By Franklin Alli
My tenure coincided with the tenure of three Presidents, four Finance Ministers, Four Ministers of Commerce & Industry and four Comptroller Generals of Customs . . .  consistency of policy for at least 15 to 20 years is critical to economic takes off and sustained growth,” Former MAN President, Alhaji Bashir Borodo.

Barley three months after Borodo uttered those words during Manufacturers Association of Nigeria 38th annual general meeting, stakeholders in the industrial sector were awakened to a morning of “yet another policy somersault.”

To their chagrin, breaking news reported that the Federal Government’s lifted the seven year’s ban on some items, like textiles, furniture and cassava from the list of prohibited items.

The decision was contained in a circular issued by the Minister of Finance, Mr. Olusegun Aganga, to the Comptroller-General, Nigeria Customs Service. The government also approved an import duty rate tariffs of between 10 percent and 20 percent.

In a swift reaction, the National Union of Textile and Garment and Tailoring Workers of Nigeria,(NUTGTWN), said that wholesale import policy undermines local manufacturing firms.

The Union’s General Secretary, Comrade Issa Aremu, observed that Nigeria is already a dumping ground for all manner of imported goods, including ammunition packaged as industrial goods.

“For government to approve the lifting of the ban is to further give legitimacy to criminal smuggling.
Coming at the time everybody has been so excited about the good work the current administration is doing to revive the textile industry, ban lift is a policy spanner thrown into the wheels of revival of industries in general.”

“Import kills local industry and poses serious threat to the national economy,” said Aremu
Similarly, the Director-General, Nigerian Textile Manufacturers Association, Mr. Jayeola Olanrewaju described the ban lifting as a set-back to government‘s efforts to revive the ailing textile sector.

“We cannot compete with imported textiles under the current business environment.
“If within one year the market is saturated with imported textiles, local industries will have problems selling and many of them will certainly close down,”he said.

He foresees that the lifting of the ban placed on the importation of textile materials may threaten the repayment of loans taken under the Textile Cotton Revival Fund.

According to him, the loan beneficiaries are being exposed to unfair competition through unbridled importation of textile materials. “The N100bn revival fund from which textile manufacturers borrowed to revitalise their operations, may be difficult to repay,” he said.

The General Manager, Haffar Industrial Company Limited, Mr. Michael Adebayo, said the development was not in the interest of the nation‘s economy, adding that it negated every aspect of what the government preaches.

Adebayo recalled that stakeholders only proposed lifting of ban on some fabrics, like lace materials and guinea brocade that could not be produced locally. “We were taken aback that government did not take the advice and instead went ahead to lift the ban,” he said.

Furniture and Allied Product Manufacturers Association of Nigerian (FAPMAN) also joined in thew wailing over the lifting of the ban on furniture products.

According to Mr Segun Adetiba, President FAPMAN, imported furniture should remained ban so that members of the association can enjoy what they have invested in the business.

He noted that the decision of the federal government to lift ban at this time may have far reaching negative consequences on the local manufacturers, as most local manufacturers will be forced to abandon production and start importation which will cause 1.23 million  job loss, aggravate unemployment and criminal activities and insecurity of lives and property, total strangulation of the local market as patronage for locally made products may decline.

However, in the words of the Minister of Commerce and Industry, Senator Jubril Martins-Kuye, the new policy was devised to stem loss of revenue to government through smuggling activities at the country’s borders.

“The reality on ground has informed government to streamlined policy on importation of goods on what operate in Benin republic, Togo and Ghana which would yield more revenue to government. We are not surrendering to the will and wish of World Trade Organisation (WTO).   We are just doing what is right, proper and appropriate to our economy and for our People.”

The Minister posited that if government continues to put goods that cannot be produce locally on the ban lists, unpatriotic Nigerians will find way to circumvent the law and the goods will find their way into our various markets and homes.

“So Nigeria has lost on both sides. The new duty and levy of 35-40 per cent would enable Nigeria Customs to generate more revenue for government which would eventually spread to other sector of the economy,” said Martins-Kuye

Be that as it may be, the number of textile factories operating in the country is said to have declined to 25 from 124 (1996 statistic), while the number of workers in the industry has slumped to 24,000 from 130,000, what does the future hold for the industry under an opened door or liberalised market?  We shall have to wait and see.