Nigeria loses $325m annually over 85 percent counterfeit Textile products in the country

By: Victor Ulasi, Nigeria

Textile Manufacturers Association (NTMA) has disclosed that Nigeria loses over $325 million annually because of evasion of customs duty and Value Added Tax (VAT) on smuggled textile materials into the country, as 85 percent of textiles in Nigeria are counterfeit.

The textile sector is beset with many infrastructural problems like power and road, which led the Federal Government of Nigeria to intervene with 100 billion naira revival funds for the textile industries as 85% to 90% of textile industries in Nigeria are all closed down.

The Chairman of Nigerian Textile Manufacturers Association (NTMA), Mr Abiodun Ogunkoya said about 85 percent of smuggled goods brought into the country worth $1.4 billion, also about 85 percent of the textiles being sold in Nigerian markets (especially printed textiles) are smuggled into the country.

“Wax print fabrics produced in China bear counterfeit trademarks of Nigeria manufacturers and fake SON markings printed on the labels and selvedge of the fabric. These fake products are found in all our major markets in Kano, Lagos, Onitsha, and Ibadan state, Nigeria.”
Speaking further, he said that the Federal Government of Nigeria must develop effective anti-smuggling system to protect the local industry and stop smuggling of textiles in the country.

According to NTMA, the N100 billion earmarked for the textile sector would be released to the Bank of Industry before the end of this year, also stressed that the fund would empower textile manufacturers in terms of retooling and providing for working capital.

Posted by worldnews on February 18, 2010. Filed under International Business News,International News. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.