Market access

Textile manufacturers demand market access

Nigerian textile manufacturers have denounced what they described as “the weak competitive state of the textile industry”, which they say is dying and requires urgent interventions from the federal government..

They lamented that despite efforts to revive the textile industry, the sector still faces many challenges, including the high cost of production which has made its product uncompetitive; snuggle up unrestrained and counterfeit textiles made in Nigeria, among others.

Speaking to reporters in Lagos on Thursday, the Nigerian Textile Manufacturers Association (NTMA) and the Textile Workers Union lamented that the association which would normally celebrate its 65th anniversary this year with celebrations unfortunately does not. because the industry is about to collapse.

NTMA President Folorunsho Daniyan has denounced bad patronage despite Nigerian Federal Government Executive Order 003 of 2017.

He listed other challenges facing the industry including: inadequate and expensive electricity supply, poor infrastructure, high tax and interest rates, high cost of diesel and LPFO as well as the depreciation of the value of the naira.

According to Daniyan, the main factors responsible for the decline in export capacity are the loss of preferential access to EU and US markets; inconsistent implementation of the Export Development Grant (EEG) policy, in particular a continuing backlog of EEG applications; and inconsistencies in the implementation of the ECOWAS Trade Liberalization Scheme (ETLS).

According to him, the state of the industry, especially in the North, is aggravated by increased insecurity which drives customers away from the few industries in the region and also discourages new investment in the region.

The Association further frowned upon the Nigeria Customs Service for not effectively combating smuggling as cheap smuggled textile products largely from China and other Asian countries continue to dominate the local market with little or no access to locally produced textiles.