In order to revive the indigenous textile industry, the Federal Government of Nigeria has decided to earmark the 20 percent duty charged on textile imports, for financing the sector.
Minister of Trade and Investment, Olusegun Aganga substantiated the decision during a meeting with top officials of the Nigerian Textile Manufacturers Association (NTMA) in Abuja. NTMA Director-General, Jaiyeola Olanrewaju, and the National President, Ibrahim Igomu, headed the group.
The Minister informed that the 20 percent duty levied on textile imports would be utilized by the Government for revival of all non-operational textile manufacturing units across Nigeria.
He said that the move is aimed at enhancing the productivity of textile units pan Nigeria, mainly as the sector holds great potential for employment and wealth generation.
The levy on textile imports is meant to be given back to the sector, and hence there is no question of doubt about the decision as that is the original purpose behind imposing the duty, he added.
The Minister said the Government is duty-bound to create a conducive atmosphere that will enable the domestic industries to thrive, and the textile industry is a key segment that it is trying to develop, jointly with the stakeholders.
Besides employment generation, the industry also has great potential to generate handsome revenues for Government by way of taxes, he added.
Fibre2fashion News Desk - India