FG To Revive Textile Companies


The Federal Government planned to use the 20 percent levy on imported textile materials in revitalising dead textile companies, the Minister of Trade and Investment, Dr. Olusegun Aganga said.

The minister dropped the hint at a meeting with executives of the Nigerian Textile Manufacturers Association (NTMA) in Abuja on Sunday.

Aganga was responding to an NTMA request that the fund be ploughed back into the industry through the Bank of Industry as loan to textile manufacturers at three percent interest rate.

He said the levy was introduced to develop the productive capacity of the textile industries, given the great potential of the sector to create jobs and generate wealth.

“The idea behind the levy is that it will go back to the development of the textile sector. There are no two ways about it because that is what it is meant for.

“It is the responsibility of the government to create an enabling environment for our industries to flourish and the textile industry is one key area we are working with stakeholders to develop.

“The textile sector generates employment for Nigerians as well as revenue for government through taxes,” he said.

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“The development of industries remains the major mandate of the Ministry of Trade and Investment. We must diversify our economy by industrialising our country.

“And one of the areas we are focusing on in the next four years is the development of the textile sector as part of our industrialisation plan.”

He said that the ministry was working with stakeholders in the industry to address the problems militating against productivity in the sector.

The minister said he had held series of meetings with stakeholders in the sector and identified the problems in the sector.

“Textile industries are one of the areas we want to focus on. Apart from the fact that the sector is labour- intensive, Nigerians are very fashionable people.

“So, for a government that is serious about job creation, there is no how we can achieve this without focusing on the development of this important sector.”

Speaking earlier, the Director-General of NTMA, Mr. Jaiyeola Olarewaju, said the Federal Government’s textile intervention fund had significantly helped in reviving some of the dead textile companies.

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