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Lifting of import ban may lead to closure of textile units
Dec '10
The Nigerian Government's move to allow imported textiles in the country by lifting the ban is likely to result in the shutting down of a number of textile units in the West African country.

In view of the current business scenario, the country's textile industry is not in a condition to contest the imported textiles. If imported textiles are flooded in the country's market over the next one year's time, domestic industries will have to face difficulties in selling their products and a number of them would definitely be forced to shut down.

While there has been a sharp fall in the number of textile units functional in the country from 124 in 1996 to 25 now, and the workers strength has also fallen from 24,000 to 13,000, which is mainly due to illegal importation of substandard textiles from other countries, with which the domestic firms are not able to contest due to higher costs.

The country banned imports of textiles in 2003, but as per the recent announcement, the government has resolved to replace this ban on textile, furniture and beverages items with 10 to 20 percent tariffs.

Fibre2fashion News Desk-India

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