'Blanket Ban of Yarn Importation Stifling Our Business'
By Crusoe Osagie
The Threaed, Embroidery and Carpet Manufacturers Association have cried out about the terminal effect, which the blanket ban of importation of all yarns is having on their companies.
According to the associations spokes person Mrs Nana Hauwa Raji, their companies are already at the brink of collapse following the prohibition of viscose fialment, High Tenancity Nylon yarn in the country.
A statement by Raji explained that these companies are already laying off staff as a result of underutilization of their production capacity by about 80 percent.
"The inclusion of the viscose filament and high tenancify Nylon Yarn to the Prohibition list was ill advised as they are not available locally," the statement said.
"The ban has adversely affected the users of this category of yarns such that about 10,000 workers were already retrenched and by the end of year 2003 and the figure is likely to double, if the government does not remove the two items from the banned list", the statement said.
This situation, it said, posed a serious threat to the existence of many of the companies with the multiplier effect on local weavers, tailors, fashion designers, producers of traditional clothing materials such as Aso Oke, Okene clothings Hausa embroidery, Kente of Ghana. Others to be affected are Carpet Manufacturers, foam, shoes and upholstery manufacturers.
Specifically, companies such as Haffar Industrial company, with about 800 workers retrenched over 100 workers this year, Coates West African Threads with about 600 workers retrenched over 300, while Nigerian
Branding Manufacturing company with about 300 workers retrenched about 100.
The statement said that the viscose filament and high tenacity nylon yarns were not available anywhere in Africa because '`they are derivatives from wood pulps and petrochemicals".
"Since the nation's petrochemical plants are not yet working, the ban on the category of yarns will definitely affect the production capacity of the companies", it said.
The producers therefore, appealed to the Federal Government to remove from the banned list the two items and put them under Approved Users Scheme (AUS).
This Scheme, it said would enable to the government monitor and control the influx of the products into the country, "until such a time that the items can be sourced locally."
Following the extension of Africa Growth and Opportunities Act AGOA 3 Act from 2008 to 2015 on July 13, and the passing of AGOA Visa for Nigeria, the Special Adviser to the President on AGOA, Mrs. Modupe Sasore promised yarn producers and weavers that a committee will set up to look into problems of yarns producers so as not to hinder the success AGOA.
She said that the textile producers needed to position themselves to take advantage of AGOA export to the U.S. market as well as other AGOA approved countries.
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