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Nigeria's textile industry struggling with rising production costs

The Nigerian textile industry is struggling with rising productions costs as business is getting tougher. Boko Haram insurgency too has affected textile firms’ production activities and supply chain. Mostly located in the northern part of the country, mainly in the Kaduna and Kano states, the impact of the Boko Haram rebellion is high in the Northeastern states of Adamawa, Borno, and Yobe. However, the supply of textile materials and products from Kaduna and Kano to the rest of the north has been limited. Besides, cotton farmers in several parts of the northern region of the country have fled, thus making access to raw material difficult for textile makers. Lack of support from domestic consumers and the government has also crippled the local textile and fabric makers.

The ongoing Common External Tariff (CET) too puts prices of these products at a disadvantage when compared to imported ones. Textile firms have accessed the CTG Fund from Bank of Industry (BoI), but they are struggling to pay back largely because of insecurity and tougher operating environment. Besides, the number of textile makers in the country has dipped from over 200 in the 1980s to around 10.

 
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