Home / Knowledge / News / Textiles / Forex scarcity threatens Nigerian textiles: NTMA
Forex scarcity threatens Nigerian textiles: NTMA
17
Nov '16

The textile industry in Nigeria may face extinction if the Central Bank of Nigeria (CBN) does not allow the manufacturers access to foreign exchange (forex). The textile manufacturing industry is in crisis with the non-availability of forex for procurement of raw materials. If this situation prevails, few of the manufacturers may suspend production.

The concern was raised by Hamma Kwajaffa, director-general of the Nigerian Textile Manufacturers' Association (NTMA) in an interview with the News Agency of Nigeria in Lagos. However, it was on November 7, 2016 that CBN had released $660 million to the manufacturers to source raw materials and spare parts, as reported by the Nigerian news agency.

The textile industry is on the brink of crisis, said Kwajaffa, adding that the number of appeals made by the manufacturers for access to foreign exchange also went in vain. In an attempt to allow NTMA members access to forex, Kwajaffa had also called for improved collaboration between the apex bank and commercial banks.

“To access foreign exchange, we have to go through our banks. They keep telling us that they do not have foreign exchange to give. The situation has impeded our production activity because most of our production components cannot be sourced locally. By now, many companies ought to have fabrics in the market for Christmas season but they cannot do that. Some of the manufacturers have already stopped production, and it is becoming difficult to convince others not to suspend production,” Kwajaffa said.

“Easy availability of foreign exchange will allow textile manufacturers access to procure raw materials, and thus help in enhancing production, resulting in job creation and increased contribution to Nigeria's gross domestic product,” he added.

At the peak of the economic boom in the early 80s, Nigeria had 84 textile mills. The number has dropped to 24 now. The workforce in these industries nationwide has also been reduced from 250,000 to about 20,000. (RR)

 

Fibre2Fashion.com – India


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 28th Nov 2020

3 Bangla RMG firms present energy efficiency action plans

Small energy efficiency working groups (SEEWGs) of three top tier...

Pic: Shutterstock

Textiles | On 28th Nov 2020

Pak PM asks ministries to help textile sector meet demand

Pakistani Prime Minister Imran Khan recently directed the commerce...

Pic: Shutterstock

Apparel/Garments | On 28th Nov 2020

Rwanda's garment-textile exports grow by 83% in 2 years

Rwanda's textile and garment sector grew 83 per cent in value between ...

Interviews View All

C. Dhandayuthapani, Mag Solvics Pvt. Ltd

C. Dhandayuthapani
Mag Solvics Pvt. Ltd

ITME 2016 exploited our full strength like never before

Amrit Sethia, SOIE

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Subrata Ghosh,

Subrata Ghosh

Nandan Denim, part of leading conglomerate Chiripal Group, commenced its...

Nina Smith,

Nina Smith

GoodWeave International, a nonprofit working to end child, forced and...

Pratik Agarwal,

Pratik Agarwal

Breya is a brand of Indo-Western clothes for women owned by ABP Apparels...

Karl Zelik, Vanderbilt University

Karl Zelik
Vanderbilt University

A team of engineers at the Vanderbilt University has designed a smart...

Sameer Sonkusale & Rachel Owyeung, Tufts University

Sameer Sonkusale & Rachel Owyeung
Tufts University

A team at the Tufts University in Massachusetts was recently in news for...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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


November 2020

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


Advanced Search