Human Hair, Clothes Lead China’s ₦1.4 trillion Exports to Nigeria

Nigeria’s textile industry, once the largest employer of labour and a major contributor to the economy, is facing a severe crisis as imports from China continue to flood the market.

According to data from the General Administration of Customs of the People’s Republic of China, Nigeria imported textile products worth $1.95 billion from China in April 2023, while exporting only $150 million worth of commodities, resulting in a huge trade deficit.

The imported products include synthetic filament yarn woven cloth, insecticides, non-knit women’s outfits, cellphones, and false hair.

These products compete with the locally produced textiles, which are struggling to survive due to various challenges such as inadequate power supply, inconsistent government policies, rampant smuggling of foreign textiles, insecurity, and low patronage.

The textile industry in Nigeria has a long history and a rich cultural heritage. It dates back to the pre-colonial era when indigenous fabrics such as Aso-Oke, Akwete, and Adire were produced by local artisans using traditional methods.

The modern textile industry started in 1957 with the establishment of the Kaduna Textile Industry by the late Sarduana of Sokoto and former Premier of Northern Nigeria, Alhaji Sir Ahmadu Bello.

The industry grew rapidly in the 1970s and 1980s, with over 180 textile mills operating across the country and employing over 450,000 workers. The cotton, textile and garment (CTG) subsector accounted for over 25 percent of the manufacturing workforce and was the second largest employer after the public sector. The industry also contributed significantly to foreign exchange earnings and domestic revenue generation.

However, the industry began to decline in the 1990s due to various factors such as globalisation, liberalisation, devaluation of the naira, high cost of production, poor infrastructure, competition from cheap imports, and policy inconsistency. The industry was further hit by the ban on importation of textiles in the 1990s and the subsequent lifting of the ban after a few years to “promote competition”.

The Central Bank of Nigeria (CBN) has intervened in the industry since 2017 with various measures such as providing loans to cotton farmers and textile manufacturers, banning forex for textile importers, and restricting access to government contracts for foreign textile producers.

The CBN has claimed that it has spent over N120 billion in the CTG value chain and supported over 320,000 farmers between 2018 and 2020.

However, these interventions have not been able to address the root causes of the industry’s decline and have faced implementation challenges.

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