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We have accordingly recommended that government should consider the approval of the recommendation that the loans granted to the textile industries by the Bank of Industry, BOI, should be taken over by the Central Bank with a view to extending the repayment tenor. Also the accumulated 10 percent of tariff on imported textile materials meant for the development of local manufacturing sector in Nigeria should be made available to the sector players without much further delay. One of the biggest challenges facing textile manufacturers remains the high cost of energy needed to drive their mills. How has your committee addressed this problem? According to the International Textile Manufacturers Federation, (ITMF) power supply accounts for about 15 percent production cost in the textile industry. In Nigeria it is almost 45 percent for manufacturers in general and particularly peculiar to the textiles.  Inadequate and high cost of energy in the textiles industry has been one of the major impediments to investment in the sector. The committee in its bid to resolve the issue of high gas pricing has secured a presidential approval for the re-categorization of textile manufacturers as strategic industrial sector as against earlier classification in the “commercial sector.”  The major implication of the policy shift is the elimination of the many bottle necks in the supply of energy to the textile mills.   Once implemented by the gas producers, gas supply to the textile manufacturers will cost only three dollars per standard cubic feet as against the old regime of 8.45 dollars. Besides energy, there is also the crisis of scarcity of cotton lint which is a major raw material used by the textiles. What is your committee doing to address this?

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