Jibrin Abubakar
25 July 2008
Abuja — Members of the Textile Manufacturer Association of Nigeria yesterday told Daily Trust that President Umaru Musa Yar'Adua is responsible for the delay in the disbursement of the N70 billion textile revival fund.
They said all other stakeholders, including the Finance Ministry, NEXIM Bank and the United Bank for Africa (UBA) have completed their part of the deal and are now waiting for President Yar'adua's directive to start the disbursement.
One of the manufacturers said: "We are aware on good authority that every one has signed the agreement including the office of the Attorney General of the Federation and Minister of Justice, Ministry of Finance, NEXIM Bank and the UBA. But we learnt from the Ministry of Finance that the paper is on the table of the president and he has refused to give the go ahead because of the one per cent commission charged by the UBA and its foreign partners."
Managing Director of NEXIM Bank Baba Yusuf Ahmed had told Daily Trust that the fund would be ready for disbursement in March or April.
He did not pick his phone when a call was put to him yesterday. The line of the spokesperson of the NEXIM Bank Hajiya Hannatu Maina could not be reach yesterday.
A staff of the Bank, Modibbo Ahmad who could not comment on the issue, said NEXIM was currently making a presentation to the Northern Governors Forum in Kaduna.
Spokesman of the President, Mr. Segun Adeniyi could not be reach for comment also.
Another marketer who spoke on condition of anonymity said "the government is refusing to sign as the guarantor but we don't know the reason because Nigerians are suffering.
"Since the presidency has refused we would take our complaints to the Northern Governors Forum."
The Federal Executive Council (FEC) had on January 9 approved the amount as an intervention fund for textile industry.
The fund was sourced by the United Bank for Africa (UBA), with (NEXIM) authorized to negotiate on behalf of the Federal Government for lending to stakeholders in the sector.
An expert in the textile industry Gambo Hamza had however said the N70 billion fund was inadequate to tackle the problems of the local industry.
"Given the level of investment required in the textile industry and the rot that has taken place in it, I do not know where the N70 billion will go," he said in an interview with Daily Trust.
Hamza listed the problem of the textile industry to include obsolete machinery, lack of dyes and local industrial starch supply and poor yarn quality.
The UBA had told Daily Trust that: "The N70bn is not a loan from UBA. UBA Global Markets (the investment banking arm of the group) has been mandated by FGN/NEXIM to raise the funds from the domestic and international capital markets.
"The mandate for the NGN70bn bond finance the Textile Development Fund was signed only recently.
"The bond will be for 5 years and will be marketed both locally and abroad to local and international institutional investors on a best efforts basis.
UBA Global expects to raise the funds for on-lending to textile manufacturers by NEXIM.
"The fund is to be managed by NEXIM and not UBA. Our role as the investment bank is to raise the funds for NEXIM in the most cost effective, efficient and timely manner," the bank explained.
Meanwhile, Chairman of the Textile Manufacturers Association of Nigeria and General Manager of the United Nigeria Textile Limited Senator Walid Jibrin had told Daily Trust that if the fund was not made available soon, the remaining textile firms may close shop.
He said: "All I can tell you is that NEXIM bank has toured the textile firms around the country, sensitizing and inspecting them.
"I can also tell you they've concluded all arrangements to start the disbursement. What is remaining is for the Federal Government to endorse it. If the government fails to guarantee it, I can tell you that the remaining textile companies may collapse."
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