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 29th Apr 2017

Textile sector may have uniform GST rate: Irani

The textile sector could have a uniform Goods and Services Tax (GST)...

Textiles | On 30th Apr 2017

Government revamping tech mission on cotton

Indian Government is working to revamp the technology mission on...

Apparel/Garments | On 30th Apr 2017

Columbia Sportswear records Q1 net sales of $543.8 mn

Columbia Sportswear Company has announced record net sales of $543.8...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> 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

news category


Related Categories:
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X