The Nigerian Textile Manufacturers Association (NTMA) has urged the Federal Government to channel proceeds from Textile Development Levy to boost the competitiveness of the textile industry.

Mr Hamma Kwajaffa, Director-General of NTMA, said in Lagos that the accrual from the levy would bridge the infrastructure deficits that presently impeded the industry.

The Federal Government set aside 10 per cent import levy on imported fabrics to develop operations of local textile manufacturers.

The levy was to be collected on behalf of the government by the Nigerian Customs Service.

According to Kwajaffa, no textile manufacturers has accessed the 10 per cent import levy on textile materials since it was established in 1997.

“We are supposed to have 10 per cent of any fabric coming into the country as textile development levy. Till date, nothing has come to the coffers of textile manufacturers.

“The levy was to cushion the infrastructure decay that has impeded our competitiveness with other countries and boost the export of locally produced fabrics.

“Last year, about 4 billion dollars worth of fabrics was imported into the country. The development levy from this, just like others, we did not get.

“Now that all these proceeds are channeled into the Treasury Single Account (TSA), we are appealing to the government to establish it as a fund that would catalyse the activities of the industry.

“The accrual should be given to Bank of Industry (BoI) to keep on our behalf and charge small interest rate of, maybe one or two per cent, from our members.”

The director-general said the establishment of the fund would reduce the need for textile manufacturers to source finance from commercial banks at high interest rates.

He stressed that the fund would boost production, competitiveness, employment, GDP contribution and revitalise the textile industry.