The Minister of State, Industry, Trade and Investment, Aisha Abubakar has revealed that the federal government loses $325 million as revenue annually from importation of textile and garments.
The minister also added that the CTG sector is also one of the key sectors prioritized in the Economic Recovery and Growth Plan (ERGP) and the Nigerian Industrial Revolution Plan (NIRP) due to its strategic importance in employment generation, wealth creation and industrial development.
Speaking at the high-level stakeholders’ retreat on the Cotton, Textiles and Garments Policy yesterday in Abuja, Mrs. Abubakar, said the sector policy review is in tandem with the industrialization and diversification initiatives of the government to invest in agriculture and the manufacturing sector.
According to her, it is expected to be the major contributors to economic growth and development.
She said the vision for the cotton, textiles and garments industry is to achieve 15 per cent of national industrial production and 18 per cent share of the global textiles and garment market.
She said the sector is expected to contribute 5.5 per cent to the country’s GDP by year 2023 and achieved 15 per cent market penetration in the West Africa, Asia and Middle East region.
“It is create direct employment for approximately one million people by year 2023 and also achieve self a sufficiency and contribute 20% share in Nigeria’s total export earnings with Textiles and garments exports targeted to reach $2 billion by year 2025,” she said.
Also, the Permanent Secretary in the Ministry of Industry, Trade and Investment, Mr. Edet Sunday Akpan, explained that the National Cotton, Textile and Garment Policy Framework required a review due to seemingly unresolved challenges facing stakeholders.
Akpan who was represented by the Director Industrial Development Department, Adewole Bakare, also explained that the challenges facing the sector includes high cost of production, smuggling and counterfeiting of textile and garment products.
“Very low demand for cotton by domestic textile mills, tax concessions and waivers, rehabilitation of ginners, poor patronage of local textile and apparels among others,” he said.
