Home / Knowledge / News / Textiles / High interest rates affect Nigerian textile sector
High interest rates affect Nigerian textile sector
11
Mar '16
Nigeria's major textile manufacturers have cited the high cost of financing as a major barricade to the several efforts to move the industry forward, according to Nigerian media reports. Annual interest rates on the loans in Nigeria are close to 30 per cent whereas in China rates of less than 6 per cent are sometimes available.

The federal government had set up a N100 billion textile and garment intervention fund, and disbursed funds at rates of six per cent interest about six years ago. However, the impact of fund was modest since beneficiaries tended to refinance their existing loans and spent very little on capital investments.

The Nigerian textile industry is under performing due to the influx of cheaper fabrics from India and China, as about 30 operational textile mills in Nigeria are running at an average of 40 per cent of installed capacity.

Nigeria spent N24.7 billion ($130 million) on textile imports in Q3 2015, according to National Bureau of Statistics (NBS) data. The country is projected to import textiles worth N27.5 billion (around $140 million) by the end of the year 2016.

Meanwhile, the Bank of Industry has blamed the various state governments' for their failure to efficiently implement the national cotton, textile and garment policy in their respective states for the collapse of textile companies across the country. (NA)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Courtesy: Green Initiatives

Apparel/Garments | On 20th Feb 2017

Green Initiatives launches Re:Form to end textile waste

Green Initiatives, a non-government institution, has launched...

Interviews View All

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search