Nigerian Textile Manufacturers Association (NTMA),has set an ambitious target of 1.7-billion metre finished fabric production for the sector for 2019 as efforts to resuscitate the industry and increase its contribution to the nation’s gross domestic product get to higher gear.
The association President, Hamma Kwajaffa while speaking Monday in Lagos noted that the association also set a target to capture a short to long-term local market share of between 35 to 70 per cent in finished fabrics, and 100 per cent off take of locally produced raw cotton.
Consequently, the association now look forward to the government for the enablers like infrastructure support, fiscal incentives, financing, anti-smuggling and regulatory to be able to shore up its present 500 million metres per annum finished fabric production.
“VAT exemption on locally produced textiles for five years to improve competitiveness, and existing Common External Tariff (CET) policy should be sustained without individual based waivers.
“Plant and machinery should be exempted from customs duty and VAT for five years, zero duty on importation of dyestuff and chemicals, packaging materials and spare parts for textile industry for five years,” he said.
He advocated that gas pipelines be extended to the North considering the concentration of mills there, adding that low pour fuel oil (LPFO) should be supplied at concessionary price until gas pipelines were extended to the region.
Kwajaffa urged the government to harmonize power tariff for textile mills from DISCOs across the country and consider supply of power to textile manufacturers at globally competitive tariff of eight US cents per kilowatt.
The NTMA boss called for market assistance for garment producers to gain access and leverage the United States market under the African Growth and Opportunity Act (AGOA) and capacity building for textile industry operators.
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