By Giwa SHILE
The Nigerian Textile Manufacturers Association (NTMA) has set a 1.7-billion metre finished fabric production sector target for 2019 to resuscitate the industry and increase its contribution to the nation’s gross domestic product.
Director-General of NTMA, Mr Hamma Kwajaffa, made the disclosure on Monday in Lagos.
He said the association also set a target to capture a short to long-term local market share of between 35 to 70 per cent in finished fabrics, and 100 per cent off take of locally produced raw cotton.
Kwajaffa said commensurate investments to achieve the set target would be generated, adding that idle production lines in existing factories would start operating toward boosting production and restoring the sector’s waning position.
According to him, enablers required from government to shore up its present 500 million metres per annum finished fabric production to its set targets are: infrastructure support, fiscal incentives, financing, anti-smuggling and regulatory.
“VAT exemption on locally produced textiles for five years to improve competitiveness, and existing Common External Tariff (CET) policy should be sustained without individual based waivers.
“Plant and machinery should be exempted from customs duty and VAT for five years, zero duty on importation of dyestuff and chemicals, packaging materials and spare parts for textile industry for five years,” he said.
He advocated that gas pipelines be extended to the North considering the concentration of mills there, adding that low pour fuel oil (LPFO) should be supplied at concessionary price until gas pipelines were extended to the region.
Kwajaffa urged government to harmonise power tariff for textile mills from DISCOs across the country and consider supply of power to textile manufacturers at globally competitive tariff of eight US cents per kilowatt.
The NTMA boss called for market assistance for garment producers to gain access and leverage the United States market under the African Growth and Opportunity Act (AGOA) and capacity building for textile industry operators.
He urged the government to enforce compliance with local sourcing of uniforms and other textile goods in line with Executive Order 3, and extant law should be made punitive to recognise smuggling as a criminal economic offence.
Kwajaffa noted that implementing this strategies would assist the industry create more employment, wealth and contribute to economic growth as it did in the past.
