Home / Knowledge / News / Textiles / Govt loses huge revenue to smuggling of textiles
Govt loses huge revenue to smuggling of textiles
13
Feb '10
Nigerian Textile Manufacturers Association (NTMA) revealed that, every year, Nigeria is suffering a loss of around $325 million attributable to evasion of customs duty and Value Added Tax by smugglers of fabric materials.

NTMA Chairman, Mr. Abiodun Ogunkoya at a news conference in Lagos, extended an indication to the concern that the smugglers are not only propounding a threat for the industry but have also disowned payment of considerable revenues to the government.

According to Ogunkoya, of the total $1.4 billion worth textile materials sourced by the country's market every year, almost 85 percent is smuggled. Mainly printed fabrics with fake and counterfeited materials are smuggled.

Fake trademarks of Nigerian manufacturers along with counterfeited SON Logo embossed on the labels, have been found on wax print fabrics made in China, he said.

He opined that to tackle the nation's textile smuggling issue and to safeguard the local industry, Federal government requires devising an effective system.

However, he welcomed the Federal government's move of distributing N100 billion for revitalization of textile industry and stated that, by end of this January N20 billion has already been released to the Bank of Industry (BOI).

The Chairman elucidated that the entire sum of N100 billion allotted for the textile sector would be discharged to BOI before end of the current year and emphasized that the fund will help the textile manufacturers with regards to modernizing.

The sector is still confronted with infrastructural problems like meager power supply and bad road conditions, which will bring to naught the benefits of the fund if proper steps are not initiated to tackle the issues, he said.

As compared to India, Pakistan, China and Turkey, in Nigeria the cost for making power available is much higher at 20cents/kwh, he added.

Addressing the press conference, Director General of Nigerian Textile Manufacturers Association,Chief Jaiyeola Olarenwaju, stated that majority of the textile manufacturers are upset over the rising costs of petroleum products in the country.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Giorgio Mantovani
Corman S.p.A

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

Kevin Nelson
TissueGen

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

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Ritu Kumar
Label Ritu Kumar

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

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

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search