The Nation Newspaper

Tag: manufacturers

  • ‘Recession adversely affecting local tile manufacturers’

    The lingering economic recession is taking a serious toll on the tile manufacturing subsector as many operators continued to groan under the biting credit crunch.

    Speaking in an interview with The Nation recently, the CEO, NISPO Porcelain Company Limited, Mallinson Ukatu, stressed that the major challenge facing the tile industry is the soaring price of natural gas which is denominated in US dollars.

    NISPO Porcelain Company Limited is one of the subsidiaries of Mallinson and Partners Limited. The company is into porcelain tiles. Porcelain tiles are polished tiles of higher standards.

    While acknowledging the fact that most of the materials used in the production of tiles are being sourced locally, Ukatu however said the percentage being imported abroad is at huge cost.

    “It is not easy however to get these materials because of the issues of forex challenges. We also have to purchase spare parts to maintain the machinery. It requires forex to purchase these spare parts.”

    Expatiating, Ukatu said: “It was really tough getting forex to run some of the plants we have in the company. We were able to buy two black markets to finance some of our spare parts and raw materials because we couldn’t get it right waiting for three to four months to be able to get foreign exchange to do what we wanted. One of the serious issues we have been clamouring for is that gas purchase is being charged in dollar in Nigeria. It happens only in Nigeria. This happens because they check the cost of gas per cubic feet according to prevailing rate of foreign exchange. That has been the standard used.

    “There is no country where gas is charged on foreign exchange rate. If you want to charge it on a foreign rate, it should be based on what you are exporting. When there was devaluation of the naira, manufacturers were affected because if the official rate moves up to 400, the price of gas comes to 25 percent, many manufacturers will close down. We have been clamouring for this excess charge as manufacturers.”

    Besides, he said manufacturers bear more cost especially in forex compared to their counterparts in other productive sectors of the economy. “They charge the manufacturer in dollars which is usually in Central Bank of Nigeria (CBN) official rate then convert to Naira and tell the manufacturer to pay in naira. In other countries the percentage charged is according to what you are producing. The price increased by 59 percent when exchange rate moved from N197. The price increased immediately by 200 percent. So if you are paying N5million for gas, automatically you will pay N15million. If you are paying N20million, you have to be paying N45million.”

    The NISPO boss lamented that the company failed to achieve its target last year, attributed it to the lingering recession. “We didn’t achieve our growth projection last year, because the economy was in recession, forex was scarce and the purchasing power was very low. Electric power supply was a major challenge. We used natural gas to run the plant which implied that if you are running a tile factory, you must have uninterrupted power supply. Another factor which made the year very tough for us was the vandalism of gas pipelines in the Niger-Delta. This affected our projection and we hope that this year will be better.”

    Ukatu who acknowledged the concerted efforts of the Manufacturers Association of Nigeria (MAN) to address the gas shortage faced by manufacturers, said MAN has been doing so much in addressing the issue of gas cut offs in Agbara, Ota and other areas where most factories are situated.

    Thankfully, he said the company has since began to diversify its business to stem overdependence on forex. ”

    We are witnessing a lot of development coming up and realising that made in Nigeria goods is equally good I think it is something wonderful. We have some other products where people prefer made in Nigeria goods.”

    “We also have NISPO plastics. We produce plastics and household materials. We are hoping to go into production of pharmaceutical products. At Mallinson and partners, we are looking at going into production of different food items. We are into agro-farming already which is known as NISPO Agro Farms Limited.”

  • Ogun, manufacturers partner to boost infrastructure

    The governor of Ogun state, Ibikunle Amosun has called on manufacturers in the state to collaborate with government for infrastructural development.

    The governor made it known during the factory tour immediately after the launch of Familia and Papia, the two new tissue brands manufactured by Hayat Kimya.

    The launch of the new products coincided with the completion and launch of Hayat Kimya’s $100million ultra-modern factory in Agbara where all the three products will be manufactured for the Nigerian market as well as the West African and Central African markets.

    The Marketing Manager of Hayat Kimya Nigeria, Mrs. Roseline Abaraonye stated that in less than two years of Hayat Kimya’s presence in Nigeria, the company was able to attain the number two position in the diaper category with its flagship brand Molfix diapers.

    She attributed the success of the brand to the high and consistent quality of the product, the support of Hayat’s trade partners and the great Nigerian mums.

  • Creative adventure of local shoe manufacturers

    Creative adventure of local shoe manufacturers

    Consumers laud the ingenuity of local shoe manufacturers just as research has revealed the inferiority complex of most of the manufactures which they exhibit by putting foreign labels on locally produced wears.

    A visit to Balogun market, Lagos, Arena shopping complex Oshodi, Arai Arai market Aba, Ogbaette market, Enugu and even closer looks at shoe hawkers along the road reveal that local shoe manufacturers relish in putting foreign labels on shoes made locally.

    Sitting round a big work table at Arena Shopping complex Oshodi were about 10 men very busy working on foot wears all in various stages of completion. While some were tracing, cutting and filing the soles, others were measuring and shaping leather strips while some still were applying gum and tacking the foreign labels on.

    They were so busy and hardly looked up when our correspondent approached them. Observing them, one can see that there is division of labour amongst them. Watching them as they concentrate on their work, it was obvious they had a target to meet. They were all swiftly working with their hands without any visible machine on sight.

    Soon after, three smartly dressed men walked in, demanding to know if their sandals and slippers were ready. As one of the artisans handed them a nylon bag containing their foot wears, they pulled them out examining if they met their specifications. Drawing closer to have a closer look, our correspondent observed that the labels had the inscription, ‘DINI DINI shoes, made in Italy.’

    With a satisfied smile on their faces, one of them handed money to the shop manager, thanking him as they turned to leave. Hurriedly following them outside as they walked towards a clean Sports Utility Vehicle [SUV] our correspondent introduced herself and asked them why they prefer patronising local shoe manufacturers and if they were impressed with the work?

    One of them who entered behind the wheel of the SUV said that, the fact that he gets exactly the size, quality and design he wants and at a very good prize were enough reasons to patronise the shoe maker.

    “The quality of most Nigerian-made sandals are very high. I pay N3,000-N4,000 for each of the leather foot wears and the Italian equivalent will cost about N10,000-N15,000.” Adding that though he travels to Europe and the United States, that he has never contemplated buying sandals and slippers though he buys shoes.

    At the Balogun market, Lagos, the idea of attaching foreign label to local product is very common. Foreign labels are attached openly. At the Mandillas part of the market, tailors are seen very busy sewing both known and unknown foreign names to well tailored male clothings.

    Shoe manufacturers and also sellers, in the market also engage in the fraudulent practices. Andrew Okoli, a Shoe manufacturer in the market said they engage in the act because consumers have more confidence in Italian made foot wears and clothings.

    “If you confess to them that it is Aba-Made, they price it very low, so we devised this method of getting them to buy from us at a not to exorbitant price.”

    However, Mr. Thank God Injiman of Nwadiche Shoes Aba, called on local shoe buyers and marketers to have confidence in local manufactures by being proud of locally made goods. He condemned the use of foreign labels on Aba-made products which he attributed to inferiority complex and urged them to be proud of what they produce.

    “If we cannot be proud of our own products, then we are encouraging our Artisans and local manufacturers to use foreign labels on their products,” he noted.

    “I was surprised to hear a Senator confess in Abuja in one of the trade exhibitions I attended recently that he booked for some bags to be imported from China but a friend of his informed him that he could source those items in Aba, which he succeeded in getting but instead of being proud to say that the items were produced in Aba, he claimed that he sourced them from China, thereby depriving Aba and the country of the credit,” he lamented.

    Meanwhile a Lagos based, Mr. Ayotola Oluwaseun, has lauded the Aba made products adding that emphasis should be placed on improving the quality and consistency of the products.

    According to Oluwaseun, some of the artisans he interacted with produced very limited quantities because they did their productions manually and called for the procurements of machinery that would help them to be consistent at every point and to enable them improve on the quality of their products.

    “I am impressed with their products because it shows some level of craftsmanship, but emphasis should be placed on improving the quality and consistency of their products, which is a key part.”

    Oluwaseun also advised the artisans to create their own designs instead of copying the signatures of foreigners. “Let us make products that scream Nigeria so that when we take it to the outside world, they would see that the products are different.”

  • Meter manufacturers kick against malicious criticism

    Electricity Meter Manufacturing Association of Nigeria (EMMAN) has warned that it would no longer condone acts capable of undermining its position in the industry. Its Secretary, Mr. Muhideen Ibrahim, said the allegation levelled against the company by some distribution companies (DisCos) that it produces inferior meters compared to the ones imported from China and other countries, was not true.

    He said local meter manufacturers have suffered a lot in the hands of DisCos and their foreign partners, which publicly criticised them for producing substandard meters. Besides, the DisCos said EMMAN members did not manufacture the meters, that they only import accessories and assemble them.

    Ibrahim said: “Criticism is part of life. Without criticism, it would be difficult to improve on the quality of one’s product or services. But the criticism must be objective in order to achieve the goal intended. That is the area where meter manufacturers in Nigeria are having grouse with people that are criticising their product.

    “While it is true that there are producers of substandard products in the country, it would be hasty to generalise that all Nigerians are fake. In the meter manufacturing sub-sector of the industry, meters were produced in line with international standards. That is why the products are certified by duly recognised institutions before they were sold.’’

    Ibrahim also said some DisCos were buying the locally-made meters because they are good and can give them good results. “Why did DisCos keep buying our meters? If the meters are of lower quality, as some sections of the society are made to understand, they would have stopped since,” he added.

    He said the Federal Government licensed four companies to produce meters, adding that the firms have tried to improve capacity in recent times. The companies are MOMAS Nigeria Limited, UNISTAR Nigeria Limited, MOJEC Nigeria Limited, and EMCON Nigeria Limited, he said, stressing that MOMAS has the capacity to produce 50,000 meters monthly, while the other three firms produce between 20,000 to 30,000 meters a month.

    He lauded the Federal Government for its local content initiative, urging it to fulfill its promise of making Nigerians consume what they produce, in order to grow the economy.

    He said countries such as China, Korea, Germany, United States and others grew because they were able to improve on their production, urging Nigeria to follow their footsteps.

    Also the Chairman, MOMAS Nigeria Limited, Mr. Kola Balogun, said the sub-sector has what it takes to compete with their counterparts abroad. He said the firms were able to manufacture prepaid meters and smart meters, despite infrastructural deficiency in the country.

    He said DisCos were importing smart meters at a higher cost, adding that paying local producers of meters for services rendered to them has become a problem to electricity distributing companies.

    Balogun said: “The only snag or problem is that there is no infrastructure in place to do it. This is in the area of technology. Providing smart meters require a communication infrastructure, and that technology is not in place in Nigeria. Do we have the technology in place? No. When they say smart meters, they are talking about meters that provide a two-way communication. The communication takes place between the consumers and their meters.  You can sit in your office and know what is happening to your meters at home.”

  • BoI offers Aba manufacturers loan tips

    BoI offers Aba manufacturers loan tips

    The Bank of Industry (BoI) has offered tips to Aba-based manufacturers on ways to secure its facilities to expand their businesses.

    BoI’s Acting Managing Director Mr. Waheed Olagunju coordinated  the National Micro, Small and Medium Enterprise clinics for viable enterprises, organised by the Federal Government in collaboration with the Abia State Government.

    Vice President Yemi Osinbajo opened the event, which had various Federal Government agencies involved in economic development interacting with Aba traders with the aim of growing and supporting their businesses.

    Olagunju noted that to easily access a loan, a business owner must imbibe some cardinal virtues, such as character, capacity, and commitment. He added that skills, requisite knowledge, and responsibility are needed to ensure that the person is committed to the business.

    Identifying collateral as a major constraint to accessing loans by most businessmen, Olagunju noted that the government had taken steps to make businesses viable by providing relevant tips to break the barriers of difficulties faced by some in accessing loans.

    “The first aim starts with marketing, how do manufacturers market their businesses? Hence the government has been coming up with procurement policies that are in favour of Small and Medium Enterprises (SMEs),” he said.

    Noting that this had been done in other parts of the world, the BoI chief said: “We are evolving the same thing in Nigeria so that the government patronise MSMSEs so that what happened in the past do not happen again.”

    Olagunju, however, said there was the need for Nigerians to change their taste for foreign goods and consume what they produce rather than consuming what they do not produce. He said now that Nigeria has foreign exchange crunch, the country is being forced to leave  foreign goods the more.

    Abia State Governor Dr. Okezie Ikpeazu expressed happiness that the Federal Government has finally recognised Aba as the hub of manufacturing not only in Nigeria but also in sub-Saharan Africa.

    He enjoined Abia indigenes to freely interact with various government agencies at the two-day event, noting that it was held to make their doing business in the state easy.

    On his part, Nigerian Association of Small Scale Industrialists (NASSI) Director-General, Imo Anasonye, described the event as a welcome development, adding that it was a good start for the government’s diversification programme from the non-oil sector.

    “What is happening here is a good thing in the sense that Nigeria wants to rebrand economically, diversifying from oil to the real sector, which is the productive sector.

    “That the maiden edition of the MSMSE Clinic is happening in Aba is not by accident because Aba has been the cradle and home of craftsmanship in Africa. There is no product that can be made locally that is not made here”, Anasonye added.

  • MAN advocates 5% interest rate for manufacturers

    Manufacturers Association of Nigeria (MAN) has expressed its concern about the current state of interest rate in Nigeria.

    The association at the MAN annual media luncheon led by its president, Dr. Frank Jacobs Udemba in Lagos noted that one of its major targets in 2017 is advocacy for concessionary interest rate of five percent for manufacturers.

    He noted that the association has done it best on its advocacy on lowering the monetary policy rate, stressing that MAN would continued seeking for five percent interest rate for the manufacturers as high interest rate will not favour manufactures.

     He urged the Central Bank of Nigeria to take a drastic action about lowering interest rate for manufacturers, stressing that MAN members are not happy about it.

    He pointed out that MAN has been working with Ministry of Industry, Trade and Investment to make a total Content Act as a bill to the Senate.

    Speaking on foreign exchange, Udemba stated that unavailability of foreign exchange has forced most manufacturers to close shop or reduced their capacity. “Most of our members are depending on black market to source for foreign exchange for procurement of its raw material and machineries from abroad which will make us uncompetitive.

    “Periodically, we engaged government on the issues of patronage of made in Nigeria products. We have had forum on it and we’ve recorded success, today they are coming up with buy made in Nigeria policy.”

    He stated that the association has mandated the federal government not to sign the ECOWAS-EU Economic Partnership Agreement in its current form, while advocating for the reviewing of Export Expansion Grant (EEG) which has been in limbo since 2014.

    While speaking on 2017 focus, Udemba maintained that MAN in consonance with its mandate would pursue some strategic issues on the association’s advocacy radar.

    He tasked the government on general improvement in the business operating environment, calling for abolition of multiple taxation and unorthodox mode of collection and review of the CBN’s list of 41 items not valid for foreign exchange to enable manufacturers’ source critical raw materials that are not available locally.

  • CBN disburses $1.07b forex to 4,328 manufacturers

    CBN disburses $1.07b forex to 4,328 manufacturers

    •21 DMBs, mortgage, merchant banks involved

    The Central Bank of Nigeria (CBN) has disbursed $1.07 billion to 4,328 manufacturers, power and other real sector operators for the procurement of raw materials, plants and machinery, the foreign exchange (forex) utilisation report by apex bank has shown.

    The fund sourced from the CBN and sold to the beneficiaries at the official rate of about N305.5 to a dollar, was handled by commercial, merchants and non-interest banks using the interbank market.

    Playing prominently in the funding are FirstBank, Zenith Bank, Access Bank, Unity Bank, Union Bank, Wema Bank, and Sterling Bank. Others are Diamond Bank, GTBank, Fidelity Bank, Jaiz Bank and FBN Merchant Bank among others.

    The report, which was for November, listed some of the beneficiaries as Dana Motors, Dangote Industries, Eat N Go Limited, Flour Mills Nigeria, GX Foods Limited and PZ Cussons.

    Others are Indorama Eleme Petrochemicals Limited, Fidson Healthcare Limited, Okomu Oil Palm, MTN Nigeria Communications, Nestle Nigeria Plc, Nigerian Breweries Plc and Nigerian Bottling Company Limited among others.

    The funds were specifically used for the procurement of raw materials, plants and machinery as specified in the Letters of Credit (LCs) under which they were sourced, and in-line with the CBN-stipulated import approval list.

    The forex utilisation report was meant to promote transparency and accountability on the side of the lenders which act as a link between the regulator and the forex users.

    The CBN said providing forex to the manufacturers and other key players in the economy was meant to enable it keep its promise to strengthen the real sector of the economy by ensuring that 60 per cent of available forex are used to procure industrial inputs, such as raw materials, machine spare-parts, telecom equipment, plastic raw materials, agricultural machines and pre-payment meters, amongst others.

    The CBN has also expressed its commitment to ensuring that manufacturers of goods for which Nigeria does not enjoy comparative advantage, are able to get LCs to import the required materials for their businesses.

    The exercise, the CBN insists, would provide a new lease of life in the manufacturing sub-sector, and also boost industrial output and employment.

    The regulator said it will continue to support and facilitate hitch-free procurement of necessary industrial inputs to sustain productive activities in the manufacturing sector. The gesture, it said, buttresses its commitment to rejuvenate and sustain industrial activities and retention of jobs.

  • Nigerite urges manufacturers to conserve forex for economy

    Nigerite Limited has advised manufacturers to look inwards and build local capacities that would allow them to deploy local raw materials for their production and conserve foreign exchange (forex) for the economy.
    Managing Director, Nigerite Limited, Frank LE Bris, who gave the view at the Annual Distributors Appreciation Forum in Lagos, told manufacturers that given on ongoing forex scarcity, they should begin to look inwards in sourcing their raw materials.
    He said although not all the raw materials can be sourced locally, but companies should invest in research and development and look for close substitutes for their raw material needs.
    “Nigeria must encourage local content, get local manufacturers to set up companies and look inwards for sourcing local materials that Nigeria has the competitive and comparative advantage,” he said.LE Bris who spoke during the distributors’ award, said since the government is seeking ways to diversify its economic revenue base, the company would continue to support the present administration in its quest to achieve a diversified economy.
    He said the company’s 57 years history and a market share of about 30 per cent in Nigeria, has also played a vital role in creating employment opportunities for the nation’s teeming unemployed youths.
    On the distributors’ award that took place across three regions of Nigeria before the Lagos edition, the LE Bris said: “The event was an opportunity for us to appreciate our distributors and also discuss with distributors, the achievements in the past one year. We are also looking at getting feedbacks from them as per the challenges they face selling our products and how we can improve upon our services,” he said.
    According to the Nigerite Nigeria boss, the company is hoping to enhance its business relationship with distributors, promising to keep bringing more quality products and having some new innovations while also meeting their needs. “We are also going to be supporting them by organising trainings and seminars for them in order to help expand their business. We are also looking at creating sub-distributors for them, promoting their businesses generally.
    A distributor, Mrs. Margaret Opesanwo, praised the company’s drive in its distribution network, saying it has an excellent marketing and sales team that brings distributors up to speed about different ways to boost sales.
    For her, the award was an indication that distributors are doing very well with the company. She said although the profit margin is not much, the company is excellent at providing lots of encouragement and support and sometimes help us look for customers.
    “The company goes as far as to organise seminars, trainings for artisans. I have been to not less than four different seminars organised by the company to introduce the artisans to new innovations and products of the company. I will use this opportunity to tell the management to expand their distribution chain in order to get their products across every part of the country,” she concluded.
    Another distributor, Akeem Tijani, said his company has been dealing with Nigerite products for the past 46 years, adding that Nigerite had over the years built a brand worthy of emulation. For him, although the economy has been challenging, he praised Nigerite for its doggedness and commitment in producing quality products meeting the needs of consumers.
    “The distributors’ award is very important to the company and distributors, because we value the company as a whole. This event will give us the opportunity to share ideas, lay down our complaints and observations in the market while the company gives us feedback about what is happening on their end”, he said.
    “My company started with my father before I took over and it is one of Nigerite’s biggest distributors today as we deal strictly on its products. We all know the economic situation of the country, but we thank God because business has been good this year. We know businesses cannot be rosy all the time, but we hope that the economic year of 2017 will be better,” he added.

  • DisCos, manufacturers quarrel over meters

    Power distribution companies (DisCos) and indigenous manufacturers of meters are trading words over the  quality and quantity of meters produced.

    Some officials of Ikeja Electric (IE), Eko Electricity Distribution Companies (EKEDC) and Abuja Electricity Distribution Company (AEDC), who spoke to The Nation at a stakeholders’ forum, said the DisCos were not patronising local meters manufacturers because their products were of poor quality.

    The officials, who pleaded not to be mentioned, said meters imported from Europe and Asia were of better quality, adding that every organisation wants the best.

    Ikeja Electric Acting Chief Executive Officer Mr Anthony Youdewei said only a few meters were produced in the country.

    He said none of the firms approved by the Federal Government to manufacture meters could supply the needs of the market.

    He said: “After a thorough appraisal of the situation in the  electricity sector, we, at (Ikeja Electric), have realised that local manufactuters of meters are incapable of meeting the needs of power distribution firms. Though the companies are still producing meters, they supply smaller quantities to the market.’’

    He added that none of the meter companies has over 50,000 meters in stock.

    “If you visit the meter factories, you would see that none of them have 50,000 meters in stock. What they do is that they import materials, couple and sell them. The demand for meters, by DisCos, is huge, because they have millions of cusomters in their records,’’ he added.

    Electricity Meters Manufacturers Association of Nigeria(EMMAN) Secretary Mr Muhideen Ibrahim,  denied the allegations.

    He said the group comprised  five manufacturers, adding that each could supply at least 100,000 meters to the market.

    On quality, Ibrahim said DisCos, which bought meters from local manufactuters have never complained of poor quality.

    MEMCOL Nigeria Limited Managing Director Mr Kola Balogun also denied the allegation of lower production of meters, adding that a local manufacturer could produce over 100,000 meters, depending on demand.

    Balogun, whose firm manufactures meters, said MEMCOL has over 200,000 meters in stock, adding that the company produces pre-paid meters and smart meters.

    He said the meters were patronised by Ibadan, Abuja and Port Harcourt DisCos, because they meet international standards.

    ‘’Are we to talk of voltage? Are we to talk of smart technologies, which enable owners to have updates on the working of his/her meter, not minding the distance?’’ he asked.

  • Forex: Manufacturers hail CBN’s $660m grant

    Forex: Manufacturers hail CBN’s $660m grant

    Manufacturers have praised the Central Bank of Nigeria (CBN) for giving them $660 million to buy raw materials.  They said the fund would bring relief to some of them affected by the restrictions on the sourcing of foreign exchange (forex).

    Apapa branch Chairman of Manufacturers Association of Nigeria (MAN), Mr. Babatunde Odunayo said the cash was a welcome development.

    At the branch’s 45th Annual General Meeting (AGM) in Lagos, Odunayo said: “Manufacturers are glad to receive the news of the release by the CBN of $660m to manufacturers for the purchase of raw materials.”

    The theme was: “Economic recession and the future of manufacturing in Nigeria.”

    MAN President, Dr. Frank Udemba

    Jacobs, described the theme of the AGM as “topical”, noting that it captured the current economic realities. He said the fall in oil prices and its attendant constrictions   of national income as well as the reccession, which the country  slipped into calls for greater attention to the manufacturing sector.

    According to him, the sector has been instrumental to the survival of many economies that slipped into recession in the past, but unfortunately, the sector in Nigeria    is passing through several  challenges.

    The Minster of Industry, Trade and Investment, Dr. Okechukwu Enelamah, restated government’s committment to the growth of  manufacturing.

    “The sector is the most viable option towards our economic renaissance as a nation,” he said, adding that goverments  focus was to build an industrialised economy that is strongly based on locally available resources.

    Enelamah said the recent decision to allocate over 60 per cent of avaialble forex to manufacturers was a demonstration of government’s commitment to the growth of manufacturing. He expressed the belief that the situation in the sector will soon improve.

    In a bid to ease business activities and reduce the pressure on the parallel market, the CBN had on November 7, 2016, granted manufacturers in Nigeria access to over $660m forex through  the inter-bank forex market to source raw materials and spare partsfor their operations.The gesture was good news to manufacturers.

    However, in another development, manufacturers have lamented that that the N100 billion Cotton, Textile and Garment (CTG) Revival Fund set up by the Federal Government through the Bank of Industry (Bol) to bail out textile companies and promote the manufacturing has failed.

    Speaking with The Nation,   said that the intervention has failed to make any appreciable impact on the sector.

    He stated that the large-scale funding programme initiated by the government in 2010 has failed to revive the comatose sector because of unbridled importation of substandard textile materials from Asian countries, particularly China.

    Udemba said although there have been reports of Customs raiding textile markets in Kano where smuggled goods worth N315 billion were seized, the volume of smuggled textiles in Balogun Market in Lagos or Onitsha Market, for instance, remained high.

    The MAN boss, however, said the government could save indigenous textile manufacturers by allocating 10 per cent of the Textiles Development Levy to companies at single digit interest rate for Research & Development (R&D) and technology improvement. This, he said, will be in line with the government’s policy on textile development earlier agreed by stakeholders.

    Jacobs also called for the introduction of Cotton Marketing Board to ensure that manufacturers have preference over export, in addition to granting them unfettered access to forex to import raw materials and spare parts.

    He further urged the Federal Government to reduce the price of gas  and review the Central Bank of Nigeria (CBN) list of 41 items restricted access to forex. This, he said, is to remove raw materials component from the list and grant tax holidays to the textile companies.