Hopes raised Turkey can save Nigeria textile industry

ng textile industryFrom OKORO CHINEDU in Lagos, Nigeria
LAGOS, (CAJ News) – A Nigeria financial think-tank believes relations between Nigeria and Turkey could help revive the former’s textile and apparel industry.

First Bank of Nigeria (FBN) Capital noted the industry was currently underperforming amid the influx of cheaper fabrics from China and India.

It has been reported there are about 30 operational textile mills which are running at an average of 40 percent of installed capacity.

Most manufacturers within the industry have cited the high cost of financing as a major hindrance.

The observation was made to coincide with Turkey President, Tayyip Erdogan, led a delegation from his country on a state visit to Nigeria.

“We understand that government officials from Turkey are currently visiting Nigeria. Turkey is an important cotton producer and has a well-developed domestic textiles industry,” FBN Capital said on Thursday.

The textile industry is presently struggling but measures have been put in place to revive it.

Textiles feature in the Central Bank of Nigeria’s circular of June 2015, specifying 41 import items for which foreign currency from official sources is not available.

Government placed a ban on textile importation in 2010 in order to encourage domestic production.

“However, this led to increased smuggling,” FBN Capital noted.

Smuggled imported textiles are said to account for over 85 percent of fabrics sold locally.

According to National Bureau of Statistics, Nigeria spent N24,7 billion (US$130 million) on textile imports in the third quarter of last year, representing a 17 percent decline.

CAJ News

Short URL: http://cajnewsafrica.com/?p=11808

Posted by on Mar 3 2016. Filed under Africa & World, Featured, Finance, National, News, Regional. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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