Foreign investors to support Nigerian textile firms  
 

By Toba Agboola

13th October 2009

Succour is on the way for the textile industries as foreign investors have signified their intention to invest in the sector.

Announcing this at a press briefing in preparation for the forthcoming textile conference, in Lagos, the Chief Executive Officer, Banquaires Facility International Limited, Dr Felix Adesanmi Adeduo, said the foreign investors were aware of challenges facing the textile companies and were ready to support and help in resuscitating some of the textile firms currently not in operation. He said this is a major agenda expected to be addressed at the forthcoming textile conference, being organised by Banquaires Facilities International Limited.

Adeduro said the recent report showed that more textile companies are closing down with many people losing their jobs, adding that Nigeria’s foreign reserves have taken a dip and this would continue because the country is importing rather than manufacturing.

“Today, the country has less than 20 per cent companies in full-time operation, meeting less than 10 per cent of the county’s textile requirements. Others have closed down as a result of multi-dimensional challenges which have to do with power crisis, incessant labor unrest, unavailability of cheap loans and working capital, obsolete equipment inadequacy of skilled human resource element, unbridled importation of textile materials and lack of textile industrial policy. When we have our textile industries working, it is going to take the shine out of this and the manufacturing sector is going to guarantee so many positive things in the economy," he said.

Speaking on one of the ways forward, he advised the government to allow the importation of textile products into the country with heavy duties. This, according to him will bring in more income needed into the sector and at the same time, discourage importation.

Shedding more light on the conference, he said its primary goal is the resuscitation of Nigeria; ailing textile industry and the ultimate harnessing of the huge potentialities of the industry for the greater benefit of Nigerians and the world at large.

He stressed that the Nigerian economy has for many years been running on weak and volatile pillars held by the oil and gas and the banking sector.

His words: “While the oil sector contributes 80 per cent of our National earnings, the effect in terms of economic growth and process is limited. Much of these earnings are yet to reach the larger percentage of Nigerians. The story is also the same in the banking sector. With its huge population, ever stretching domestic market already fired by drive for mass consumption and huge raw material resource base, Nigeria’s economy can only attain genuine and sustainable growth on pillars strengthening by strong industrial base. Without this, the dream of becoming one of the 20 leading economies in the World by year 2020, will be a mirage".

Source: The Nation

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