Daily Independent (Lagos)
Sylvester Enoghase
2 December 2008
Irked by the closure of more than 25 textile companies in the country in the last three months, with over 36,000 job losses, the Textile, Garment and Tailoring Senior Staff Association of Nigeria (TGTSSAN), has challenged the Federal Government to use its political will to stop further closure, saying that government's industrial policy has failed.
TGTSSAN's National President, Yakubu Jerekeri, said this at the association's Triennial/Quadrennial National Delegate Conference held at Semshak hotel, Jos, Plateau State .
"Federal Government has never exerted its political will to change the industrial policy that hurts the poor, create unemployment and lead to exploitation of Nigerian workers, especially the nation's textile workers.
"The challenges that led to the collapse of not less than 150 textile companies over the past nine years is as a result of failed industrial policy of the Federal Government. It must not continue," he added
Jekeri noted that the high cost of sourcing for Black Oil (LPFO), an important production input, has to a large extent, contributed in the increasing cost of local textile products, making imported brands cheaper than local equivalents.
The labour leader said "The Federal Government in June 2006 set up a committee chaired by the former Finance Minister, Dr. Nenadi Usman to source for N50 billion to rehabilitate the textile industry, yet none of the two in-house unions were involved in the committee"
He maintained that the mechanism to revive the textile industry, according to the immediate past Federal Capital Territory Minister, Dr Aliyu Modibo, was increased to N80 billion and disbursement was to start in May 2007.
He said "The committee set up to disburse the new projected money by the Federal Government from May 9, 2007 could not disburse any fund to the best knowledge of the in-house labour leaders."
He recalled that on Wednesday May 16, 2007, the then Minister of Information and Communications, Mr. Frank Nweke Jnr, told journalists that the Federal Executive Council (FEC) had directed NEXIM Bank to raise the N80 billion through the issuance of Euro bonds to textile industry operators at low interest rates.
However, Jekeri regreted that the directive was never obeyed till date.
"While the Federal Government directed the disbursement of the N80 billion in line with the recommendation of the committee for the revival of textile industry, none of the operators of the industry has come out with any information about collecting the money."
The labour leader further revealed that other measures expected to boost the industry as recommended by the committee included the granting of a five-year tax holiday for operators in the industry, as well as the removal of all import levies on textile manufacturing materials.
Jekeri maintained that contrary to the expectations of workers in the textile industry, a statement by the Managing Director and Chief Executive of Nigerian Export/Import Bank (NEXIM), Baba Yusuf Ahmed on September 12, 2007, disclosed that the Federal Government did not set any money aside for the revival of textile industry.
He said "We are not surprised that the FEC directives towards the strengthening of anti-smuggling initiatives, as well as severe penalties for convicted smugglers and their government accomplices with its neighbours, particularly Benin Republic and Niger in the anti-smuggling campaign are not effective."
According to him, with the confused situation and failure to implement these past recommendations, over 160 mills have closed shops.
"This has resulted in lost of jobs by many Nigerians working in the textiles companies, while the few left are not sure of the security of their employment in this sector", he said.
In the same vein, TGTSSAN's General Secretary, Pius Isagua accused the Federal Government of not been able to provide the enabling environment for the reviving of the few textile industries in the country.
He said "The organised labour has over the years advocated for a Textile Council or commission to supervise the operations of the industry and plan its growth but the Federal Government has always ignored our recommendations."
According to Isagua, unless the Federal Government quickly disburses the N80 billion bond for the revitalisation of the ailing textile industry in the country, the hope of the few operating companies would be dashed.
He noted that targeted remedial actions carried out in the last nine years did not change situation. Instead, he said new diversionary tactics engaged by smugglers have worsened the textile industry's fortunes.
"This is as a result of government's conflicting policies that are helping to frustrate every effort at revival of the industry," he lamented.
"The irregular power supply, coupled with the poor infrastructural facilities in the country have compelled most industry operators to depend mainly on generating sets for electricity supply while maintenance of infrastructural facilities is done by operating companies," he added
Earlier, the President General of Trade Union Congress (TUC), Peter Esele, called on the Federal Government to brace up to the challenges of providing constant electricity supply, standard road and rail transport system to save the extinction of textile sector from the nation's economy.
Esele, who accused the Federal Government of pursuing too many projects without anything to show for it remarked that the 7-point Agenda of the government should be narrowed to only three major projects in the next two years of this administration.
"The Federal Government must drop the crusade of 7-point Agenda and brace up to the challenges of meeting the criteria for providing at least three key priority projects, as real economic integration cannot take place without constant electricity supply, good road and rail transport system as well as an enabling environment for industrial harmony"
The labour leader maintained that the organised labour is disturbed that 18 months after President Umaru Musa Yar' Adua was sworn-in as President, the Federal Government, with its crusade on 7-Point Agenda has not been able to deliver any of the priority projects that would turn around the economy.
Esele, who was represented by the immediate past President of the TUC, Peace Obiajelu, called on the Federal Government to use its political will to do away with the 'National Grid System' to allow the respective states of the federation to generate electricity.
"The Federal Government should realise that if the 36 states of the Federation have independent states' electricity corporations, the current black out in the name of states hooking to the National Grid will not take place.
"The states should be allowed to generate self electricity because there is abundance of dams, coal, wind which the respective states can depend on for power generation", he added
Esele, quoting Modibo on the release of N80 billion for the revival of textile industry in 2007 by the Federal Government argued that it is sad that government has made empty promises in the revival of the industry.
Modibo, then Minister of Commerce and Industry at his ministerial press briefing disclosed that a Cotton/Textile Revival Fund of N80 billion has been approved by the Federal Government to address the multiple problems of the sector at all levels and to arrest the decline in the production of textiles and promote export."
He however said that there is need for the Federal Government to investigate why the recommendations made by the revival committee set up in the textile industry could not be implemented and bring culprits to book.
Also, the Controller, Federal Ministry of Labour and Productivity in Jos, Mr. Tsokwa John Kanku, who represented the Minister of Labour Dr. Hassan Lawal, noted that the Federal Government is fully prepared to provide the infrastructural facilities for industrial development of the country.
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