• Friday, July 19, 2024
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BusinessDay

Growth seen as textile policy attracts investment

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The reviewed funding policy of the textile industry has attracted a new investor, even as stakeholders see a resurgence of the docile industry.

Vlisco Group, a Dutch textile and design company, has signed a memorandum of understanding (MoU) with the Federal Government to invest in the sub-sector. Vlisco Group’s activities are expected to generate more than 10,000 jobs in the medium term.

Hans Ouwendijk, CEO, Vlisco Group, said the new policy launched by the Federal Government had enabled the group to invest in Nigeria and to contribute to the building of a vibrant CTG sector.

The MoU is expected to diversify the economy in line with the government’s industrial revolution strategy.

Frank Jacobs, president, Manufacturers Association of Nigeria (MAN), described the new CTG policy as “the requisite compass” for revitalisation and growth of the cotton, textile and garment industry in Nigeria, adding that MAN would support holistic implementation of the policy.

“For us, the CTG policy is another milestone towards Nigeria’s Industrial Revolution Plan because it shows a clear and integrated approach towards complete revitalisation and growth of the industry across the entire value chain,” Jacobs said.

The reviewed CTG Fund is geared towards making cotton, textile and garment companies access long-term, low interest loans to finance their operations. The N100 billion CTG Fund had earlier been launched in 2010 by the Federal Government to change the tumbling fortunes of players in the industry. The Fund is being managed by the Bank of Industry (BoI).

The first modern textile industry in Nigeria, the Kaduna Textile Mill, started production in 1956. The primary reason for setting up the mill was to process the cotton being produced at the time, in the Northern part of the country. By the 70s and the 80s, the Nigerian textile industry had grown to become the third largest in Africa, according to a report by the United Nations.

Harrison Edeh