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Textile industry is worth N4.7billion – Minister

By on July 8, 2016

Even in its moribund state, the Nigeria textile industry is worth N4.7billion, this is as indications emerged that the federal government has started the process of prioritising the revamp of the sector by encouraging local investors in the industry and patronage of locally made fabrics.

The Minister of State for Industry, Trade and Investment, Mrs. Aisha Abubakar, who disclosed this at the inaugural edition of the Africa Fashion Week Textile and Garment manufacturing conference in Lagos, also stated that the current administration has concluded to resuscitate the cotton and textile industry. The theme of the conference is ‘Making Nigeria the Fashion Hub of Africa,’

Other experts who spoke at the event were unanimous in their opinion that improved access to finance, creation of manufacturing hubs, as well as constant electricity supply would unlock the growth potential of the Cotton, Textile and Garment (CTG) sector.

Chairman of the conference and President, Nigerian-British Chamber of Commerce (NBBC), Mr. Dapo Adelegan, had earlier disclosed that the textile industry is the 2nd largest industry in any nation. Proclaiming that the future of the industry in Nigeria is bright, he urged that the conference should be used as a platform to encourage investment in the CTG sector which will ultimately, boost the GDP of the country.

Speaking further on the plan of the Buhari’s administration to rebuild the industry, Abubakar, said government is fully committed to reviving the CTG sector of the manufacturing industry and would also support all parts of its value chain of which fashion is one.

This process, she said, is in line with the core economic mandate of President Muhammadu Buhari’s administration to create jobs.

The minister outlined some of the steps taken by the federal government in reviving the CTG sector such as the creation of an enabling business environment, the repositioning of government agencies like Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) and Bank of Industry (BOI), appropriation of funds to the CTG industry and resolution of the issue of multiple taxation.

She said: “Government is creating an enabling environment by improving the ease of doing business for which a presidential committee driven by the private sector would be set up. SMEDAN industrial training fund and Bank of Industry are being repositioned to address the MSMES. They are core to the implementation of the National Enterprise Development Programme (NEDEP) which is aimed at generating about five million jobs.

“Funds are being set aside to refinance the CTG sector and address legacy problems including power. Tax incentives and changes in regulations do affect employment. Proposals are being discussed on how the issue of multiple tax can be addressed.”

The minister also announced that the government would soon create Information and Communications Technology (ICT) and garment production hubs and urged members of the fashion industry to take advantage of the project to develop the value chain of the sector.

“Government is also looking into setting up ICT and garment production hubs which will offer opportunities across the value chain. I would like to implore the fashion industry to look at these areas in the value chain especially currently underdeveloped and look for collaborative ways of moving this forward. This will bring in more people into the industry which has the potential to generate employment,” Abubakar remarked.

In his keynote address, the Lagos State Commissioner of Finance, Dr. Mustapha Akinkunmi, said the importation of foreign fabrics and clothing which is as a result of Nigerians preference for foreign goods is hampering the growth and development of the textile industry and the fashion value chain. He said this is regrettable in spite of superiority of some local and African apparel such as Adire, Kampala and Ankara to the foreign ones that are being dumped in the country.

He urged young Nigerians in the fashion industry to take advantage of vocational training, micro-financing and employment trust fund initiatives of the state government to create innovative designs and apparels using local fabrics. While decrying the dearth of fashion institutes in the country, he announced the intent of the Lagos State Government to establish centres of excellence for fashion design training at the state owned university and polytechnic.

Speaking on the need for the conference, Founder, Africa Fashion week Nigeria, Ms. Ronke Ademiluyi said; “After six years of creating opportunities for Nigerian designers to excel on the global stage, we were compelled to commit resources to the development of the local fashion industry value chain. Without a thriving local value chain, we will be unable to translate the runway success of our designers and fashion entrepreneurs to job creation and shared prosperity for our nation. Our commitment is to improved access to finance for designers, capacity development programmes and establishment of manufacturing hubs.”

The Africa Fashion Week Textile and Manufacturing conference is the primary activity of the first day of Africa Fashion Week Nigeria. Organised by AFWL Africa Concepts, the conference aims to redefine textile and garment production processes in Nigeria.

 

[ThisDay]