20% Textile Import Charge, For Reinvestment in The Sector - Aganga

The Federal Government, in a bid to revive the indigenous textile industry, has concluded plans to set aside the 20 per cent levy charged on imported textile materials for the funding of the sector.

The Minister of Trade and Investment, Mr. Olusegun Aganga, confirmed the development during a meeting with top executives of the Nigerian Textile Manufacturers Association in Abuja.

The NTMA team was... led by its Director-General, Mr. Jaiyeola Olanrewaju, and the National President, Mr. Ibrahim Igomu.

Aganga said the 20 per cent import levy would be used by the government to revive all dead textile manufacturing industries across the country.

He said the idea behind the move was to develop the productive capacity of the textile industries across the country given the great potential of the sector to create jobs and generate wealth.

Aganga said, “The idea behind the levy is that it will go back to the development of the textile sector. So, 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 the government through taxes.”

“The development of industries remains the major mandate of the ministry. We must diversify our economy by industrialising our country, and one of the areas we are focusing on within the next four years is the development of the textile sector as part of our industrialisation plan,” he added.

The minister said his ministry was working with stakeholders in the textile industry to address the problems militating against increased productivity in the sector.

He said, “We are working closely with stakeholders in the sector towards achieving increased productivity. We have held meetings across the value chain in the textile sector and identified all the problems in the sector.

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

Speaking during the meeting, Olanrewaju said the intervention of the Federal Government through the Textile Intervention Fund had significantly assisted in reviving some of the dead textile companies.

He, however, urged the government to give additional incentives to the textile manufacturers to enable them increase their productivity and create more jobs for Nigerians.