THE National Union of Textiles, Garments and Tailoring Workers of Nigeria, (NUTGTWN) on Monday advised the Federal Government to develop a sustainable fund through the Bank of Industry, to revive the textiles industry.
Mr Ismail Bello, Deputy General Secretary of the union, in an interview with the News Agency of Nigeria, (NAN) in Lagos, stressed the need for the release of a bailout fund for the textiles industry.
NAN recalls that in 2009, the late President Musa Yar’Adua released a N100 billion textiles and garments development fund, for the revival of Nigeria’s textiles industry.
In the 1980s, the sector with over 175 functioning textile mills, employed over 700,000 workers and was said to be the second highest employer of labour after the government.
According to Bello, the Cotton, Textiles and Garments industry needs between N500 billion and one trillion to function optimally.
He said that in spite of the N100 million bailout, the sector still faced various challenges that have made it difficult for it to achieve much progress.
“There is the issue of other charges and interest rates that go with the money received by the textile manufacturers. Government can reduce the interest rate to one or even zero per cent.’’
“Government knows that when industries are working, jobs are created and taxes are paid, there is multiplier effect in the economy, therefore, we need to go back there,’’ he said.
The union’s deputy general secretary also identified poor electricity supply as a challenge that has made the industry not to produce goods that could compete favourably in the market.
“Power remains critical for the growth of the industry.  Manufacturers generate 70 per cent of their power needs.
“They use diesel, gas and black oil as alternatives to electricity and these are all expensive.
“We, as a body has made several presentations to the electricity companies to supply gas to textile manufacturers at three dollars per cubic metre, as it is supplied to the Generation Companies.
“But the electricity companies insist on giving to manufacturers at 7.38 dollars per cubic metre. All this adds to the costs of production,’’ he said.
Bello said that if smuggling could be curbed to the barest minimum, local fabrics would be able to compete effectively in the market.
“The costs of electricity supply, bad roads, multiple taxes and administrative bottlenecks have contributed to increase in the prices of locally-made textiles, as against the smuggled ones,’’ he said.
The foreign exchange, Bello said, should be stabilised, to enable genuine importers to bring in raw materials for their businesses.
He advised the government to protect the local market, to ensure that ‘Made in Nigeria’ products are able to find some space in the market.