NNDC raises fresh hope on Kaduna textile industry
From Andrew Agbese & Christiana T. Alabi, Kaduna
Barely three months after the Nigeria Union of Textile and Garment Workers (NUTGW) appeared to have given up hope that the once thriving textile industry in Kaduna would bounce back to life and regain its lost glory, the New Nigeria Development Company (NNDC) has dangled what seems like a silver linen in the cloud.
Recounting their plight before newsmen, the textile workers had appealed desperately to the Kaduna State Government to take concrete steps towards reviving the comatose industry in Kaduna.
The deputy secretary-general of the NUTGW, Comrade Dele Ojo, who spoke the minds of the workers, said the terrible state of the textile sector had not only affected the country economically but has had deep negative sociological impact on the citizenry.
He said, “People are suffering, those displaced when the factories were closed are still in trouble. Even though we do not have the statistics on how many have lost their lives, we know the situation is such that everybody is concerned about the welfare of the people that were displaced as a result of the closure.”
Apart from the textile workers, many have also expressed concern over the loss of investments and other economic opportunities owing to the fact that the industry was shut down.
The New Nigeria Development Company, which stakeholders expressed similar concerns early last month, revealed its plan to bring not less than four different partners together in a deal it said would set the stage for the revival of the ailing industry.
The company entered into an agreement with a Turkish firm, Sur International, to revive the Kaduna textile industry.
The deal, unveiled by the NNDC, is for a project estimated at $15 million dollars for the production and supply of clothing for the armed forces.
The Group Managing Director of the NNDC, Alhaji Ahmed Isah Mohammed, received the Turkish delegation led by the chairman of textiles industry in Turkey, Mr. Orfay Ercar Porer.
Details of the deal show that the Federal Government would be the largest shareholder with 45per cent, Sur International Limited, 35per cent and the 19 northern states and the NNDC, 20per cent.
The Executive Director, Services of the NNDC, Alhaji Abdullahi Ali Gombe, who briefed the press, expressed hope that it would be a viable project.
He said the project would start with the production and supply of clothing for the armed forces, and overtime, produce other garments, with market segment to cover Nigeria and West Africa.
“We have been on it for a period of time now, and we hope to actualise it soon. Although we cannot say when this would take off, we are very optimistic that the project would take off very soon.
“This is a viable project; and we are hopeful that the economic activity this would generate would impact positively, not only on Kaduna State but the entire nation. We hope that when the industry is reactivated, there would be job opportunities for Nigerians,’’ he said.
But this will not be the first time the hope of the workers would be kindled as the Federal Government had made some interventions that raised the hope of the workers, only for it to be dashed.
During its heydays, Kaduna, as an industrial hub, had not less than 13 thriving textile manufacturing plants. They all had to shut down at one time or another, but the Federal Government, during the Obasanjo administration, intervened by providing a special fund for the industry, which was increased to N100billion from the initial N70 billion.
But apart from access to about N10 billion of the total funds, not much has happened in the industry as those who tried to resume production did not go beyond skeletal services.
According to Comrade Ojo, “The union has been doing a lot in terms of advocacy to draw government’s attention to the plight of the industry, and our campaign has made it possible for the United Nanotech Products Limited (UNTPL) to be reopened because of the provisions of the Bank of Industry (BOI), with a current workforce of about 1,500.”
He said there was hope that one of the companies, the Kaduna Textiles Limited (KTL), would be reopened, but that nothing has happened so far.
“We were told recently that the management had been able to woo some investors from Turkey who were interested in making military uniforms. We were told that they had gotten to the stage where investors had shown interest, and that they only needed the cooperation of the Ministry of Defence and Ministry of Interior to give them the go-ahead to float a garment factory there.
“These are very reassuring information, which we believe would help us get those factories to reopen, and if that happens, some of the works would be re-engaged, and the issue of payment of their entitlements may also come to bear,” he said.
Commenting on the new initiative on the KTL, the general secretary of the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGWN), Comrade Isa Aremu, commended the New Nigeria Development Company, under the chairmanship of Alhaji Bashir Mohammed Dalhatu (Walin Dutse).
He described as remarkable, the efforts of the Northern Governors Forum and the NNDC at reviving the investment legacy, 40 years after.
“Our union supports it because it will get many youths back to work. It is clearly feasible and we have a huge market for garments, notably, uniforms, either for the army, police or students,” he said.
He said Nigeria stood to benefit through foreign exchange savings, noting that the country spends huge forex on the importation of garments. “That will stop. Also, decent jobs will be created. When the KTL was in full production in the early 80s, it created 5,000 direct jobs. All these jobs would definitely come back. Best sustainable jobs are industrial jobs. So we believe that this would succeed. After all, the strong point of the President Buhari administration is revival of textile industry, so it must succeed,” he said.
He lamented that the textile industry faces poor electricity supply, smuggling and general high cost of production. He, however, noted that the Federal Ministry of Trade and Investment was already doing a commendable job to address the above problems.
The chairman of the Kaduna State chapter of the Textile Workers Association of Nigeria, Comrade Jeibe Wordam Sindik, described the development as a welcome one, saying that with the commitment and support of the northern governors, the initiative will succeed.
He said arrangements were on ground by the investors to pay the entitlements owed the old workers. “It is part of the liability of the company, and the investors have agreed to pay the unpaid textile workers,” he said.
He also disclosed that as part of the proposal, the investors promised to engage 25 to 30per cent of the old workforce, adding, however, that those with medical challenge or old age will not be considered.
He, therefore, called on the NNDC, the northern governors and the Board of Directors to hasten up the handover process of the Kaduna Textile Limited to the investors.
What became the Kaduna textile industry started in 1957 when the Northern Regional Government, led by Sir Ahmadu Bello, entered a business partnership with a British investor, David WaterHeed, whose firm provided the technical expertise for the setting up of the plant, and the Kaduna Textile Limited was established.