Home / Knowledge / News / Textiles / Chinese imports strangling Nigerian textile sector
Chinese imports strangling Nigerian textile sector
26
May '15
Nigeria’s textiles traders are a worried lot over the increasing Chinese footprint in the country. While the proliferation of Chinese-made textiles is a boon for low income consumers, traders in Kano, northern Nigeria’s biggest city and a centre of weaving and textile manufacturing dating back centuries, say such cheaper imports have been disastrous.

According to an agency report, factories have shut and trade in home-spun fabrics has dwindled, prompting calls for foreign investment within Nigeria rather than cheap, mass imports, as well as better regulation.

In the Kantin Kwari textile market — the largest in West Africa, the talk in the market is of unfair competition.

"The Chinese have effectively edged us out of business, leaving us with nothing but huge debts and heaps of goods in our shops," says Fatuhu Gambo who's business is one of many in dire straits. For the past two weeks he has not sold a single fabric in his shop

"The Chinese have taken over the importation and distribution of textiles in Kano and now they are into retail trading, which is putting our traders out of business," said traders' union head Liti Kulkul.

The troubles began a decade ago when Chinese textile merchants started the massive importation of textiles to Nigeria after Africa's most populous nation opened its doors to foreign trade.

The WTO deal gave the Chinese unfettered access to Nigeria's textile market, although Nigerian laws prohibit foreigners from retail trading. Traders talk of locals being recruited to conduct business on behalf of the Chinese in return for a cut of the profits.

The situation is just one aspect of the struggle facing Nigeria's crude-dependent economy, which has been hit hard by the slump in global oil prices since mid-2014. There is little domestic manufacturing to speak of, forcing goods from cars to foodstuffs to be imported.

"Our over-reliance on foreign products is hurting our economy and the only way to stop this trend is to tackle the problems in the manufacturing sector," said Sanusi, a former central bank governor.

Sa'idu Adhama, a former textile factory owner, said Nigerian traders cannot compete with their Chinese counterparts, who can get bank loans at single digit rates over a longer term.

"The Chinese are here legally, so we can't send them packing but we can regulate their trading," said Adhama, who studied in China in the 1970s.

That could include quotas, stricter enforcement of import regulations, duties and taxes as well as fuel subsidies to boost local manufacturing and help home-grown businesses, he added. Long-term investment in the power sector to stabilise the currently woeful electricity supply could also revive moribund factories, he said. (SH)

Fibre2fashion News Desk – India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Stefano Gallucci (left), CEO, Santex Rimar Group, and Tamer Hasbay, President, Has Group; Courtesy: Santex Rimar

Textiles | On 24th Jan 2017

Santex Rimar to market all Has products globally

Italy based Santex Rimar Group has signed an agreement with Turkey...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search