to cover manufacturing in the sector, including garments, cotton production, spinning, processing and printing, adding that the fund has also sustained some textile businesses which otherwise would have been closed by now.
On how the funds could be accessed by operators, he said: “You don’t need insider connection. The entrepreneur should have a well-packaged bankable proposal before seeking funding from the bank. The bank insists on collateral for big loans because the money is not free. It belongs to Nigerians. And if you don’t pay back, we will use the collateral to recover the loan.”
He said the industry is bouncing back, adding that Nigeria, like other African countries, is facing challenges of infrastructure deficit.
“By the time we address the challenges of infrastructure such as power and transportation, you will see the rate at which we will be moving.
“The railways have started, and government is also addressing power, so in a no distance future, we will start seeing the Small and Medium Enterprises (SMEs) fully back in place and moving.
“Majority of the SMEs face challenges in their quest to secure loans for their businesses because many of them approach the bank not equipped with the necessary information required to enable them secure the loans while others do not know the mandate and limit of the bank,” he said.
On the recapitalisation of the bank, he confirmed that the Federal Government has given approval for its recapitalisation.

AFTER 10 years of closure, the management of Arewa Textiles Limited may, in a few weeks time, reopen its Kaduna plant for production, following the decision by the company to settle all outstanding obligations to creditors and pay workers salaries, estimated at about N1 billion.

The reopening of production at the facility may signal the long awaited revival of the nation’s ailing textile manufacturing sub-sector.

Already, the company has opened a refinancing deal with the Bank of Industry (BoI), for higher garment production profile at the moribund facility.

Respite came to the distressed Arewa Textiles Workers when the officials of the National Union of Textiles Garment and Tailoring Workers of Nigeria

(NUTGTWN) held a rally in Kaduna, saying that all outstanding salaries and other entitlements of the workers would soon be paid before the textiles factory reopened for production.

The news of the scheduled reopening of the company was received with jubilation by hundreds of workers who defied the heavy rainfall to attend the rally, held at the plant’s main entrance.

The Deputy Secretary-General of the Textiles Workers Union, Chimeize Sylvester, who addressed the workers on the decision to re-tool the comatose factory, said that the daughter of the sole owner of the company, Dr.

Nemile Achimugu, has already opened discussions with the Receiver to the

textiles company- Union Bank Plc and Labour on the plans to reopen the factory for production.

According to him, on Wednesday, 21st August, 2013, Achimugu called a meeting of all departmental managers, supervisors, senior staff union executives, and junior staff union executives to discuss the plans to revive the Textiles Company”, pointing out that “it was announced to the workers that the Management of Arewa has signed an agreement with the receiver (Union Bank) to reclaim their assets and all security documents with the bank within six months.

“The management and the bank officials will enter the premises within two weeks to jointly take inventory of what remains of the company, after high level of vandalization that took place there”.

Sylvester explained that “within these six-month period, the company will settle its debts to the bank and commence payment of workers’ entitlements”.

However, he added that “according to her (Adimugu), the company intends to go into massive garment production as negotiations with Bank of Industry has reached advanced stage. She further announced that Arewa will happily celebrate her 50 years of existence in the company by next year.

“We are hopeful that with the ongoing efforts and commitment of Achimugu, workers entitlements would be settled as soon as possible and Arewa Textiles brought back to operation.

The union remains committed and willing to cooperate with the board of directors of Arewa Textiles with a view to ensuring the settlement of the outstanding benefits of the workers and revival of the company”.

It would be recalled that on January 5, 2005, the management of Arewa Textiles Plc shut down “the company without adherence to laid down procedures”.

Before the closure, Sylvester noted that “workers salaries, allowances, gratuities and other entitlements of workers amounting to N1 billion were not paid” adding that “the Union dues and other levies running into several millions, which management deducted from workers salaries, were not remitted to the union.”

“Prior to the closure, management on Monday April 14, 2003 unilaterally terminated the appointment of about 342 workers while 481 were summarily dismissed for protesting the non-payment of backlog of salaries owed them by the company.

“The union promptly condemned and frowned at this action of management and subsequently sent a protest to the management. In order to ensure a peaceful resolution of the impasse, the Union held several meetings with the Management of Arewa Textiles plc all to no avail.

“Due to the relentless pressure, management eventually called for a meeting of stakeholders (Stakeholders Forum of Arewa Textiles Plc.) on Monday July 26, 2004, comprising members of the board of directors, including the late Vice Chairman of the Board, Chief P.S. Aisha, management staff, senior staff association and workers’ representatives to resolve the issue”.

“Several meetings of management, union, Labour Ministry and security agencies were held and all agreements reached and signed were either turned down or not implemented by Arewa Textiles.”

Tolexander: Up Aregbesola!

0lumide: [size=15pt]DEBUNKED OLD NEWS[/size]

taharqa:

yunglykmine: #TeamFreshAir.
GEJ is working jor. Nigeria can't be transformed within a year. If we have to move gradually, we will get there soon.

ASUU shouldn't be neglected anyway.
#TeamFreshAir.

lorretta u: Now that great news

Rossikk: I've been following the revival of the textile industry with keen interest over the last year. I'm impressed by the amount of work and resources ploughed into this sector by the Jonathan govt after decades of neglect by preceding military regimes.

Chai! But military rule dealt with us sha!! Those guys just dropped everything and faced oil.

Kairoseki77: This is another excellent Ogun state initiative!

Kairoseki77:

....

This has nothing to do with GEJ.

Kairoseki77: This is another excellent Ogun state initiative!

Tolexander: http://www.oranmiyan.org/2013/08/28/fresh-3000-jobs-in-osun-as-aregbesola-commissions-omoluabi-garment-factory/

Godshand:

This one annoying thing abt Nigerians. Once they hear news (with physical verification or not), they begin to jubilate anyhow. What impressive news can a polithiefcian not tell his people just to win thier admirations? Jubilate only when u see those things on ground not on news (online or offline). As far as am concerned, GEJ is the worst failing president we ever had.


End time tins to gej
End time tinz to gej govt
End time tinz to pdp
End time tinz to those who believe this news without physical verifications.

abv all, TINZ TIME END

U can arrange it urself

taharqa: So? How does this mean that Aregbe is involved in dis resuscitation of d comatose Textile Industry across Nija. Craze don start to dey catch you too?? ..... If anything, this Osun Factory may be part of d efforts of d FG Entire Value Chain move to resuscitate d Textile sector...and admitted, what d Osun State Govt and its Private parter, is doing here (setting up a GARMENT Comp) is a very, very Great move. We should start focusing in Garment Production, rather than just spinning and produces 'ordinary' Textile materials, cos that is where d Jobs reali are. Arewa Textile and others seem to be thinking in same direction too....