CEM REPORT, MANUFACTURING | In a cry to stay afloat, textile manufacturers in Nigeria have called upon the federal government to create a special grant that would revive the industry.
According to Otuekong Udoh, Pioneer President, Carpet Manufacturers Association of Nigeria, the textile industry in the country is in a deplorable condition as a result of the state of the nation’s economy.
In a statement, Udoh stated that over 60,000 of their workers have lost their jobs, while allied companies, suppliers, distributors, transporters and others have been forced to shut down leading to indirect job loss.
He said that the entire indigenous textile manufacturing companies like Jackson Devos, Aswani and many others have gone aground because of their chief executive roles and fight for democracy using NADECO as a platform.
Udoh noted that the two surviving textile industries are owned by foreign nationals, which amounts to capital flight.
“About 30 indigenous carpet manufacturing companies in the country have folded up and according to the Manufacturers Association of Nigeria (MAN), there are only two of such companies still functioning.”
While commending the President Bola Ahmed Tinubu administration’s interest in reviving the manufacturing sector through the provision of financial support, he recommended the creation of special intervention grants for manufacturers.
“I wish to commend President Tinubu and the government for considering and providing financial support to manufacturers in the country.
“It is a good beginning. I would suggest that the government considers providing special intervention grants to manufacturers, with proper monitoring mechanisms to ensure that only companies with requisite structure and infrastructure benefit from such support.”
Udoh further stated that the government should revive ailing industry which can strengthen the nation’s economy and provide employment. He noted that importation was not the way to go but local production.
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“For any economy to grow, the government as a matter of necessity and urgency should bring back the industries which are the backbone of any economy.
“Any country that does not pay great attention to the development of its private sector, which includes the small scale industries, cannot create the required and much desired employment for its citizens.
“Any country relying on importation of most products the citizens consume cannot enjoy a stable economy because of certain economic deficiencies and market forces.
“Nigeria continues to be a dumping ground for foreign goods as there is no encouragement from government for manufacturers to step up their game.”
