The Central Bank of Nigeria (CBN) has announced plans to revive Nigeria’s textile industry, unveiling measures that will see the development achieved. To this effect, the CBN has placed a restriction on forex access to importers of textiles and other clothing materials into the country. Henceforth, importers of textile and textile materials will not be able to purchase foreign exchange from banks and Bureau de change as well as other operators in the official foreign exchange market.
The announcement was made by the CBN Governor, Mr. Emefiele, at a meeting with textile industry stakeholders which held in Abuja last week.
“Effective immediately, the CBN hereby place the access to FX for all forms of textile materials on the FX restriction list. Accordingly, all FX dealers in Nigeria are to desist from granting any importer of textile material access to FX in the Nigerian Foreign exchange market.”
According to Mr Emefiele, the restriction will boost the domestic textile industry as well as create jobs for Nigerians. He noted that the apex bank would initially support the importation of cotton lint for use in textile factories, with a caveat that such importers will begin to source their cotton needs locally beginning from 2020.
Below is the Ventures Africa Weekly Economic Index, for the week ending 8th of March 2019. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange (NSE), as of 8th of March 2019, showed that the All-Share Index appreciated by 0.21 percent from the previous week ending 1st of March 2019. Market capitalization at the close of trading during the week under review was N11.905 trillion, a 0.21 percent increase from N11.829 trillion recorded the previous week. The All Share-Index for the week under review closed at N31,924.51
Top five price gainers and decliners in the week under review:
Top five price gainers
Wema bank Plc.
Sovereign Trust Insurance Plc.
International Breweries Plc.
NPF Microfinance Bank Plc.
Top five price decliners
Mutual Benefits Assurance
PZ Cussons Nigeria Plc.
Veritas Kapital Assurance Plc.
Livestock Feeds Plc.
Academy Press Plc.
How did the Naira fare?
The value of the Naira against the dollar remained unchanged, with the Naira ending the week at 361NGN against the dollar on the 1st of March 2019, the same value that was recorded the week before.
How did the price of oil fare
Brent oil prices finished the week at $63.07 per barrel on the 1st of March 2019, representing a decrease from 63.15 recorded a week earlier. This fall was partly attributed to a halt in recent US jobs gains in February. It was also caused by a slowdown in China’s import and export, and the European Central Bank’s slash of the economic outlook for Europe.