Reviving textile/cotton industry
The Federal Government’s plan to revamp the textile and cotton industry and create a projected 1.4 million jobs annually is an ambitious and commendable move. But a strong political will and the right policy framework are necessary to actualise it. This has become necessary because of the potential of the subsector to the economy. No fewer than 145 Cotton and Textile Garment (CTG) mills across the country collapsed between 1980 and 2016 due to unfriendly business climate. The Federal Government and the management of the International Cotton Advisory Committee (ICAC) are already discussing on how to revive the moribund sector.
Apart from discussing the African Cotton Sustainability Programme 2030, they will come up with a roadmap for having a vibrant textile and cotton industry and other key components in the value chain, comprising farming, weaving, ginning in line with the industrialisation drive of the present administration. As laudable as this plan is on paper, the bottom line is to walk the talk. It should go beyond the official pronouncement. Let the meeting with the delegation from the ICAC be the beginning of Nigeria’s fresh commitment to revive the textile industry as part of the broad objective of charting a new course for the economy.
The administrations of Goodluck Jonathan and Muhammadu Buhari made plans to revive the sector but they didn’t yield the desired results, despite huge funds injected into the ailing sector. In 2010, the Jonathan unveiled a N100billion plan to revive the sector. The plan was aimed at saving about 8,000 jobs in the industry. It neither saved the 8.000 jobs nor created the 5,000 new ones as promised. This time around, the government should ensure that the project pulls through. There will be no excuses. Nigeria must regain its eminent position in International Cotton Advisory Community, which it lost decades ago.
As a matter of urgency, the government must recognise the importance of promoting local production of fabrics. Indeed, statistics show that a vibrant textile and cotton industry can create over 15 million jobs. Until the collapse of the textile industry, the sector was the second biggest employer of labour after agriculture. For the sector to be revamped, government must address the challenges that led to its collapse.
The high cost of raw materials, unstable power supply, importation of cheaper textiles from Asian countries and the smuggling of substandard textile materials contributed to the collapse of the sector. According to the Manufacturers Association of Nigeria (MAN), the annual growth of the sector was 67 per cent in its heydays, and 25 per cent of the Gross Domestic Product (GDP).
Reviving the labour-intensive sector will boost the economy and create more jobs. However, government must check smuggling and indiscriminate dumping of foreign fabrics in the country. We urge the Nigeria Customs Service (NCS) to deal with this menace and save the local textile sector. The Standard Organisation of Nigeria (SON) will also help in this regard.
While adequate financial intervention is necessary to revive the textile industry, the nation’s business environment should be improved with tax waivers, good roads, security and stable electricity. The promotion of our local fabrics as displayed by our contingent to the Paris Olympics should be encouraged. We must be proud of our products.
Therefore, there is need for restriction on imported textile materials and garments that can be produced locally. Let the government do all within its powers to revive the cotton/textile industry. It is indeed one of the measures to diversify the economy away from crude oil and gas. At the same time, the sector will boost our foreign reserves. It is worth emphasising that nations that have made their marks in the competitive global markets are those that are promoting and giving priority attention to homemade goods.
It is unfortunate that successive governments have not prioritised the revamping of the agricultural sector, especially palm oil, cocoa and groundnuts. It is time for the Tinubu administration to refocus on these areas that Nigeria has comparative advantage. These are areas that can keep business transaction cost relatively low, while encouraging savings and investments.
The private sector involvement is key in the present effort to revamp the textile sector. In that regard, government should seek the buy-in of state governments and the key players in the sector in its policy formulation, including tariff and border control measures, exchange rate management and other enablers that will reposition the sector.
