+917718880355

news

Pakistan investors show interest to take over languid Nigerian textile firms

YarnsandFibers News Bureau 2014-03-10 16:15:00 – Nigeria

Pakistan investors willing to take over Kaduna Textile Limited (KTL), Notex and Finetex, the Nigerian textile industry which are facing problem as it can product only 10 percent capacity. The potential investors had been told of challenges faced by these textile companies. The physical inspection of the companies has been done and negotiations are on, said Garuba Salawa, director-general, Kaduna Chamber of Commerce, Industry, Mines and Agriculture (KADCCIMA).

The investors will have to map out strategies to deal with issues relating to cotton seedlings, which are essential raw materials used in the industry. They are also expected to pump adequate funds that will be able to raise machinery to world standards.

Nigeria textile industry has suffered innumerable adversity owing to policy somersaults, poor research and development (R&D), lack of competition in the supply of raw materials, smuggling and poor power supply, among others, all this leading to reduction of the players in the industry from over 180 in the 1980s to 34 by 2010.

To secure the sector out of despair, the government established the N100 billion Cotton, Textile and Garment (CTG) Revival Fund in 2006, to tackle the problem associated with funding in the industry. The Fund, managed by the Bank of Industry (BoI), began operation in 2009, and lent to textile manufacturers at about 6 percent interest rate which the industry player often found it difficult to access this fund.

According to Mohammed Badaru Abubakar, president, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), the N100 billion CTG intervention fund has failed to achieve the purpose for which it was established, attributing the situation to lack of consideration of issues such as uncompetitiveness of supply for raw materials, R&D, skills gap as well as shortage of the fund to secure the wobbling textile companies.

Apart from these issues, there are other issues such as unbridled imports, smuggling, inability of government agencies to patronise local manufacturers, poor power supply and absence of black oil in the Northern Nigeria, were among numerous issues that should be properly looked into to make local players compete effectively with importers.

The main raw material is the cotton, then the machineries. If they are not available, the local manufacturer cannot be competitive by world standard. Also, the people lack training to work competitively.

With Pakistan investors showing interest in the languid textile companies as raised rebound expectations for the United Nigeria Textile Limited (UNTL) and other textile industries.

0 0 vote
Article Rating
0 Comments
Inline Feedbacks
View all comments

Market Intelligence

Ask for free sample Report


why us?
21 yrs

experience

Fortune 500

Customer Base

100%

dedicated team

55+

Countries Served Worldwide


newsletter

Register below to receive our newsletters with latest industry trends and news!

WeCreativez WhatsApp Support
Our support team is here to answer your questions via WhatsApp. Ask us anything!
? Hello