The N100 billion Cotton, Textile and Garment Fund (CTG Fund) floated by the Federal Government to rescue the Nigeria textile sector from total collapse seems not to be yielding the intended result, as markets in Kano are flooded with foreign textile products.
This is happening as statistics by the National Bureau of Statistics (NBS) shows that over $4 billion is expended annually on importation of 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.
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As the tags on the materials on display in the shops indicated that they were manufactured in countries like China, India, Pakistan, Turkey, and the UK, among others.
The continuing domination of the Nigerian market by foreign textile materials, experts say is because the local textile and garment manufacturing companies are yet to find their feet, in spite of the government’s support.
Commenting on the situation, Gambo Danpass, one of the textile dealers in the market, attributed it to the fact that most of the Nigerian textile companies might have collapsed beyond redemption.
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 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 make a positive impact. It is worrisome to note that the huge public investment in the sector is not bringing the desired result, which is the reason why the process of disbursement of the fund needs to be looked into,” he said.
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 neighbouring countries.
It would be recalled that the government, also imposed 10 percent development levy on textile imported into the country, to support local companies, but that also seems not to have impacted the local manufacturers.
Available record shows that only about eight textile manufacturing companies, out of the estimated 200 companies operating in the 1980s 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 the centre of textile retails, only two companies are managing to producing in the state skeletally, despite receiving disbursement from the CTG Fund.
The two companies are African Textile Manufacturers Limited, and Tofa Textile Limited.
