Another promise to revive ailing textile sector

The move by the Federal Government to revive the moribund textile and cotton industry in Nigeria is ordinarily a step in the right direction, especially now that Nigerians need jobs. Unfortunately, government officials have over the past years, mouthed similar promises without following up with concrete steps, thus portraying the current hope raised by Vice President Kashim Shettima, as perhaps another false alarm.

Beyond the rhetoric, the government must mobilise all hands on deck and embark on practical measures to fulfill the hope being raised, in the interest of the country and particularly the traumatised economy. This move must not be suffocated like the previous resuscitation drives of the past governments. Political will is needed to drive this through.

At a meeting with the International Cotton Advisory Committee (ICAC), the Federal Government, led by Vice President Shettima, expressed the readiness of Nigeria to collaborate and ensure that the sector breaths again.

Deliberations from the meeting revealed that from the cotton/textile sector, the target is to create over 1.4 million jobs yearly with a focus on developing key components of the cotton value chain comprising farming, weaving, ginning and linking of cotton, all in line with the industrialisation drive of the President Bola Tinubu government.

Before this new commitment, Nigeria has made some efforts at reviving the textile industry but a lot still needs to be done. The textile industry is a viable sector that can provide millions of jobs for Nigerians. It also can create thousands of jobs for individuals involved in direct and indirect businesses along the value chain. It is a sector that can boost the nation’s quest for industrialisation.

Checks showed that in the 1980s and 1990s, Nigeria had, unarguably, one of Africa’s largest textile industries with over 180 textile mills functioning optimally, employing close to over 450,000 workers and contributing over 25 per cent of the workforce in the manufacturing sector. But that is now history as there is practically no textile industry in the country any longer.

This sudden decline shows that there is a need for both the federal and state governments to go to the drawing board, invest more in the textile industry and ensure that such investments are well-managed. There must also be private-sector collaboration. This is the more reason the ICAC visit and collaboration on the part of the Federal Government is a welcome development.

The Executive Director of the ICAC, Eric Trachtenberg, had expressed excitement about the prospects of Nigeria’s cotton industry, citing a “compelling historical moment” for growth and development. He noted that Nigeria has low-cost labour, market access to the African Growth and Opportunity Act (AGOA) and Economic Partnership Agreements with the EU, and a talented workforce.

Trachtenberg emphasised ICAC’s commitment to supporting Nigeria achieve its goals of creating quality jobs, generating foreign exchange and re-imagining the global cotton economy.

Governor Babajide Sanwo-Olu of Lagos, who was also at the meeting, said the state was well positioned to harness opportunities in the cotton value chain, given that it hosts the factories, and the market and is a critical component of the business ecosystem for the cotton sub-sector.

According to him, Lagos, as an integral part of the cotton value chain in Nigeria, would support every effort by stakeholders to revamp the sector to enable the state to sustain its status as the largest fashion hub on the continent.

The capacity of the textile industry in Nigeria has markedly diminished. The sector, which held so much promise as the bulwark of industrialisation, high revenue earner and a major employer of labour is presently a shadow of itself. This is particularly evidenced in several industrial estates, especially in Lagos, becoming moribund. These complexes and warehouses have been sold to churches and others turned into some sundry uneconomic ventures. The consequence of this is that so many people have been sent back into the already ballooning job market, with the corresponding high poverty index.

The textile industry has become the victim of the failure of the state to create a competitive economy, create employment, pay living wages to workers and cater to the welfare of the citizens such that their economic status will be enhanced relative to the wealth of the country.

Except urgent measures are taken, the economy is sliding dangerously down the cliff and the social implications of this level of penury is the progressive push of the internal conflict triggers to a combustible level. The August 1, 2024 #EndBadGovernance protest should warn the government to tackle youth unemployment more seriously. China and India used their processed cotton materials to compete favourably in the international marketplace, and nothing is stopping Nigeria from replicating the same, with the right commitment.

Sadly, Nigeria’s textile industry lost steam due to the import substitution policies of various administrations that promoted preference for cheaper, highly subsidised imported brands. Nigerian companies that were doing very well in the sector could not survive foreign competition.

Painfully, even when the United States of America put in place the AGOA, a piece of legislation that was approved by that country’s legislature, The Congress, in May 2000, Nigeria could not partake in the benefits of that legislation the purpose of which was to assist the economies of sub-Saharan Africa and to improve economic relations between the United States and the region. One of the key components of AGOA was the expansion of market access for textile and apparel goods into the United States.

But with ICAC recognising the importance of AGOA and ready to bridge foreseeable gaps, the Federal Government should back the move and clamp down on smuggling that operators say accounts for 80 per cent of the local market in defiance of a ban and import restrictions. There should be incentives for players in that sub-sector.

Nigeria’s investment climate should be conducive with attendant tax waivers, good roads, security and a stable power supply. There is a need to push the ‘Nigerianess’ agenda and the Federal Government should lead the patronise ‘Made-in-Nigeria’ goods campaign.

There should also be adequate training for those involved in the production process on modern practices. The use of cutting-edge technologies will be critical in reviving the sector.