Relief as FG, BoI advance moves to resuscitate textile industry
Respite could soon come to Nigeria’s wobbly textile industry as the Federal Ministry of Industry, Trade and Investment and the Bank of Industry (BoI) take proactive steps to resuscitate the sector.
Aisha Abubakar, minister of state for industry, trade and investment, last week, embarked on tours of Spintex Mills Nigeria Limited, Lucky Fibres Plc, and Nichemtex Plc, three textile firms in Ikorodu, Lagos State.
The essence of the tour was to see firsthand the true state of the surviving textile firms and then map out strategies to deal with forces that have held the industry by the jugular over the last two and a half decades.
So far, the BoI has provided and continues to provide funds needed to spike the industry through the Cotton, Textile and Garment (CTG) Fund.
Industry players confirmed last week that had it not been this support provided by the BoI, the remaining textile firms could have gone the way of others.
Even the minister acknowledged the support of the development bank towards the textile industry, thanking its management for working in line with the country’s dream of achieving economic diversification through the real sector.
Spintex Mills
The factory machines at Spintex Mills buzzed during the visit. Ordinarily, one would have believed the company was operating at full capacity, but checks showed the textile firm was not, and could have been churning out a lot more materials for the Nigerian and African consumers had the perennial problems of smuggling, high gas prices, foreign exchange crisis and low domestic patronage not been there.
Murali Menon, country head at Spintex, told the minister that the firm was as competitive as anyone else in the world, saying that it was bringing in foreign exchange into the country through export of cotton.
“Exporting cotton out of Nigeria is a big alternative and is also viable, especially now,” Menon said.
He added that gas prices were still charged in dollars, lamenting that this was having a negative impact on the firm’s top-and bottom-lines. He further said smuggling was a major challenge for the textile industry, urging the federal government to beam its searchlight on retail shops where smuggled materials were often on sale.
In her submission, Minister Aisha Abubakar said the government was desirous of bringing back the glory of the industry, asking the firm to ensure it put the whole facts on the table to enable the government seek holistic solution to the challenges bedevilling the sector.
Lucky Fibres
At Lucky Fibres, Kemi Ajibade, head of human resources, told the minister that foreign exchange scarcity, high gas prices, low patronage and smuggling were dealing big blows on the firm. Ajibade urged the minister to help ensure that smuggling was reduced to the barest minimum to help the industry.
On her part, the minister said the issues affecting the sector would be given a holistic approach.
Nichemtex
At Nichemtex plc, Ping-Man Chun, CEO, told the minister that the company used to employ about 17,000 workers in the 1980s but now has 4,500, attributing the problem to unbridled importation of substandard textile products and smuggling.
“We want to see the market for the locally manufactured goods. Last year, 90 to 95 percent of locally manufactured goods were smuggled, but we want to see a change. Just reduce smuggling by 20-30 percent and we will be good,” he said.
He further said that electricity tariff was quite expensive in the country, stressing that electricity charges were higher in the north than the south. He also called for the reinstatement of the Export Expansion Grant (EEG) to help spike export of cotton and textiles while bringing in foreign exchange.
ODINAKA ANUDU