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Ban of fabric imports raise pressure on ailing textile industry

18
Nov '08
Nigerian textile industry is in a miserable state, with most plants being shut down and others struggling to survive. Manufacturers Association of Nigeria (MAN) recently said that due to power shortage and high production costs the surviving companies are also being forced to operate below 30 percent capacity.

The import of fabrics is banned in Nigeria, so that the local industry is protected. However, this rule is further adding pressure on the clothing manufacturers.

Nevertheless, insiders reveal that fabric imports from Dubai are on a rise, while textile industry is weakening.

Experts say that textile manufacturers are forced to import these products as the local fabrics neither meet their quantity nor quality demands.

Besides, fabric industry is also facing sever problems like lack of liquidity and inadequate power and fuel supply. Expert explains that N70 billion earmarked by Government for this sector is not enough.

Industry insider says that fabrics import from Dubai reach over N17 billion. Companies prefer these materials since they are cheap and of higher quality, which upgrades standard of their products.

Advisers stress that Government should develop the local fabric manufacturers by providing backing in financial and related areas, and inturn help the overall textile industry.


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