[size=15pt]Industrialist declares 104 textile companies dead [/size]

Ayodamola Owoseye with agency report


August 14, 2009 06:36AMT
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Over 104 textile companies in Nigeria have closed shop due to the combined factors of an unfriendly manufacturing environment and the high incidence of smuggling and importation.

Adesanmi Adeduro, managing director of Banquaires Facilities Intl Ltd., disclosed this in Lagos, while announcing an upcoming conference for the textile industry, scheduled to hold between September 1 and 4, 2009 in Lagos.

"About 104 out of the 140 textile companies in the country have stopped producing, with over 200,000 workers losing their jobs. Most of the retrenched workers are now commercial motorcycle riders," he said.


State of the industry

Commenting on the state of the textile industry, Mr. Adeduro said, "Smuggling has been a major challenge to the local industry; over ₦4 trillion worth of textiles materials are smuggled into the country yearly. Another challenge facing the industry is the pace of the government on implementing the bailout funds for reviving the textile industry."

"In the 1980s, Nigeria had over 140 textile companies, but can hardly boost of 40 now. The few that are left are producing at less than 10 percent of their installed capacity utilisation. The influx of textiles and fabrics into the country is a result of government's failure to implement its political will on banned textiles and monitor our porous borders. This will continue to impact negatively on the textile industry if not checked," he added.


Policy on textiles

Bernard Nwadialor, the Comptroller General of Customs, while addressing industry operators in Abuja last month, said all hands must be on deck in checking the smuggling of textile into the country if the sector must survive.

The federal government promised a ₦70 billion fund to bail the industry out, but the fund has been enmeshed in controversies, and was not even included in the 2009 budget.


The conference

Mr. Adeduro explained that the conference will assess the various problems facing the industry, through a series of lectures.

He said the lectures would focus on issues relating to management, infrastructure, particularly power and government policies that can help the industry grow.

He therefore urged the government to establish a regulatory framework and harmonise taxes to enable the industry grow. "The government should patronise local manufacturers and ensure that the relevant security agencies perform their duties," he said.

Partial list of troubled textile companies


Aba Textile Mills Plc

Afprint Nigeria Plc

Asaba Textile Mills Plc

Bholsons & Company (Nigeria) Ltd

Enpee Industries Plc

Excelsior Garment Factory Ltd

GDM Textiles Manufacturing Ltd

Haffar Industrial Co Ltd

Horizon Fibres (Nig) plc

Jaybee Industries Nigeria Ltd

Kaduna Textiles Ltd

Lucky Fibres (Nig) plc

Millet Nigeria Ltd

Nichemtex Industries Ltd

Nigeria Textiles Manufacturers Association

Nigerian Textiles Mills Plc

Nitol Textiles Manufacturing Co NIG Ltd

Nortex Nigeria Ltd

Northern Nigeria Textile Mills Ltd

Novelty Industrial Co Ltd

President Clothing Co Ltd

Prestige Industries Ltd

Rola Stores Ltd Nigeria

Specomill Textiles Ltd

Stretch Fibres (Nig) plc

Sunflag Knitting Mills Nigeria Ltd

Textiles Manufacturers Association ( Nigeria)

United Nigeria Textiles Ltd {UNT}

United Nigerian Textiles Plc

Universal Textile Industries Ltd

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