How Nigerian textile failed to tap into the $31bn US booming garment market
[2008-4-16]
When AGOA came into effect, many African countries saw a window of foreign exchange earning in the textile and garment section of the act and keyed into it. Many of such African countries now earn millions of dollars from garment and textile exports to the US annually.
Studies by the United Nations Industrial Development Organisation (UNIDO), indicated that the five best performing countries under AGOA exports in 2002 in Africa were: Lesotho with AGOA exports of US$ 322m; Mauritius - US$ 252m; South Africa - US$ 188m; Kenya - US$ 121; and Madagascar - US$ 90.
The UNIDO study of textile industries in Africa, Nigeria inclusive, further showed that AGOA has been the key driver for the development of garment industries in Africa in recent years through DPI. But the report stated that as at the time other African countries were reaping the benefit, Nigeria had not passed the AGOA Legislation and has not benefitted from the opportunity the act provided. More importantly, the report said that the textile industry was on the decline. The total export market size in the opportunity provided by AGOA is estimated at US$31 bn/year for which the country has so far failed to tap into.
Nigeria’s textile industry, according to studies, is almost a mono-product industry which can easily be attacked with the import of one product only (African prints). No participation in world production even after AGOA. There is practically no garment industry in the country as is the case in Egypt, South Africa and Kenya. As a result, there is no demand for fabrics from Nigerian textile industry other than African prints.
Findings from other African countries show that the garment industry in the AGOA countries has been mainly the creation of Asian foreign investors. Foreign investors by Asians brought not only the capital, but provided the training, the know-how and the knowledge of the marketing mechanism to the countries.
Studies by the United Nations Industrial Development Organisation (UNIDO), indicated that the five best performing countries under AGOA exports in 2002 in Africa were: Lesotho with AGOA exports of US$ 322m; Mauritius - US$ 252m; South Africa - US$ 188m; Kenya - US$ 121; and Madagascar - US$ 90.
The UNIDO study of textile industries in Africa, Nigeria inclusive, further showed that AGOA has been the key driver for the development of garment industries in Africa in recent years through DPI. But the report stated that as at the time other African countries were reaping the benefit, Nigeria had not passed the AGOA Legislation and has not benefitted from the opportunity the act provided. More importantly, the report said that the textile industry was on the decline. The total export market size in the opportunity provided by AGOA is estimated at US$31 bn/year for which the country has so far failed to tap into.
Nigeria’s textile industry, according to studies, is almost a mono-product industry which can easily be attacked with the import of one product only (African prints). No participation in world production even after AGOA. There is practically no garment industry in the country as is the case in Egypt, South Africa and Kenya. As a result, there is no demand for fabrics from Nigerian textile industry other than African prints.
Findings from other African countries show that the garment industry in the AGOA countries has been mainly the creation of Asian foreign investors. Foreign investors by Asians brought not only the capital, but provided the training, the know-how and the knowledge of the marketing mechanism to the countries.
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