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Nigeria Misses top fabric producers list

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By Abiodun Okunloye

FG N100 billion funding to revive the textile sector has underperformed.

In spite of the N100 billion in funding from the federal government to support the country’s textile sector, Nigeria is still not included in the list of the “Best Fabrics Producing Countries”. Morocco is the only African nation on the list of the top 12 countries that exported far more textile materials in 2021, with exported garment materials totaling $297 million. Nigeria is absent from the list owing to difficulties the nation’s textile sector is confronted with. According to Grand View Market Research’s findings, the federal government’s N100 billion investment through the Cotton Textile Garment Intervention Fund to revitalize Nigeria’s textile industry has underperformed.

Moreover, the textile industry was estimated to be worth $993 billion globally in 2021 and increase to $1 trillion in 2022, according to the report. The textile market is among the largest in the world and includes a wide variety of products, including clothing, fabric, cotton, yarn, and other materials. According to the research company, the business will expand at a compound annual growth rate (CAGR) of 4% from this year until 2030, when it is expected to be worth an estimated $1.4 trillion. The cotton market is the largest submarket of the textile industry in terms of breakdown by product.

Nigeria’s textile sector keeps experiencing a decrease over the year.

The research company revealed that in 2021, cotton contributed a significant 39% of the market’s overall revenue, with China, India, and America being the world’s leading cotton producers. In addition to cotton, wool had a significant role in the sector, accounting for 13% of the market and predominantly used in winter items like jackets and blankets. Regionally, Asia Pacific does have the largest textile sector, contributing close to 50% of total revenue. The United States produces a sizable number of cotton and textiles, as well as imports a significant amount of products, making it the leading textile producing nation in North America.

In 1985, there were about 175 textile mills in Nigeria, but as of the end of 2022, the nation can only take pride in 20 textile mills. When it comes to employment opportunities, the industry’s productivity decreased from 137,000 job positions in 1996 to 24,000 jobs in 2008. As of right now, the sector only contributes less than 20,000 employees to the economy. Stakeholders had recommended the government to create the conditions necessary for the recovery of the manufacturing and textile industries.

Current government needs to create a business enabling environment.

Mr. Folorunsho Daniyan, President of the Nigerian Textile Manufacturers Association (NTMA), made the observation that despite the efforts that have been made to revitalize the textile industry, the sector is still plagued with a number of issues. These challenges included high production costs, which have made its products uncompetitive; low patronage in with the Federal Government Executive Order 003 of 2017; unrestricted smuggling and falsification of Made-in-Nigeria textiles; insufficient and expensive electricity supply, inadequate infrastructure, the high diesel costs and LPFO as well as high taxation, interest rates and the devaluation of the naira.

Furthermore, he explained that the condition of the sector at the moment, especially in the North, is made worse by the increased incidence of insecurity that is scaring away clients from the limited enterprises that are already present there and also demotivating new investments in the region. They emphasize that the government needs to take additional steps to create an environment conducive to the recovery of the textile industry in the country and industrial activities in general.

Many unconsidered factors led to the sector’s failure – Adeleke.

According to Mr. Adebayo Adeleke, managing director of Lancelot Ventures Limited, the N100 billion FG intervention failed because the problems with raw materials and equipment were not taken into account while setting up the program. He emphasized that in order to secure the recovery of the textile sector, a variety of issues ought to have been put into place. These concerns include ensuring that the machinery is operating efficiently and effectively to today’s standards and that they can make the firms compete productively.

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NTMA: Website

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