Interviews
Provide rebate on gas prices - Textile sector
13 Feb '10
2 min read
The Nigerian Textile Manufacturers Association (NTMA) demanded the implementation of 50 percent rebate on the prices of gas, which the government had promised last year, in order to cut down the production cost. Mr. Jaiyeola Olanrewaju, Director-General, NTMA made this demand in a press conference to inform the situation of textile industry in Lagos.
In order to offer more competence to domestically produced products, some concession should be offered by the government to the manufacturers who use petroleum products like automotive gas oil (diesel), gas, and low pour fuel oil, as inputs, he stated.
Along with the rebate on gas prices, the association also called on the government to implement five-year tax rebate and 5 to 10 percent reduction of the customs duty on imported raw materials, as per its last years' promise.
Only offering funds cannot be the only measure to tackle industry issues, as increasing rate of smuggling and counterfeiting of products are the major stumbling blocks of the textile industry, lamented Mr. Olanrewaju.
Around 85 percent of the textile items available in the local market are smuggled and fake items. China-made wax print fabrics are counterfeited with trade marks of Nigerian manufacturers. Uneven power supply is another hurdle for the industry.
Cost of power supplied to the manufacturers in Nigeria is relatively higher than that of other countries, according to the United Nations Industrial Development Organization study undertaken in the year 2008, he informed.
In order to offer more competence to domestically produced products, some concession should be offered by the government to the manufacturers who use petroleum products like automotive gas oil (diesel), gas, and low pour fuel oil, as inputs, he stated.
Along with the rebate on gas prices, the association also called on the government to implement five-year tax rebate and 5 to 10 percent reduction of the customs duty on imported raw materials, as per its last years' promise.
Only offering funds cannot be the only measure to tackle industry issues, as increasing rate of smuggling and counterfeiting of products are the major stumbling blocks of the textile industry, lamented Mr. Olanrewaju.
Around 85 percent of the textile items available in the local market are smuggled and fake items. China-made wax print fabrics are counterfeited with trade marks of Nigerian manufacturers. Uneven power supply is another hurdle for the industry.
Cost of power supplied to the manufacturers in Nigeria is relatively higher than that of other countries, according to the United Nations Industrial Development Organization study undertaken in the year 2008, he informed.
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