FEC Establishes N70bn Textile Revival Fund
 18th MAY 2007

The Federal Executive Council on Wednesday approved the establishment of a N70bn textile revival fund.
The FEC arrived at the decision after studying the recommendations of a presidential committee on the revival of the textile industry in the country.
The council therefore directed the NEXIM Bank to raise the amount through the issuance of Euro bonds for onward lending to textile industry operators at low interest rates.
Other measures expected to boost the industry include the granting of a five-year tax holiday for operators in the industry, as well as the removal of all import levies on textile manufacturing materials.
The council directed the strengthening of anti-smuggling initiatives, as well as severe penalties for convicted smugglers and their accomplices.

The country will also collaborate with its neighbours, particularly Benin Republic and Niger in the anti-smuggling campaign.
Minister of Information and Communications, Mr. Frank Nweke Jnr also told journalists that the Federal Government intend to return the textile industry to its former glory.
In another development, the council approved a contract valued at N58.6bn under the public/private partnership model for the construction of a second Niger Bridge.
The Federal Government, alongside Anambra and Delta state governments, as well as Gito Construction Company Limited, are to partner in the project.

The Federal Government will contribute 20 per cent of the cost, while the two states will contribute 10 per cent each.
Gito, which is to contribute 60 per cent of the cost, will upon completion manage and own the bridge for 30 years to recover its investment.
Another PPP contract approved by the FEC was the N24.3bn Bagana Bridge across the River Benue in Kogi State.

Like in the previous case, the Federal Government will contribute 20 per cent of the cost, while the participating states, Kogi and Nasarawa, contribute 10 per cent each.
The private partner, Messrs Swede Limited, will bear 60 per cent of the cost and subsequently have concessionary ownership of the bridge for 35 years.

Meanwhile the FEC has directed that any inmate that is above 70 years must be released from prisons between now and May 29.

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