Fidelity bank card banner Camano banner
Companies cry out over high cost of materials

By News Express on 29/10/2016

Views: 1,608

Textile companies in Nigeria have decried the increase in cost of raw materials, saying it, has affected the level of production.

In an interview with the News Agency of Nigeria (NAN) on Thursday in Abuja, some textile companies’ representatives said that the economic downturn in the country had negatively impacted on their production capacity.

Mr Sumit Saigal of Sun Flag Nigeria Limited, Lagos, said the company was not able to produce to capacity due to the high cost of raw materials.

The company, which has been in Nigeria for almost 60 years and has no fewer than 1,000 workforce, only produces Ankara fabrics which are 100 per cent made in Nigeria.

“Sun Flag Company has its farm in Futua, Kastina State, where it grows cotton which is transferred to Ikorodu in Lagos State for further processing.

“The basic challenges that we are facing include the high cost of electricity, travel costs, fuel costs and high cost of raw materials; these are our basic concerns.

“Due to the economic downturn, cost of raw materials has increased tremendously and patronage has declined.

“We grow our own cotton, which is used to produce top quality Ankara, here in Nigeria.

“We want to encourage Nigerians to embrace locally made products; it will help to revitalise the economy.

“I believe that Nigeria will soon bounce back from this recession and business will be back to normal.”

Mr Parvesh Aswani of Noel Carpets and Rugs, based in Lagos, said high cost of electricity was the main impediment to the company’s capacity to produce optimally.

Aswani said that the company had been in Nigeria for 30 years with a workforce of about 5,000 and thanked Nigerians for embracing the company products.

He also said that the company’s products were 100 per cent manufactured in Nigeria although some raw materials were sourced from various other countries.

“We source our raw materials from various countries, including Nigeria to ensure that the quality of our products meet international standard and we have the capacity to customarise high quality carpets and rugs.

“We also export our products to many countries including Ghana, Senegal and the U.S, but due to the high cost of generating electricity, we are just managing to supply six African countries now.

“Due to the economic situation, we are facing a lot of challenges in importing raw materials due to high foreign exchange rate.

“We are hopeful that the recession will end soon so that businesses can grow and Nigeria’s economy can improve.” (NAN)

•Photo shows Trade and Investment Minister Okechukwu Enelamah.

Source News Express

Posted 29/10/2016 05:30:53 AM





You may also like...
Unmasking Oseloka Obaze

10 issues to shape Africa’s energy in 2019...

13-year-old girl raped by 8 men pregnant with...

Rivers: Of Amaechi’s helicopters and controversial salary deductions...

Insurgency: Buhari approves the establishment of naval command...

21 years old marriage crashes as Pastor sacks...

Oyo govt. declares 3-day mourning for late Speaker...

Pictured: Obama’s wife throws weight behind #BringBackOurGirls campaign...

NLNG loses over $355 million to illegal blockade...

Guber Polls: APC youths reveal why party failed...

2019: Plateau business mogul and guber aspirant is...

How to wipe out unemployment —Prof. Utomi


Latest News Angry man destroys cars at Nigerian High Commission in London over passport Protest as land grabbers sack Ogun villages, install traditional ruler Woman who wanted $1m fake notes defrauded N700,000 Election Tribunal: Obi raises hope of victory •Says INEC must provide server used for polls China opens door to more Nigerians, promises to facilitate visa issuance 5 feared dead, several injured as hoodlums clash during Egungun festival in Ibadan Edo Assembly: Call Obaseki to order, members-elect tell Buhari We’ve broken monopoly of WAEC, says NECO Boss Imo Assembly to begin recovery of ‘stolen’ govt property Foreign Direct Investment into Nigeria has not dropped — CBN Brain disease kills 97 Indian children, ‘heat curfew’ imposed Gov. Abiodun inaugurates committee to review Amosun’s last-minute promotion of Obas


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (494,583 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (425,561 views) Shameless Genevieve Nnaji exposes breasts in public (365,404 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (312,054 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (276,306 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (244,037 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (234,016 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (215,909 views) 10 cars more expensive than Jets (212,858 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (204,495 views) Lagos plane crash: Journalist releases victims’ names (184,561 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (183,888 views)


NNPC Financial reports February 2019

CBN banner advert

UBA Wise Savers Promo


Categories Advertorials (3) African Press Organisation (81) Art & Literature (93) Business & Economy (4,312) Business Verdict (73) Columnists (1,051) Complaints & Requests (95) Enterprise & Opportunities (209) Entertainment (623) Features (761) Global Business Monitor (379) ICT Monitor (53) International (3,598) Interview (184) Live Commentary (30) Love Matters (162) Maggie's Blog (302) News (47,456) Opinion (1,260) Pidgin (17) Politics (11,032) Religion (1,023) Sports (2,044) Stock Watch (39) AMA & Al Jazeera Global Update






APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera