UNIDO decries collapse of Nigeria’s textile industry

The United Nations Industrial Development Organisation (UNIDO) yesterday, observed that Nigeria’s textile sector was rapidly shrinking with only few currently companies in operation. The observation was contained in a UNIDO Critical Situation Report on the Nigerian Textile Industry, made available to the News Agency of Nigeria (NAN) in Abuja.

UNIDO therefore, called for an urgent revival of the textiles industry to forestall its total collapse, as this would spell doom for the economy.

“Even the existing mills are operating at skeletal level and many of them are on the brink of closure,” it said.

The report pointed out that in 1985, about 175 textile companies operated in the country and by 2002, the number had reduced to 50.

In 2006, the number further depleted to 32 and in 2008, it reduced to 25.

“It is well known that textile is a labour intensive industry and was once the largest employer of labour after the Federal Government,” it said.

UNIDO stressed that with the closure of textiles mills in the last five years alone, 40,000 workers had lost their jobs.

According to the report, in 1996 the industry employed some 137,000 workers. By 2000, the workforce had shrunk to 83,000 and further declined to 24,000 in 2008.

It said that the sector had been hard hit by the energy crisis, which included scarcity and high cost of black oil, decline in power supply and sharp rise in diesel price.

Other factors that affect the sector, according to the report, include fiscal policy such as ban on importation of textiles and the inability of the Nigeria Customs Service to enforce it.

It also mentioned the high cost of funds and working capital for the industry, which had not been addressed, due to non-implementation of the N70 billion Textile Revival Fund.

UNIDO had partnered with the Federal and Abia State governments to set up a Common Facility Centre (CFC) in Aba to train garment producers for export.

The Guardian