Business
Retooling, Major Setback To Textile Industry –NTMA
The Nigeria Textile Manufacturing Association (NTMA) has said that one of the major causes of the near collapse of Nigeria’s textile sub-sector is its failure to retool at a time it was crucial to do so.
Mr. Jaiyeola Olarewaju, the director general of the association said this failure made existing textile firms in Nigeria to produce with obsolete machines. Jaiyeola said there was also the problem of infrastructure which contributes majorly to the extinction of firms, especially as a deluge of competitive fabrics kept flooding the shores of the country.
He said as at today, that quality of fabrics produced in Nigeria could match the ones brought in from overseas, if only the local operating environment could be made a little bit friendly for textile companies.
“The Standard Organisation of Nigerian (SON) is there to ensure that Nigeria produced fabrics meet the required standard. The only advantage that foreign textile firms enjoy is pricing probably because they have a favourable environment to produce in”, Olarewaju said.
He said as a matter of fact, that some of the substandard fabrics coming into the country do not follow the normal routes.
According to him, policy inconsistency also negatively impacted on the sector, particularly the Export Enhancement Grant.
“When the Export Enhance Grant (EEG) was introduced, the government promised that it would subsist the life of the regime. Many of our members installed new machines to leverage on it, but under two years, the scheme was suspended and that is barely before they started production”, Jaiyeola said. According to him by the time a distorted EEG scheme came on stream two years after, many of the manufacturing companies had sort back the machinery they earlier acquired in anticipation.
On after policy consistency also, he cited the textile revival fund as an example saying three years of its inauguration, nothing tangible has come out of it; even after the operator received symbolic cheques.
He also criticized the government for unpatriotism, saying the government from time to time awards contracts on textiles, but does not bother where the materials are sourced from.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.