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Nigerian industry seeks incentives to boost production

The textile and garment industry in Nigeria has been affected by the influx of cheap textile materials, inconsistent government policies and dumping of sub-standard textile materials in the country. The textile industry had about 170 mills in the 70s and 80s. Now it has come down to 34.

Smuggled goods come into the country without paying duty. Counterfeits and fake products pose a problem. Consumers take these to be Nigerian products while they are actually substandard products from Asia. Textile manufacturers say the challenge they face is not funding but the right to be able to compete globally.

Nigeria used to supply 18 per cent of the world’s requirement of cotton. Although the government has always promised to encourage local production, lack of an effective policy mechanism has hindered the actualisation of this intention. The textile industry feels sales would improve if it is allowed to make and sell defense and paramilitary uniforms.

The country has not really benefitted from the African Growth and Opportunity Act (AGOA). The purpose of the act was to give countries in sub Saharan Africa preferential trade access to the US market and as a catalyst for their economic growth. But freight and container charges through the Indian and the Pacific Oceans were too high for Nigerian entrepreneurs.

Trade.gov

 
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