Victor Ahiuma-Young
5 November 2008
Federal Government's delay in signing the guarantee for the N70 billion Textile sector bail out loan from the United Bank of Africa (UBA) is responsible for non disbursement, even as both the employers and workers in the industry have raised alarm that only government immediate intervention can save the sector from imminent collapse.
Assistant General Manager, Credit Appraisal, Nigeria Export Import Bank (NEXIM), Dr. Jeremiah Abba, who disclosed this in Abuja said that government has done every other thing concerning the release of the fund which he said is a loan that will attract 9 per cent interest rate.
Speaking at a policy dialogue forum on Nigerian Textile Industry, organised by the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN) in collaboration with the Friedriech Ebert Foundation (FEF), he said that the facility is meant for among other things, equipment renewal and working capital.
According to him, the government has also through the Central Bank of Nigeria (CBN), Security and Exchange Commission (SEC) and Corporate Affairs Commission (CAC) granted several weavers, stressing that all equipment to be imported under the N70 billion revival programme would be tax free.
He said that NEXIM which the Federal Executive Council (FEC) mandated to source for the fund from UBA in May 2007 has raised the fund and that. President Yar' Adua's government reconfirmed and given the approval to the fund early this year.
He said NEXIM team had visited not less than 66 textile companies across the country and that the fund is 99 per cent ready, saying that "what is remaining is for the Federal Government to sign the guarantee for the loan before it can be released for disbursement."
Commenting on what appeared to be a struggle between NEXIM and Bank of Industry (BOI) over the disbursement of the fund, Dr Abba, said that FEC has mandated NEXIM to disburse the fund and would manage and ensure the recovery of the loan.
He explained that the process for disbursement of the fund is so rigorous and that all necessary documents have been sent to the appropriate ministries for action.
Speaking, employers in the sector under the aegis of Nigerian Textile Manufacturers association (NTMA), lamented that the situation in the Nigerian Textile Industry is alarming and pointed that unless urgent steps are taken by the government, a total collapse of the sector is imminent.
Represented by the NTMA's Executive Secretary, Mr. Paul Olarewaju, the employers said: "The most serious problem afflicting the industry is the unabated influx of counterfeit textiles from China. There has been a sharp increase in the volume of textiles smuggled in through the land borders, particularly via Niger Republic. These goods originate from China and specifically targeted;
On his part, President of (NUTGTWN, Comrade Reginald Agulanna, lamented that the sector had before 1997 boasted of over 250 textile mills and employing over 250,000 direct employees can today not boast of less than 25 firms with less than 24,000 employees. He blamed the increasing decline of the sector to the consequences of World Trade Organisation (WTO) which opened up the Nigerian market to outside world, smuggling and dumping of fake and substandard textile materials from China, lack power among other things.
Speaking, the Comptroller-General of Nigerian Custom Service (NCS), Mr Hamid Bello Ahmed, called for a change of attitude towards locally made goods especially the nation's leaders.
According to him: "Nigerians are good in copying their leaders. If our leaders would shun foreign made goods. I remember around 1979 or there about. There was a governor in Bornu state and he used to wear one kind of cap. before he came to power, that cap was sold at N5.00 at that time. But when he became governor and was still wearing that cap, the value rose to N50.00.
There was a type of dress that former President Shehu Shagari was wearing and people were calling it Shagari style. Most people were wearing sewing the style wanting to copy President Shagari. Nigerians are good at copying their leaders.
If our leaders shun all banned items or goods, I bet you Nigerians would shun the items, there would not be market for smugglers of those goods. Take for example, if I traveled out and bought a foreign item for my boss in the office, and my boss asks me, what I am going to do with this? Tell me this is done in Nigeria?, Next time, if I travel, I will not buy foreign goods.
Smuggling is booming because there is ready market for it. From our leaders to ourselves, if we shun foreign goods, smuggling would cease in the country."
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