After N100bn, Nigeria’s textile, garment manufacturing industry yet to see impact

The N100 billion Cotton, Textile and Garment Fund (CTG Fund) floated by the Federal Government as part of the interventional support geared at saving the Nigeria textile sector from total collapse seems not to be yielding the intended result, as markets in Kano have been taken over by foreign textile products.

This development is coming on the heels of the NBS statistics which shows that over $4 billīon is being expended annually on the importation of the textile and finished garment by Nigeria.

Checks by BusinessDay, in some of the popular Textile Markets in Kano metropolis on Wednesday, revealed that the CTG Development Fund put in place by the Government in 2019, is yet to positively impact on the nation’s quest for self-sufficiency in textile and garment manufacturing.

At the Kantin-Kuri market, one of the textile business hubs in northern Nigeria, it was observed that 99 percent of textile materials being offered for sale at the market are imported materials.

This reality was confirmed by the tags on the materials on display in the shops which indicated that they were manufactured in countries, such as, China, India, Pakistan, Turkey, and UK, among others.

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The continuing domination of the Nigerian market by foreign textile materials, experts believe was because the local textile and garment manufacturing companies are yet to find their feet, in spite the government support.

Commenting on the situation, Gambo Danpass, one of the big time textile dealers in the market, attributed the development to the fact that most of the Nigerian textile companies might have collapsed beyond repair.

Danpass, who has been in the textile business for over 40 years, stated that the control of the country’s textile market by foreign materials will continue until the right environment is created by the government for local textile companies to thrive.

“The situation you see in the market here has to do with the fact that the intervention fund is yet to be impactive.It is a worrisome thing to see that the huge public investment in the sector is not bringing the desired result, which is the reason why the disbursement of the fund needs to be looked into”, he pointed out.

Experts are of the view that 85 percent of all textile materials being offered for sale in Nigerian markets are smuggled into the country through the neighbouring countries.
The step taken by the government to also support local textile companies was the imposition of 10 percent development levy on all textile imported into the country, this measure also seems not to be impacting on the production capacity of the local companies.

Presently, only about eight textile manufacturing companies, out of the estimated 200 companies, operating in the country, in 1980, are still in operation.
The existence of the CTG Fund had been unable to prevent more local textile manufacturing companies from going out of operation, experts pointed out.

In Kano, despite its huge advantage as a centre of textile retails, only two companies are producing skeletally, despite receiving disbursement from the CTG Fund.