IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 18 Dec 2009 | Removal date: open ended

Interest payment subsidy

The federal government of Nigeria has approved a 10 billion naira fund to assist textile and cotton manufacturers in the country. The fund is part of a 100 billion naira bond-funded cotton, textiles and garment industries revival scheme launched on 18 December 2009. Beneficiaries of the fund include farmers producing cotton and other fibre products, spinning and textiles millers and ginnery operators. The fund is to be disbursed as loans with a 6% interest rate and other conditionalities. The Bank of Industry is charged with disbursing and managing the fund. 
 
The interest rate charged on these loans is a fraction of the rate charged on commercial loans (reports in 2009 referred to commercial loan rates of 20-32 percent.) These loans will either revive moribund plants or discourage exit by existing plants, both of which raise supply and depress prices, to the disadvantage of foreign suppliers (whether they own facilities in Nigeria or import from abroad.)
 
 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

262 Man-made textile staple fibres processed for spinning
5506 Synthetic staple fibres, carded, combed or otherwise processed for spinning.
550630 Acrylic or modacrylic
266 Woven fabrics (except special fabrics) of cotton
5208 Woven fabrics of cotton, containing 85 % or more by weight of cotton, weighing not more than 200 g/m2.
520811 Plain weave, weighing not more than 100 g/m2
520812 Plain weave, weighing more than 100 g/m2
267 Woven fabrics of man-made filaments & staple fibres
5407 Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of heading 54.04.
540720 Woven fabrics obtained from strip or the like
271 Made-up textile articles
6302 Bed linen, table linen, toilet linen and kitchen linen.
630239 Of other textile materials
6304 Other furnishing articles, excluding those of heading 94.04.
630491 Knitted or crocheted
273 Twine, cordage, ropes & cables; articles thereof
5608 Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials.
560819 Other
279 Textiles n.e.c.
5603 Nonwovens, whether or not impregnated, coated, covered or laminated.
560392 Weighing more than 25 g/m² but not more than 70 g/m²
5806 Narrow woven fabrics, other than goods of heading 58.07; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs).
580632 Of manmade fibres
5901 Textile fabrics coated with gum or amylaceous substances, of a kind used for the outer covers of books or the like; tracing cloth; prepared painting canvas; buckram and similar stiffened textile fabrics of a kind used for hat foundations.
590190 Other
5903 Textile fabrics impregnated, coated, covered or laminated with plastics, other than those of heading 59.02.
590310 With poly(vinyl chloride)
590390 Other
282 Wearing apparel, except fur apparel
4203 Articles of apparel and clothing accessories, of leather or of composition leather.
420330 Belts and bandoliers
355 Man-made fibres
5402 Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex.
540219 Other
369 Other plastics products
3926 Other articles of plastics and articles of other materials of headings 39.01 to 39.14.
392610 Office or school supplies
392690 Other
6506 Other headgear, whether or not lined or trimmed.
650610 Safety headgear
371 Glass & glass products
7019 Glass fibres (including glass wool) and articles thereof (for example, yarn, woven fabrics).
701990 Other

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