Nigeria loses $325m to smuggled textiles
Tuesday, 09 February 2010 22:55
Nigeria loses $325 million annually on account of evasion of customs duty and Value Added Tax (VAT) on smuggled textile materials into the country, Chairman of Nigerian Textile Manufacturers Association (NTMA), Mr Abiodun Ogunkoya has said.

He said this yesterday at a news conference in Lagos. He said about 85 percent of smuggled goods brought into the country worth $1.4 billion.

He said: “About 85 percent of the textiles being sold in our markets (especially printed textiles) are smuggled into the country.

“Wax print fabrics produced in China bear counterfeit trade marks of Nigeria manufacturers and fake SON markings printed on the labels and selvedge of the fabric. These fake products are found in all our major markets in Kano, Lagos, Onitsha and Ibadan.”

According to him, in order to stop the practice of smuggling of textiles into the country, the federal government must design an effective system to protect the local industry.

Lauding the Federal government over N100 billion revival funds for the textile industry, the Chairman said N20 billion out of the fund had been released to the Bank of Industry (BOI) as at the end of January.

The Chairman, who was optimistic that the whole N100 billion earmarked for the textile sector would be released to the Bank of Industry before the end of this year, also stressed that the fund would empower textile manufacturers in terms of retooling and providing for working capital.

He however said the sector is still beset with infrastructural problems like power and road, which will compromise the fund if necessary attention is not taken to address it.

He said it takes 20kwh to provide power in Nigeria which is far higher than India, Pakistan, China and Turkey.

Also speaking at the conference, Director General of Nigerian Textile Manufacturers Association Chief Jaiyeola Olarenwaju said the escalating cost of petroleum products in the country has unsettled most textile manufacturers.

He said: “The prices of both LPFO and gas increase by the day. While the price of LPFO had gone up astronomically, it is not available because the refineries are down. Increase in the price of gas had generated a lot of controversy.

“Now, it is a source of agitation between the marketers and users. This had attracted the attention of Minister of State for Petroleum Resources and Senate Committee on gas. This issue is yet to be solved.”

Specifically, Jaiyeola advocated 50 percent cost reduction in the manufacturer’s consumption of petroleum products.

He further urged governments’ parastatals and agencies to give voice to the on going campaign for patronage of made-in-Nigeria products.

Source: http://www.news.dailytrust.com/index.php?option=com_content&view=article&id=13975:nigeria-loses-325m-to-smuggled-textiles&catid=26:business&Itemid=153

I have seen the prints that come out of Nigeria. I will not even touch them. Maybe they have improved significantly but I doubt it since we are talking about Nigeria. It is against the law to bring any kind of fabric to sell in Nigeria but all the politicians wives have the recent most expensive laces. Puhlese. Leave people alone

im suprised

is it everything that must be made in china

nigeria has some beautiful fabrics and awesome styles!!

we just need top designers to make them practical for everyday

and role models like me

to show people how to appreciate

this is part of the reason why the economy is soo bad!!

It's the same thing. I have seen our prints made in Nigeria and I am sorry to say the quality from Akosombo is so much better. They simply need to step up. They cannot force people to wear that crap.

hmmm

i dunno the ones u see

when i go to naija i stock up on the clothes

i think they are amazing

i luv the tye and dye

its prob one of the onli things i luv abt the country sef!

I have not actually bought any tie and dyes. I might send someone to get me a few. My boys have outgrown the outfits my dad made for them