BANK of Industry BoI has
attributed the collapse of the
cotton and textile companies in
Nigeria to the failure of state
governments to implement the
recommendations of the cotton
and textile garment scheme.
BoI’s Executive Director,
Small and Medium Enterprises
MEs, Waheed Olagunju who
spoke in Kaduna recently during
the regional vocational skills
competition organised by the
bank in partnership with the
National Board for Technical
Education, NBTE, said the bank
has disbursed 60 per cent of the
N100 billion facility to industries
in the sector.
He also blamed failure to
implement the recommendation
on how to increase cotton
production, address smuggling
and lack of lubricants for
the woes of the industry on
lacklustre attitudes of some state
According to him, “CTG
scheme, if you remember was
launched around 2010 and it was a
N100 billion facility. We disbursed
about 60 per cent of the facility to
industries in that sector in Nigeria
before it was converted to equity.”
“You will agree with me that
funding is only one of the factors
of production, there are other
things that go with running
successful an industrial enterprise,
the bank made money available
but other recommendations
were not implemented. If
other recommendations were
implemented alongside the
funding, it would have led to the
revival of that sector. ”
He listed other challenges that
need to be looked into such as
smuggling, lubricants and others.
Olagunju pointed out that if the
industries have not done well, it
is because the recommendations
were not implemented.
He added, “The real sector
of the Nigerian economy is
experiencing shortages in terms
of the required manpower
that they need to operate their
industries. This programme is to
address two things; there is huge
unemployment in the country
particularly among the youths.”
He also said that analysis of the
situation shows that most of them
are not employable; most of them
have certificates but don’t have
skills required by the real sector of
the economy. So we are trying to
ensure that we beef up the quality
of the output of our vocational
schools. “Prior to the oil boom,
vocational schools operated very
well, they provided manpower for
the economy, but, for the last 20-
40 years, we have seen a decline
in these areas. So the BoI as a
development financial institution,
should key its strategies into the
nation’s development priority and
aspirations and so we are helping
in that regard of tackling youth
“When it comes to factories and
industrial complex, you will realise
that a lot of skilled manpower
are imported from countries like
Phillippine and Indonesia. For
example, the factory put up by
Dangote Group recently, he told
us that he had to import more than
3,000 Indonesian and Philippinos
welders who work in that factory.
These are jobs that would have
been taken up by Nigerians.”
On the vocational skills
competition, Olagunju said, “Five
out of the seven vocational skills,
are construction related because
we need huge manpower to
bridge the 17 million housing
deficit we have in Nigeria. A lot
of industries are coming up and a
lot of manufacturing concerns and
industrial companies are being
constructed all over the country,
we need a lot of manpower.
“The remaining two which are
not construction related, that
is fashion and automotive are
equally important because, there
is huge demand in these areas
too. So, that is why we carefully
selected these sectors, because
we are high stakeholders in the
Nigerian economy, if the economy
does well, we will benefit from it.”

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