Stakeholders Express Worries Over Declining Fortunes of Textile Sector

Stakeholders have expressed concerns over the deteriorating state of the nation’s textile mill sector and garment industry, while stressing that government needs to take proactive steps to prioritise the protection of local investors to improve the operating environment for manufacturers and economic operators to thrive.

Obviously, the textile Industry which was once a significant contributor to the manufacturing sector, now finds itself in a comatose state. Its decline is especially troubling given its potential to provide employment for both skilled and unskilled labor, generate export earnings, and attract foreign direct investment, thereby reducing poverty.

Policy Analysts and economic watchers have also lamented over governments decision and efforts to revive the sector through fiscal policies and monetary interventions which have not yielded the expected results.

Observers are increasingly skeptical about the fate of the funds allocated for the sector’s revival, questioning whether these resources were mismanaged or never properly accessed.

Historically, the textile industry was the largest employer of labor after the public sector, playing a major role in the economy.

However, it has ceased to be a significant contributor to foreign exchange earnings and employment in Nigeria due to several challenges.

Addressing the state of textile Industry, the president of the Nigeria Labour Congress (NLC), Joe Ajaero emphasised at a conference organised by the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN) that no nation can afford to neglect its textile sector due to its extensive value chain and potential for job creation.

He recalled a time when the textile sector employed millions of Nigerians across over 200 companies, utilising local cotton to produce various textile products for domestic use and export. Over time, however, the sector has degenerated.

We have witnessed publicized efforts by past governments to resuscitate the sector, but it seems the louder the noise about revival, the more the sector declines, Ajaero said. He pointed out the N100 billion and the recent N50 billion Textile Revival Implementation Committee (TRIC) funds, questioning whether these resources were effectively utilized.

He said, despite promises by the minister of Industry, Trade and Investment, Doris Uzoka-Anite that the Federal Government is developing a resurgence plan for the cotton, textile, and apparel industry in collaboration with development partners and the private sector, tangible progress remains elusive.

While reviewing the ministry’s activities over the past year, Uzoka-Anite noted that about $3.5 billion in investments were secured to rejuvenate the moribund sector. Yet, the sector remains stagnant.

Also speaking, immediate past president of NUTGTWN, John Adaji stressed that, reviving the sector requires deliberate government efforts. He cited South Africa’s successful ‘Buy South Africa’ campaign, which revived its textile sector and created jobs. Adaji believes that full implementation of Executive Order 003 could significantly boost Nigeria’s textile industry.

Chairman of the Textile Group of the Manufacturers Association of Nigeria (MAN), Ilyasu Saleh identified several issues plaguing the sector. He noted that, a large percentage of textiles sold in the country are smuggled and imported, resulting in a loss of potential Value Added Tax (VAT) revenue.

The suspension of Export Expansion Grant (EEG) claims has further compounded the problems, limiting operators’ capacity to export and improve production.

Saleh criticised the lack of compliance with Executive Order 003 and highlighted the preference for imported goods over local products, saying, ‘operators are selling below production costs, which is unsustainable.’

CEO of FAE Limited, Layo Bakare-Okeowo appealed to the government to protect the local textile industry from the influx of imported materials.

She emphasised the need for fair gas pricing for manufacturers and highlighted the potential for exporting local designs like batik and adire. Bakare-Okeowo also stressed the importance of security for farmers, as the major raw material for the sector, cotton, is endangered by terrorism.

Former chairman of MAN’s Apapa branch, Frank Onyebu criticised bad policies and lack of protection that have frustrated the garment industry over the years, believing that, with the right policies and proper implementation, the sector can be revived.

Chairman of the SMEs Group of the Lagos Chamber of Commerce and Industry (LCCI), Daniel Dickson-Okezie pointed to poor local patronage and lack of transparency as major hindrances to the industry’s growth, calling for a high level of patriotism and government-led encouragement for Nigerians to buy local products.

Dickson-Okezie also highlighted multiple taxation, epileptic power supply, and insecurity as obstacles to the ease of doing business in the textile industry.

In summary, stakeholders urge the government to fully implement Executive Order 003, tackle insecurity, support local cotton production, and encourage patronage of locally made products to revive the textile sector. They believe that with concerted efforts and the right policies, the industry can regain its former glory and contribute significantly to the nation’s economy.