Lagos - Nigeria's textile, apparel and
footwear industry is earmarked to contribute significantly to plans to
diversify the economy.
Calls to broaden the economic horizons have been loud in
recent months owing to the decline in the international price of oil, a major
foreign currency earner for Nigeria.
“The new administration favours the revival of the
country's textile and footwear industry as it would play a major role in
diversifying the economy.
"Not only could it result in revenue diversification
and reduce pressure on the import bill, it could also help boost employment,”
said FBN Capital, the local financial institution.
The sub-sector accounted for 21 percent of manufacturing
gross domestic product in the third quarter of the current year.
However, it contracted by -13 percent year-on-year.
“This is understandable considering the economy as a
whole is strained due to the current macro headwinds,” said FBN Capital.
According to a report released by the National Union of
Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), the textile
industry performed poorly in the first half of 2014.
Also Read: First Nigeria manufacturing index released
This was mainly due to heavy inflow of smuggled textiles,
which usually accounts for over 75 percent of Nigeria's textile market.
Annual cotton production was estimated at 533 metric
tonnes (mt), with Zamfara and Katsina accounting for 25 percent and 22 percent
of total production respectively.
There are suggestions over 30 operational textile mills
are operational while 80 are moribund.
Meanwhile, Aba, located in south-east Nigeria, has
received global recognition with investors from Brazil indicating interest in
collaborating with the state government to provide modern machineries aimed at
boosting shoe production.
Also, the Nigerian Investment Promotion Commission (NIPC)
recently announced it would work closely with National Cotton, Textile and
Garment (CTG) policy committee to resuscitate the country's
The CBN has indicated interest in lending support to this
industry through the establishment of an intervention fund at a single digit
- CAJ News