The shocking recent closure of the United Nigeria Textile Limited (UNTL), Kaduna, that was established in 1965 marks the final collapse of our booming textile industry that was reputed to be the highest employer of people after the government.
With its closure, over 4000 workers have joined the growing army of the unemployed in the country with all the attendant socio-economic, political and psychological consequences.
The UNTL that was hitherto operating epileptically joined the mortuary of six other textiles in Kaduna State alone and several others in the country.
We are concerned about the systematic killing of the textile industry in the country largely due to Federal Government's retrogressive policies and nonchalance to the survival of an industry that is very critical to the economic growth and development of the nation. The factors that contributed immensely to the collapse of this industry include unchecked smuggling that flooded the country with cheap textile imports largely from China.
The failure by the Customs authorities to effectively combat smuggling resulted in partly making our local textiles uncompetitive with the imported Chinese textiles. Nigeria is reported to have been losing over one billion United States dollars revenue annually on illegal textile imports, evasion of customs duties and VAT of over 700 million naira. Secondly, the blind subscription to the World Trade Organisation (WTO) resulted in turning the country into a dumping ground of all manner of import products. Thirdly, the high cost of black oil (LPFO) and other production inputs makes production cost exorbitant and therefore uncompetitive. Other factors like cost of funds from banks and the hostile operating market all colluded to kill a very promising industry that is very crucial to the development of the nation.
Equally disturbing is the failure of the Federal Government to disburse the N70 billion fund set up to salvage the industry from collapse. It is very unfortunate that funds were trapped either by the snail speed wheel of bureaucracy or half-hearted implementation of the policy. This has led to the cheques issued to some manufacturers to bounce in the banks raising so many fears of the actual motives behind the issuance of the dud cheques. Because most of the collapsed textile industries are based in the North and the dud cheques were issued to Northern manufacturers, it is easy to suspect a deliberate anti-Northern policy from former President Obasanjo's administration.
In fact, equally worrisome is the seeming indifference of the Northern governors who have allowed the deliberate massacre of an industry that provided jobs to thousands of their people and other economic activities. The number of textile industries that were shut down and the number of people who lost their jobs in the North is quite alarming that could have made the governors to lead a demonstration in Abuja against the Federal Government's lukewarm attitude and conspiracy against the region.
This generation of Northern governors must embark on policies that will rejuvenate agriculture in the region, especially cash crops. They must generate sources of foreign exchange and other revenues in the region as alternative to depending on oil. They should never forget the insults that the region receives from the Niger Delta. The governors should also devise common policies to reinvigorate and protect their textile industries.
They should also accelerate the massive production of cotton as was the case during the colonial administration. The cotton revival programme should include the establishment of a Cotton Board so as to purchase raw materials. The Yar'Adua administration must take special interest in the revival of the cotton and textile industry in this country in order to revitalise the economy and make it less dependent on oil. And equally important, the Customs and Excise sector should be made to do their duties of combating smuggling. Smuggling of textiles must be made unattractive in this country if our local industries will ever develop.
The customs must not only make our borders very tight, they should also be raiding our markets to seize imported textile products. Above all, the government must place a total ban on textile imports as one of the strategies for protecting our industries. We also urge the EFCC in the discharge of its mandate against economic crimes to give more serious attention to smuggling as it was doing before. It should beam its searchlights against smuggling and smugglers that are doing a lot of damage to the economy and the society. It should raid warehouses and seize imported textiles and round up smugglers for persecution.
Similarly, it is a well-known fact that all over the world, governments protect their industries against cheap foreign imports and other negative challenges. We see how even the United States, the chief protagonist of free trade, while embarking on policies against the WTO and other international conventions, has continued to give support to their farmers through all forms, types and manners of subsidies. Nigeria should therefore be no exception in protecting its own industries and other national interests.
The notion of unhindered free trade by third world countries, of which Nigeria is a leading member, is very unrealistic as they cannot favourably compete with the technologically-advanced countries. Nigeria must therefore be alive to its responsibilities to protect its infant industries to sustain its economic development and industrial growth. The bitter truth is that as long as we continue to allow our borders to be opened to imports of all sorts, especially textile products, so long will we remain dependent, a dumping ground, poor and a technologically-underdeveloped nation.
