Reviving the textile industry

For the 4,000 workforce, the closure of the 43-years-old United Nigerian Textiles Limited (UNTL), Kaduna, was seen as the final death knell on the textile sub-sectors of the Nigerian economy.

UNTL is famed for its ability to survive having managed to remain in business in spite of the turbulent times that enveloped the textile sector for many years. Before its closure, the company produced at 30% installed capacity as many of the workers were sent away on compulsory leave. Some 200 other textile companies in the country have suffered similar fate in the past. Analysts say that the textile sector had played significant role in the economy of the country.

The Government has now placed a ban on imported fabrics. The Government has also directed that all para-military services must source their uniforms from Nigerian textiles. To enforce compliance, the Government ordered raids on warehouses to seize contraband textile goods. Early in 2006, the Government initiated a N70 billion credit facility for revamping of textile industries.

The Federal Government has resolved to revive the ailing textile industry, said Minister of State for Commerce and Industry, Ahmed Garba Bichi.

The Minister, while visiting the United Nigeria Textile Plc Kaduna (UNT) stated that Small and Medium Enterprises Agency of Nigeria and the Bank of Industry are mobilized to revive the textile industry of Nigeria.

Assistant General Manager Industrial Relations UNT, Senator Walid Jibril informed the Minister with the number of problems ranging from erratic supply of electricity, unfavourable Government policies and fake products, insufficient supply of Black Oil (LPFO) to unfair competition between locally manufactured and smuggled fabrics led to the collapse and eventually the closure of textile companies.

Following the situation, the Minister was sad that the only surviving major textile manufacturing company in Kaduna had to be closed down due to high cost of production and maintenance of equipment and machineries. However, it would be impossible for the Government to achieve the set goal of 13% growth rate in the present development without reviving and sustaining the textile industry.