LCCI Cries Out Over Continued FOREX Allocation Ban for Textile Products Import
• Says 500,000 jobs endangered
• Laments power issue for businesses
The Lagos Chamber of Commerce and Industry (LCCI) has cried out over the continued ban on allocation of foreign exchange for the importation of textile materials.
The Chamber which appealed to the Central Bank of Nigeria (CBN) for a review of the policy said over 500,000 jobs were being endangered.
The Director General of the Chamber, Muda Yusuf, in a statement said this has become necessary with the kind of opportunities being created by the textile industry.
According to him, the CBN forex policy has put the textile industry which he said is worth N5trillion in a big risk.
Part of the statement reads: “Trading in textiles is also a major economic activity in the country, both in the northern and southern part of the country. It is a market that responds to changing tastes and fashion trends in the country and beyond.
“Hundreds of thousands of women and men make a living in the marketing of textiles. The policy makers cannot afford to ignore this segment of economic players.
“The traders are the bridge between the producers and the consumers. It is therefore very important for policy makers to take into account the full ramifications of the consequences of policies and collateral outcomes.
“Today, Nigeria is clearly the leader in Africa as far as the fashion industry is concerned. Currently the range of fabrics produced by the Nigerian textile industry cannot support the fashion industry in terms of the quantity and quality. This vibrant industry should not be sacrificed on the altar of textile industry regeneration.”
The LCCI DG also said the federal government needs to address the power issue as the only way to strengthen the capacity of domestic industries and enhance their competitiveness.
“It is almost impossible to achieve rapid industrialisation without resolving the issue of power and the deficit in key infrastructures. Textile production is energy intensive. This is a high energy cost environment and it is very difficult for any energy intensive sector to survive.
“The textile industry has been a beneficiary of several fiscal incentives and protectionist measures over the years, yet it has remained in stagnation.
“Some of them have even gone into receivership as they could not repay their loans. The lesson is that we should deal with the fundamental issues of production competitiveness in our economy.
“The textile industry needs to be saved from the excruciating burden of high operating and production cost. Meanwhile, and in the spirit of the executive order of the President, all uniforms of military and paramilitary institutions should be made from Nigeria produced textiles. This is a low hanging fruit that could be explored while the issue of high production cost is being addressed.”
About Post Author
