How to revive Nigeria's textile sector by experts
By Babatola Adeyemi
STAKEHOLDERS who gathered at the three-day International Conference on the Textile Industry recently in Lagos were unanimous that a multi-pronged approach was required to tackle the constraints of the comatose textile sector.
Specifically, they said that the federal government, the sector operators themselves and employees have necessary roles to play at ensuring reversal of fortunes. But governmentÕs role, they emphasized, is cardinal.
According to International Textile Expert and visiting professor to several universities in the `United States of America, professor Walter Vieira, three major issues- as far as government is concerned- are: the political will and readiness for a change, appropriate and stable policies and provision of infrastructure.
Vieira said government must not only appreciate the overall implications of the socio-economic losses presently incurred by the country simply because the textile sector is dying, but must be ready and determined to change the situation.
In his words:Ó Nigeria has waited too long. Opportunities do not wait for strategies and strategists. They must be grabbed. We must all want to succeed. And passion is required. The time is now to change direction. And government has a key role to play hereÓ.
He canvassed appropriate policies as advised by stakeholders to revive the sector and cautioned against policy inconsistency.
ÒIt is common for Afro-Asian countries to change policies. They lack sacredness, stability in policy. The question is: why not?Ó
The Don also tasked government on the provision of infrastructure. According to him, government should learn from China which would invite investors to her country, provide land for entrepreneurs and provide other things like tarred roads, water etc, such that the investor is simply coming with his expertise and equipment.
Government, Vieira also stated, should also encourage innovation in the textile sector. According to him, innovation could give a new future to NigeriaÕs textile sector. Buttressing this, he said Nigeria should by now be using organic cotton.
ÒOrganic cotton is eco-friendly and of a higher quality than the cotton presently used in NigeriaÓ, he said
Speaking on a similar note, the Chairman of Bombay Textile Research Institute, Mumbai, India, Professor Shri Prem Malik, said government must give the textile sector priority status, such that it would be de-linked from others for a deserved priority attention.
Having done that, government should then declare it a zero- duty payment industry at least for the next ten years, he advised.
In addition, he urged government to tackle the problem of smuggling with the seriousness it deserves.
The don Stated:Ó Smuggling can be stopped in 24 hours if government really wants to stop it. ItÕs a systematic problem that should be taken very serious. And one way of doing this is by a government decreeÓ.
To Abia state commissioner for Commerce and Industry, Chief Victor Ubani, the single greatest challenge deserving urgent attention of government is the provision of power supply. The next, he added, is good roads. ÒIf government can ensure regular power supply in this country, it is not only the textile sector that will be revived but the whole industrial sector and indeed the whole economyÓ, he emphasized.
Ubani lamented the closure of Aba textile factory and said the state government would readily support investors who would like to revive it.
He stated:Ó It is a thing of great regret that Aba textile factory, which employed thousands of Nigerians, is no more functioning. We appeal to investors to come to our rescue. Even for a new factory, we are ready to provide necessary support to investors. We would provide the required landÓ.
To the representative of Gherzi Textile Organization, Switzerland, Mr. N. Sodhi. NigeriaÕs textile sector should enjoy Value Added Tax (VAT) exemption for five years. In addition, interest rate should be subsidized for the benefit of the operators.
The proposed textile sector development fund, he added, should also be implemented, just as operators should enjoy some relief in the importation of raw materials like dyes, chemicals etc.
The textile expert also faulted the prevailing prohibition of importation of textiles. According to him:Ó Its time to do away with import prohibition because it has not provided the intended benefits. The option is to place a levy on importsÓ.
The Executive Secretary, Nigerian Textile Manufacturers Association, Mr. Jaiyeola Olarewaju, said an obvious task for the government remained the fulfillment of a promise made since 2006, namely the N100 billion textile and cotton development fund (formerly N70 billion textile revival fund). In pursuit of that promise, he said some sector operators were given symbolic cheques on May 24, 2007, and till date the cheques remained symbolic. He also cautioned government against policy inconsistency, even as he regretted that government owed some textile firms.
ÒTill now, a textile firm is still owed N70 million by a government agencyÓ, Olarewaju disclosed.
The General secretary, National Union of Textile and Garment Workers of Nigeria, Mr. Issa Aremu, urged government to be sincere in its attitude to the travails of sector operators.
ÒIf government could easily bail out the banking sector with over N400 billion naira, we need to ask questions on how sincere government is in addressing the problems of the textile sectorÓ, Aremu said.
The Managing Director of Banquaires Facilities Limited, whose company organized the conference, Mr. Felix adeduro, urged government to have a textile agency
. ÒNigeria needs a textile agency that would among others ensure a textile policy and other strategies to revive the sector and provide employment to thousands of NigeriansÓ, he stressed.
Interestingly, the President Manufacturers Association of Nigeria (MAN), Alhaji Bashir Borodo, shifted attention to manufacturers.
He was frank:Ó Yes, we have problems of infrastructure and much more, but we also need to wake up .we must arm ourselves more and more as Malik has said. We must embrace innovation and do a lot of marketing. We must challenge imports through competitive products and market creation. The arrogance of simply being a manufacturer must stopÓ.
