Home / Knowledge / News / Textiles / Fuel & power price hike hurts Nigerian textile sector

Fuel & power price hike hurts Nigerian textile sector

Aug '12
The recent hike in prices of petroleum products and electricity tariffs has increased the cost of textile production in Nigeria, according to the Nigerian Textile Manufacturers Association (NTMA).
Speaking to fibre2fashion, NTMA’s Director-General, Mr. Jaiyeola Olanrewaju stated, “Price of Low Pour Fuel Oil (LPFO) is increased by 26 percent, while electricity tariff is increased by 50 percent.  This automatically increases the cost of textile production.”
The Nigerian textile sector is struggling despite some assistance extended by the Government. Mr. Olanrewaju says, “The Government's effort to revive the textile industry in the country by providing some soft loans is not yet yielding the expected result. A lot of challenges still need to be addressed, especially, the reduction in cost of production, which had made the Nigerian textiles uncompetitive compared to foreign ones.”
“The Nigerian textile industry is at its lowest ebb and the local manufacturers are facing several issues due to the high priced fuel and electricity, as well as competition from the fabrics brought from foreign nations. Hence, the Government should address these issues first in order to find a solution to the problems bothering the sector,” he avers. 
Suggesting how the Government’s active intervention can help the situation, he opines, “The Government could ease various taxes on the textile industry and subsidise the industry's expenses on consumption of petroleum products, such as LPFO, as well as gas and electricity consumption from the national grid.
“If the Government really wants to revive the textile industry in Nigeria, it has to subsidise the cost of production to enable Nigerian textiles to compete with foreign fabrics. The Government should also curtail the level of influx of foreign textiles into the country,” he concludes.

Fibre2fashion News Desk - India

Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 4th Aug 2021

US FTC votes to reverse course on repeal of fabric care labels

The US Federal Trade Commission (FTC) recently voted to retain the...


Textiles | On 4th Aug 2021

UKFT to design & pilot new platform to drive sustainability in fashion

The UK Fashion & Textile Association (UKFT) has started working with...

Pic: Kontoor Brands/Wrangler

Apparel/Garments | On 4th Aug 2021

US’ Kontoor aims for sustainable growth with diversity & inclusivity

Kontoor Brands, an American apparel company with denim brands like...

Interviews View All

International apparel brands, Head honchos

International apparel brands
Head honchos

Launched first collection at onset of Covid

Textile Industry, Head honchos

Textile Industry
Head honchos

Marry with brand ethos

India-EU Summit, Representatives

India-EU Summit

India-EU FTA will provide EU with better access to a huge & rapidly...

Erwin Devloo,

Erwin Devloo

The Picanol Group is a diversified industrial group active worldwide in...

Mumin Can Eker,

Mumin Can Eker

Maseksport Inc is a readymade garment exporter. Founded in Izmir in 1989,...

Zayed Moyeen,

Zayed Moyeen

Far East Knitting and Dyeing Industries LTD (FEKDIL) was established in...

Jacques Prigneaux, EDANA

Jacques Prigneaux

EDANA has been the leading global association and voice of the nonwovens...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Shalini Sharma & Shweta Pundir Sharma, Six Yard Story

Shalini Sharma & Shweta Pundir Sharma
Six Yard Story

Six Yard Story is a premium artisanal brand with a focus to bring handloom ...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

July 2021

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

Advanced Search