Nigerian FG urged to formulate and embark textile industry development policy

The National Association of Microfinance Banks (NAMB) urged the Federal government of Nigeria to formulate and embark on protectionist policy that will curb large scale textile dumping and smuggling into the countries and enhance the development and sustained growth of the nation’s textile industry. It could be a major solution to the threats the Nigerian textile industry is presently facing.

The NAMB President, Mr Valentine Whensu, said that the increasing activities of textile smugglers were scaring numerous investors and mortgaging national effort toward expanding employment opportunities.

Although the sub-sector has received N100 billion from the Bank of Industry (BoI) through the Growth Enhancement Support (GES) scheme on cotton, textile and garments funds, those who took the loans got their fingers burnt. As it was discovered that over 80 percent of the market has been taken over by cheap imports from Asian countries.

According to Whensu, the influx of foreign textiles into the country made locally produced textiles less competitive, as they are often costlier than the imported or smuggled ones. The current problem in the nation’s textile industry was that other companies yet to access the loan chose to avoid it.

Most of them are afraid that they may not be able to repay the loan considering the prevailing unfriendly operating environment particularly with regards to lack of infrastructure.

The country could boast of about 175 textile factories in the 1980s, following the lifting of the ban on the importation of foreign fabrics in 1997 the number shrank to 124 in 1994 and 70 in 2002.