Daily Independent (Lagos)
Sylvester Enoghase
6 July 2009
interview
Lagos — The festering problems of textile industry in the country in the past 10 years have generated much heat as the N70 billion proposed by the Federal Government is yet to be disbursed to the stakeholders in the industry In this interview with Senior Correspondent Sylvester Enoghase , Pius Isagua, General Secretary, Textile, Garment and Tailoring Senior Staff Association of Nigeria (TGTSSAN) says that the shoddy handling of Federal Government revival of the textile industry without consulting with actual stakeholders calls for serious concern.
Excerpts.
Do you think the new position of the FG on the revitalisation of the textile industry is in the right direction?
The leadership of Textile, Garment & Tailoring Senior Staff Association of Nigeria (TGTSSAN) is sad about the storm that greeted the renewed efforts of the Federal Government to revive the textile industry by its last week decision to re-launch sourcing of funds for the project.
It is sad that since 2006, government has been working on what Obasanjo's government called "Textile Revival Project", but up till today, in spite of the various government and ministerial pronouncements, there is no kobo that has been sourced in the so-called N70billion, of Obasanjo's government; and similarly, the N70billion, N80billion of Yar Adua's government has not been sourced.
It is unfortunate that the two governments spent almost five years to source in vain N70billion revival fund for the textile industry. Unknown to these leaders, they are writing and publishing their own reports and activities in the public domain.
The first effort at raising the fund started in July 2006 and ended in May 2007 without sourcing for anything but was able to disburse first part of the funds that never was to unknown people.
Our leaders will continue to ridicule this country as they have adopted the culture of monopolising the act of governance. Our leaders are aware that without LPFO, factories cannot operate, yet the price is being increased on a routine basis, and there is not solution from government. One would wonder that if the politicians' promise of providing jobs will be met when nothing is done to protect even the existing organisations
It is said that when protests are sent to government, they are ignored as those in power are either ignorant of the matter or have no knowledge or have no regard for the general public.
We have been advocating a Textile Council or commission to supervise the operations of the industry and plan its growth, but those in power cannot accept the proposal as they never listen to others or accept suggestion from others. Some years back, Gherzi consultant made the same suggestion and was also ignored.
The position of TGTSSAN is that if the N70 billion funds are sourced, certain percentage should not be given out on loans but should be used for common services and others that would benefit all the industry.
We have been advocating that institutions like Customs should be strengthened operationally to prevent smuggling and dumping.
Also, in our view, we suggested that a Stakeholders' Committee to disburse the fund to be put in place otherwise the funds will go to wrong hands.
We proposed that a Nigerian Arm of a Monitoring Committee should be set up to hook up with African Peer Review Mechanism for the purpose of implementing the revival project.
We have confidence in U. B. A. and NEXIM banks to be able to source for the fund so that the loans go to those currently sustaining their operations. We are also of the view that existing mills should be aided by the payment of EEG so that they do not die before the funds are available.
Are you saying that the stakeholders are not carried along by the Federal Government in restoring the lost glory of the industry?
Yes. The Presidency in an effort to save the industry imposed another ban this time on printed fabrics. As usual, powerful Nigerians under the name of Lace Dealers Association, asked for waivers and a shift in the effective date of the ban. Through to type, they say they employ 3 million workers who will be thrown to Labour market if their application is not granted and they were given waivers.
Also, during the this total ban, the Government again through the Minister of Finance granted Benin Republic three import corridors to bring in textile and other products to Nigeria. On page 19 of Gherzi report in a survey of fabric production in West Africa in 2002, fewer than four categories of production, Nigeria's production level was put at 71.4 percent and Benin Republic was at 2.9 percent. The closest level to Nigeria was Ghana which was at 7.9 percent.
This act of exhibition created the greatest contradiction and conflict in policy for producing at 2.9 percent level to export to a country producing at 71.4 percent.
In any way, we lost at this policy as Nigeria was providing Republic of Benin the opportunity to import foreign textile goods, print their labels to flood Nigeria textile market through the three corridors granted to her. This facility in addition to the smuggling going through its route into Nigeria created more problems to Nigeria.
All these activities of neglect by the government resulted in Nigerian Textile Industry having only 27 percent share in our home textile market in 2007.
Are we as a country investing enough in the development of textile industries?
We are not investing anything the development of textile industry in the country.Before the declining fortunes of the textile industry in the 1950s, it was reputed to be the fastest growing manufacturing industry in the country and the highest employer of labour after Government.
So, it was acknowledged as the most strategic manufacturing sector in the economy. Apart from its employment potential; its contribution to its gross domestic product was sizeable. Therefore, this industry was seen by all as sine-qua-non on which the country should prioritise.
In the survey by Gherzi on cotton farmers, it was reported that we have 250,000 farmers and they employ labour over 500,000. These are facts about the textile industry potentials which should not be taken lightly in the national scheme of things.
What is your position on the European Union (EU) aggression against ACP countries?
The controversy on the signing of the Economic Partnership Agreement between the A. C. P. countries and the European Union (EU) where Mr. Peter Mandelson of the EU threatening A. C. P. countries (particularly Nigeria) of sanctions if they do not sign the agreement and open up their country borders to E. U. goods is unfortunate.
The efforts of Bashir Borodo, President, Manufacturing Association of Nigeria (MAN) who represents Nigeria in the A. C. P. countries negotiating team with the EU was a welcome development as he was not moved by the threat.
As Nigerians has suffered in the past in signing World Trade Organisation (WTO) agreement without study the position of Borodo would sustain the gains of trade liberalization journey of Nigeria.
I believe that most Nigerians have seen the effects of this type of agreement proposed by the EU as what as it affects most textile companies resulting to their closing shops because the foreign textile goods have taken over our markets.
I believe signing another agreement that would affect the textile industry will completely lead to the closure of industrial organisations in the country.
The idea of Borodo for negotiation of safe guides or protections before signing the EU agreement will ensure protection for our local industries because it is well known fact that the terms of country's trade agreement make or unmake a country's economic growth efforts.
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