Firm Says Nigeria Imports $6bn Worth of Textile from China, India Annually

Dike Onwuamaeze

The Chairman/Managing Director of Sunflag Nigeria Limited, Mr. Alok Bhardwaj, has stated that Nigeria imports $6 billion worth of textile fabrics annually from China and India to the detriment of  the sector in the country.

Sunflag, which is one of the two core textile fabric manufacturing companies that are still in operation in Nigeria, stated that this also leads to loss of hundreds of employment.

Bhardwaj spoke when the Minister of State for Industry, Senator John Enoh, visited selected industries operating in South-west Nigeria.

Speaking on the state of the textile industry, Bhardwaj said that it is a fact that between 1985 and 1995, Nigeria had 250,000 employees working with more than 250 textile companies that were producing textiles in the country.

He stated that today, there are barely 10,000 people working in the entire Nigerian textile industry, out of which Sunflag is employing 3,500. 

He said that the minister would be surprised to know that according to the official statistics of China and India, that officially export textiles to Nigeria is valued at $6 billion every year from the two Asian countries.

Bhardwaj added:  “If we can consume that volume of fabrics, there is no reason we cannot manufacture them ourselves. If we as a country cannot feed ourselves and cannot clothe ourselves what again can we do?”

The chairman of Sunflag said that one of the things that is required from the federal government to ensure the survival of the Nigerian textile industry is the creation of a level playing field.

He said: “What  is required is for us to create a level playing field. To give an idea of how much the volume is, over 300 containers cross our borders carrying only textile fabrics every single day. That will give you an idea about the kind of volume that is involved.

“Even if we reduce that by 10 per cent, it will have dramatic multiplier effects on the economy.  These are some of the issues I meant when I talk about level playing field because all these textiles that are coming in do not pay duties and Value Added Tax (VAT).

“But as a manufacturer in Nigeria, when we import our raw materials we pay our duties thus creating unfair business competition.” 

In his remarks, Enoh said that the purpose of the visit was to encourage the collaboration needed between the government and industry players in the country, adding that government had always had in place various forms of incentives that could lessen the challenge of doing business in Nigeria.

He said: “As the Minister of State for Industry, one of our programmes and activities is the push for patronage of ‘Made in Nigeria’ products and services. I am not here for show but for what the outcome of this visit can resolve in terms of policies and and their implementation to ensure the attainment of Mr. President’s item seven, which is promoting diversification of the economy through industrialisation.

“My visit is to assure industrialists that if there is a government that is able to change the situation, it is this government of President Bola Ahmed Tinubu. 

‘’But lots of work needs to be done. The government wants to set up an Industrial Revolution Work Group. The group shall comprise representatives of different sectors, including the Manufacturers Association of Nigeria (MAN) as part of the strategy to implement the eight-point agenda of the present administration in which industrialisation is one of them”.

Other industries that were visited in Lagos State yesterday by the minister included GB Foods Nigeria, Berger Paints Nigeria PLC and the Friesland Campina WAMCO Nigeria PLC.

The Managing Director of Berger Paints Nigeria Plc, Mrs. Alaba Fagun, told the minister that her company was facing significant challenges that required urgent government intervention to ensure a level playing field for local manufacturers.

Fagun said that the challenges include: the influx of imported finished products and proliferation of adulterated as well as substandard paints in the market, which threaten consumer safety and undermines reputable manufacturers. 

She said: “Imported paints, often subsidised in their countries of origin, continue to flood the Nigerian market, making it difficult for local manufacturers to compete. We propose an increase in import duties on finished paint products by at least 50 per cent to encourage patronage of locally made alternatives.”

She also said that Berger Paints’ products were finding it difficult to penetrate key sectors, including the multinational oil and gas industry, despite meeting rigorous standards.

“We seek your support in advocating for greater recognition of local manufacturers in critical industries and facilitating recommendations to the Nigerian Content Development and Monitoring Board (NCDMB),” she said.

Speaking in the same vein, the Managing Director of Friesland Campina WAMCO Plc, Mr. Roger Adou, told the minister that the company was the first to process Nigeria’s local milk into finished yogurt, Nunu.

But the company also said that product counterfeiting is one of the major challenges it is experiencing in the Nigerian market.