How Nigeria misplaced its textile market to Chinese imports – DW – 03/21/2025 | EUROtoday

In the Nineties, Nigeria’s textile business was a key driver of the financial system, offering employment to tons of of 1000’s in Africa’s most populous nation.

“it was full of activities, from Kaduna, Kano, Lagos and Onitsha, Textile factories were located in all thousand places,” says to Ali kwajaffa, the pinnacle of nigerian textile producers affiliation (NTMA).

Textile mills throughout the nation produced high-quality materials for Nigerian consumers in addition to worldwide markets. Booming manufacturing chains additionally supported native cotton farmers.

Today, nevertheless, just a few factories stay, and even these are struggling amid the inflow of low-cost textiles from overseas — notably from China.

Why are Chinese materials a lot cheaper?

Nigeria nonetheless boasts home cotton farms. However, its textile producers want to obtain dye, chemical substances, starch and artificial fibers from different nations.

In distinction, China’s textile business advantages from an built-in provide chain, the place all the required items and even equipment can be found domestically.

“China already produces all the raw materials,” says Anibe Achimugu, president of the National Cotton Association of Nigeria (NACOTAN). “This means they can produce at a cheaper price.”

Another impediment for Nigeria’s textile business is the depreciation of the nation’s forex, naira. In 2023, Nigeria’s President Bola Ahmed Tinubu ended measures that saved the naira at a hard and fast worth and as a substitute let the worth be decided by provide and demand for overseas alternate. The forex has since dropped, driving up the price of importing uncooked supplies and spare elements.

Are Chinese rivals copying Nigerian designs?

NTMA’s Hamma Ali Kwajaffa factors out that imported textiles are sometimes made from polyester moderately than cotton. Polyester is cheaper however can be thought-about decrease in high quality.

According to Kwajaffa, imported textiles usually fade shortly and don’t final so long as cotton materials. However, as a result of a number of the overseas materials mimic Nigerian-made designs, shoppers could mistakenly attribute them to native producers. Also, garments smuggled from China are typically illegally marked as “Made in Nigeria” and bought at decrease costs, he mentioned.

“Because of the cheap price, local people will prefer to get it irrespective of the damage to the skin and the way the color will wash within 2-3 days,” Kwajaffa advised DW. “Those counterfeit ones, they come in, they wash easily, and they blame it on Nigerian-made because they are buying the same design.”

Only handful of textile mills remaining in Nigeria

In 1997, the Nigerian authorities launched the Textile Development Fund Levy Policy, a ten% tax on imported textiles supposed to help native manufacturing.

More than twenty years later, Kwajaffa says this cash “has not reached the manufacturers.”

Without monetary help, native producers have continued to lose floor towards cheaper imports. The decline has resulted in tens of millions of individuals — textile staff, in addition to cotton farmers and merchants — shedding their jobs. Industry figures present that Nigeria as soon as had over 150 textile mills. Today, fewer than 4 stay in operation, in response to Achimugu.

The demand for regionally grown cotton continues to drop, and the decline of cotton farming “is very much visible in Nigeria.”

“The 2024-25 cotton farming season has been the worst I know,” Achimugu mentioned.

Nigeria drops out of ICAC as a result of unpaid dues

Nigeria was beforehand a member of the International Cotton Advisory Committee (ICAC), a corporation that gives analysis, market knowledge, and coverage suggestions to help the worldwide cotton business. However, Nigeria has not paid its membership dues for a number of years and is now not a part of the group.

Kwajaffa believes the declining state of the cotton, textile and garment (CTG) manufacturing has made it tough to maintain the prices of ICAC membership.

“We don’t make enough profit to pay the huge amount. The Nigerian government can also use the Textile Development Levy to defray the cost on our behalf,” he advised DW.

The lack of dependable electrical energy provide has additionally impacted textile manufacturing in Nigeria. Many producers depend on diesel turbines, which additional enhance manufacturing prices. This has made it even more durable for native producers to compete with nations like China the place energy provide is extra secure.

Will billions in loans assist textile producers?

Last summer time, the Nigerian authorities signed a deal to take out a mortgage of some $3.5 billion (€3.2 billion) with pan-African Afrexim Bank to revive the textile business. Yet, Kwajaffa stays skeptical. He says that ready for funds to reach is “like waiting for Godot,” as such strikes normally stall earlier than they’re applied.

Kwajaffa mentioned that representatives of the CTG sector haven’t seen the mortgage and haven’t any information of the federal government’s plans to make use of it.

The authorities “always brings up the issue of the budget, and that the budget is not properly financed. So, we are always at a loss,” he mentioned.

Edited by: Darko Lamel