Textile industry can spur Nigeria economic revival
from OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – NIGERIA’S textile, apparel and footwear industry is earmarked to contribute significantly to plans to diversify the economy.
Calls to broaden the economic horizons have been loud in recent months owing to the decline in the international price of oil, a major foreign
currency earner for Nigeria.
“The new administration favours the revival of the country’s textile and footwear industry as it would play a major role in diversifying the economy.
“Not only could it result in revenue diversification and reduce pressure on the import bill, it could also help boost employment,” said FBN Capital, the local financial institution.
The sub-sector accounted for 21 percent of manufacturing gross domestic product in the third quarter of the current year.
However, it contracted by -13 percent year-on-year.
“This is understandable considering the economy as a whole is strained due to the current macro headwinds,” said FBN Capital.
According to a report released by the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), the textile industry performed poorly in the first half of 2014.
This was mainly due to heavy inflow of smuggled textiles, which usually accounts for over 75 percent of Nigeria’s textile market.
Annual cotton production was estimated at 533 metric tonnes (mt), with Zamfara and Katsina accounting for 25 percent and 22 percent of total
There are suggestions over 30 operational textile mills are operational while 80 are moribund.
Meanwhile, Aba, located in south-east Nigeria, has received global recognition with investors from Brazil indicating interest in collaborating with the state government to provide modern machineries aimed at boosting shoe production.
Also, the Nigerian Investment Promotion Commission (NIPC) recently announced it would work closely with National Cotton, Textile and Garment (CTG) policy committee to resuscitate the country’s textiles industry.
The CBN has indicated interest in lending support to this industry through the establishment of an intervention fund at a single digit interest rate.
– CAJ News
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