Published On: Tue, Nov 22nd, 2016

Footwear sector kicks Nigeria economy when it’s down

ng textile industryLAGOS, (CAJ News) – NIGERIA is denied revenue inflows owing to the under-performing textile, apparel and footwear sector.

It remains the second largest contributor to the manufacturing sector, with a total output of N465 billion (US$1,5 billion) in the second quarter
of 2016 or 21,7 percent of manufacturing gross domestic product (GDP).

However, First Bank of Nigeria (FBN) Capital pointed out, the segment is still performing below its full potential.

Given the foreign exchange illiquidity in the country, manufacturers within the textile industry are increasingly having to confront the
possibility of suspending or halting production due to the inability to secure imported raw material such as chemical based products like polymer,
dyes and other synthetic materials.

Based on data from the National Union of Textile Garment and Tailoring Workers of Nigeria, collective production output from the textile industry
has not exceeded 55 percent of annual domestic consumption.

“This has resulted in the heavy inflow of imported textiles as well as garments,” FBN stated.

FBN said additionally, low productivity levels limitedexport capacity.

“We gather that Nigeria spends approximately N100 billion on imported clothes.”

The bank analysed that, as with other sectors of the economy, the textile industry could achieve its full potential only under a favourable business
climate such as policies that would encourage ease of doing business and drive private sector participation.

CAJ News

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