By Rukayat Moisemhe
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.
Historically, Nigeria boasted a thriving textile sector, with numerous mills spread nationwide.
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 overshadowed by imported alternatives.
Mrs Lilian Ekpedeme, Founder, 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 locally manufactured textiles and prints such as brocade, Adire, and others can be used 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 rebirth of the industry and revitalisation, the Federal Government, through the Bank of Industry (BoI), provided an N100 billion loan at a four—to six per cent interest rate to the sector.
According to Dr Doris Uzoka-Anite, Minister of Industry, Trade and Investment, this is in addition to the 3.5 billion dollar investment in the textile sector for the performance optimisation of the garments and apparel industry.
However, Mr Ilyasu Saleh, Chairman of the Textile, Garments, and Leather Sectoral Group at the Manufacturing Association of Nigeria (MAN), said that despite the Bank of Industry (BOI) disbursing loans 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 Nigerians’ preference for imported goods 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 domestic and global competitiveness.
Saleh recommended that economic reforms 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. This would address policy inconsistencies and provide investors with more certainty.
Others, according to him, include restructuring BoI’s loan repayments 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 of MAN, Mr Segun Ajayi-Kadir, disclosed that the association’s textile, apparel, and footwear sectoral group showed some unfavourable economic indices in the first quarter of 2024.
He noted that the sector recorded a -15.83 percent capacity utilisation, -15.16 percent volume of production, -6.28 percent investment, –9.43 percent employment, and -10.26 percent sales volume.
He added that reports from players in the textile sector revealed a 15.32 percent increase in production and distribution costs and a 15.76 percent 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 percent from the 51.8 percent recorded in the fourth quarter of 2023, which indicates resilience.
To support his arguments, Ajayi-Kadir recommended setting Key Performance Indicators for Nigerian diplomats and High Commissions. These indicators would aim to double the country’s export value through effective marketing of Made-in-Nigeria goods.
He also suggested directing the Nigeria Customs Service (NCS) to upload approved items of Chapter 99 on its platform and mobilising 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)
