The textile industry stands out as a potential catalyst for economic resurgence. Once vibrant, the industry now languishes, facing stiff competition from imported fabrics and struggling to regain its former glory.
By Rukayat Moisemhe
Historically, Nigeria boasted a thriving textile sector, with numerous mills spread across the country.
However, today, many of these establishments are mere shadows of their former selves, grappling with economic downturns and infrastructural deficiencies.
The decline of these industries has had far-reaching consequences, including mass unemployment and a heavy reliance on imported textiles.
The consequences of this decline are palpable. Once cherished fabrics like Abada Aba, Isiagwu, Adire, and Aso-Oke are being overshadowed by imported alternatives.
Mrs Lilian Ekpedeme, Founder, of Colours of El, a fashion outfit, told NAN that the majority of her customers’ preference favoured indigenous fabrics.
Ekpedeme noted that with a bold fashion statement by the entertainment industry, the fusion of Ankara and Adire, among others, notable prints are finding their way back into the Nigerian market.
According to her, Nigerian brides will promote locally made fabrics to showcase their tribe, culture and beauty on their wedding day if given the chance, to become Nigeria’s cultural ambassadors with local fabrics.
Mr Funsho Bailey, a home design enthusiast, said the adoption of locally manufactured textiles and prints such as brocade, Adire, and others can be utilised for curtains, window blind patterns, and other household decorations depending on users’ preferences.
However, to stem the tide, as enumerated in the Bola Tinubu administration’s ‘Renewed Hope Agenda’ for a re-birth of the industry and revitalisation, the Federal Government through the Bank of Industry (BoI) provided a N100 billion loan at four to six per cent interest rate to at the sector.
This is in addition to the 3.5 billion dollar investment to the textile sector for the performance optimisation of the garments and apparel industry, according to Dr Doris Uzoka-Anite, Minister of Industry, Trade and Investment.
However, Mr Ilyasu Saleh, Chairman of the Textile, Garments and Leather Sectoral Group at the Manufacturing Association of Nigeria (MAN), said that in spite of the disbursement of loans by the Bank of Industry (BOI) to various stakeholders in the sector, numerous fiscal obstacles have hindered the industry’s recovery.
Saleh noted that factors such as deteriorating infrastructure, insufficient energy supply, unpredictable fiscal and trade policies, reliance on imports, procurement difficulties, counterfeiting, lack of technical expertise, and a preference for imported goods by Nigerians have contributed to the sector’s decline.
Saleh also said that the non-compliance of government agencies with Executive Order 003, which mandates the prioritisation of locally made goods and services in procurements, had further hampered the industry’s growth prospects.
He emphasised the need for ongoing economic reforms to address Nigeria’s unique economic challenges, which had affected the textile sector’s struggles and undermined its competitiveness both domestically and globally.
Saleh recommended that economic reforms should be implemented gradually and carefully monitored to prevent adverse effects on industrialisation.
To revitalise the textile and garment industry, Saleh proposed several measures, including the full enforcement of Executive Order 003 to reduce excess inventory, and addressing policy inconsistencies to provide investors with more certainty.
Others, according to him, include the restructuring loan repayments by BoI for a more sustainable refund system, and revitalising the Ajaokuta steel complex to promote local manufacturing and reduce reliance on imported machinery and equipment.
The Director-General, MAN, Mr Segun Ajayi-Kadir, disclosed that the textile, apparel and footwear sectoral group of the association in the first quarter of 2024 showed some unfavourable economic indices.
He noted that the sector recorded a -15.83 per cent capacity utilisation, -15.16 per cent in production volume, -6.28 per cent in investment, – 9.43 per cent in employment and -10.26 in sales volume.
He added that reports from players in the textile sector revealed a 15.32 per cent increase in production and distribution costs and a 15.76 per cent increase in shipment costs.
Ajayi-Kadir, however, stated that general manufacturing performance was beginning to gain moderate traction evidenced by the improvement in aggregate index score to 53.5 per cent from the 51.8 per cent recorded in the fourth quarter of 2023, indicating resilience.
To bring home his arguments, Ajayi-Kadir recommended setting Key Performance Indicators for Nigerian diplomats and High Commissions aimed at doubling the country’s export value through effective marketing of Made-in-Nigeria goods.
He also suggested a directive to the Nigeria Customs Service (NCS) to upload approved items of Chapter 99 on its platform and mobilise its services and other agencies, among other recommendations.
Others include the enactment of a law for the establishment of the Nigeria Office for Trade Development, review of foreign exchange rate for import duty assessment for production inputs and implementation of the recommendations of the Presidential Fiscal Policy and Tax Reforms Committee.
NAN Features
