FG to invest levy in local textile industries

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Nigerian Textiles

Nigerian Textiles

The Federal Government has said that it will plough back the 20 per cent levy charged on imported textile materials in the revitalization of the textile industries across the country.

Speaking in Abuja when the executives of Nigerian Textile Manufacturers Association (NTMA) visited him, the Minister of Trade and Investment, Olusegun Aganga said the levy would be given to Bank of Industry for on-lending to textile manufacturers at three per cent interest rate.

He said “the idea behind the levy is that it will go back to the development of the textile sector. There are no two ways about it because that is what it is meant for. It is the responsibility of the government to create an enabling environment for our industries to flourish and the textile industry is one key area we are working with stakeholders to develop. The textile sector generates employment for Nigerians as well as revenue for government through taxes.”

Chairman of the Nigerian Textile Manufacturers Association, Malam Ibrahim Ngomo said although the sector is gradually reviving, several of its members have gone underground due to myriad of problems facing the sector.

The Director General of the group, Mr. Jaiyeola Olarewaju had blamed government for the problems of the sector, saying that the lifting of ban on textile materials in 1997 led to the closure of about 80 percent companies within seven years.

Author: Business

In : Business

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