Textile company closure makes 4000 jobless

United Nigeria Textile (UNT), the only remaining textile industry operating in the state, has closed down making 4000 workers jobless. The company was operating even after all the other six textile industries in the state shut down. It was experiencing problems of unstable market environment as well as high cost of operation. The rising cost of sourcing for black oil (LPFO), an important input for production was the cause of closure.

The cost of funds from banks, activities of smugglers, fake textile goods being passed off as that of UNT, have made the company to record huge losses leading to the suspension of operations at the Kaduna Mill. The Federal is tried to combat the smuggled goods problem but the markets are still flooded with cheaper and inferior fabrics. It is not possible to pass on the rising production cost to consumers because of their week purchasing power. The company was recording huge losses and decided to suspend operations until the situation improves. Senator Walid Jibrim has called for a state of emergency to be declared in the textile industries to save the few remaining ones in the country from total collapse. He has advised the Government to make black oil available at low price and create a conductive atmosphere for textile production.