Humphrey Abah, minister of state for commerce and industry, made this call at the launch of “Campaign for Patronage of Made-In-Nigeria Products” for the South West zone in Lagos.
Abah disclosed that the ongoing campaign by the Federal Government was a strategic initiative aimed at boosting industrial production through the revival of ailing industrial concerns and thereby generating employment, creating wealth, reducing poverty and diversifying the foreign exchange earnings capacity of the nation.
But the Nigerian Textile Manufacturers Association (NTMA) has urged the Federal Government to take action on the continuous smuggling and faking of Nigerian made textiles as recent United Nation’s report revealed that Nigeria lost about N59 billion to smugglers in five years.
Smuggling, stakeholders say have led to the collapse of more textile industries in the country.
“It is good that government has embarked on made in Nigeria campaign but should ensure that the made-in-Nigeria campaign does not end as a campaign, but must be effectively enforced or implemented to reduce smuggling,” urged Paul Olarewaju, director general of the association.
Highlighting the problems faced in the sector in Lagos recently, Olarewaju stated that though there had been a general distress in the country’s manufacturing sector, but that of textile industry was more pronounced because it had always been a major player in the manufacturing sector of the economy.
“Although these problems had been presented to appropriate government agencies, we are gradually getting response from them as they have recently released over N10 billion from N100 billion revival fund for textile industry as some textile manufacturing firms have started to benefit from it,” Olarewaju disclosed.
UNIDO’s report at a stakeholders meeting revealed that the $1.3 billion (N234 billion) revenue accruable to the Federal Government from duties and taxes from imported textiles over $325 million (N59 billion) have been lost to smugglers, whose activities have been unchecked.
The director general further observed that smugglers now produce fake products of popular textile companies in the country. “In order to beat customs check at the border, most smugglers import fake made in China textile materials with the inscription of a Nigerian brand name.”
According to him, the textile industry has its unfair share of Nigerians’ penchant for foreign goods, smuggling, faking and counterfeiting of Nigerian made fabrics.
“It is important to stress the fact that Nigeria, as a member of the international community, cannot be insulated from the adverse consequences of the global economic crisis. These consequences are visible in our stock market, in government revenue arising from the fall of crude oil prices as well as in our manufacturing sector due to loss of thousands jobs.”