FG Urged to Protect Viable Factories During Loan Recovery

Dr. Bello Salman, a member of the Cotton, Textile and Garment Development Forum (CTGDF), called for the Nigerian government to ensure that the recovery of loans does not compromise viable factories and the communities reliant on them. He highlighted that the collapse of a factory disrupts the entire production chain, affecting cotton farmers, transporters, factory workers, suppliers, and textile manufacturers.

While acknowledging the responsibility of the Bank of Industry (BOI) and other public financial institutions to recover public funds, he stressed the need for creditors to assess whether distressed factories can return to profitability. Salman warned that the forced sale of specialized machinery and industrial land could hinder Nigeria's industrial revival.

He proposed a framework for industrial recovery, advocating for independent assessments of distressed factories before liquidation. For viable factories, he recommended debt restructuring, machinery rehabilitation, and partnerships with strategic investors.

He also emphasized the need for stronger support for cotton farmers through improved seeds and guaranteed markets.