Nigeria’s textile and Apparel Industry covers the entire clothing value chain, and has a strong potential grow due to availability of cotton, knowledge of the sector and the country’s large market-size represented by over 170 million inhabitants, who provide a natural market for textiles and apparels. Moreover, there is also the scope to export Nigerian textiles and apparels to other markets, especially to the USA under the African Growth and Opportunity Act (AGOA) The industry which started declining from 2003 has resulted in Nigeria spending over US $2 billion annually on imported goods. However, with the Federal Government Intervention Fund of one Hundred Billion Naira (N 100b) for the Cotton, Textile and Garment industry introduced in 2010, the sector has started picking up, Recent figures from the Manufacturers Association of Nigeria (MAN) revealed that the capacity utilization in the sector has increased tremendously from 29.10% in 2010 to 49.7% in 2011 and currently put at 50.2%.
The industry is dominated by foreigners, though it harbours various classes of players individual investors, partnerships and government involvement in the industry. Several bigger mills swathe all the sectors while some smaller mills survive by servicing and feeding the bigger players. Some of the players are from Hong, India, UK, China, Japan and even Colombia. However, the sector lacks the presence of garment making industry.
The policy is to stimulate and support sustainable value addition along the entire cotton, textile and garment value chain which will in turn create jobs and wealth for Nigerians, enable technology transfer, product up-gradation and diversification through innovation leading to an increase in exports and economic growth for the country. Furthermore, it is to improve the capacity of the production, marketing and competitiveness of the players across the entire value chain.
Nigerian’s Leather industry has only few large industrial manufacturers, and currently exports about US$600 million of leather products. The major leather players are located in Kano, Kaduna Industrial Clusters and Abia, Abia State. With the intervention fund, Federal Government is poised to support the existing players to expand their current levels of operation and Leading Foreign brands to set up manufacturing units in the country.
1. Ginning and scouring
2. Textiles (knitted garments, carpets, fabrics)
3. Wearable apparels
4. Leather and leather accessories, travel accessories
• Removal of tax on equipment and inputs: all investors who invest in the sector from 2015 to 2019 will be able to import inputs used in textile manufacturing (Plant & Machinery, spares dyes & chemical and packaging materials) duty and VAT free for a 2 year period.
• The Federal Government’s N100 billion cotton, Textile and Garment Development Scheme being managed by the Bank of Industry (BOI) to revitalize the CTG Industry along the entire value chain at an interest rate of 6% per annum with tenor up to 5years.
Other vital contact
The Honourable Minister
Federal Ministry of Industry, Trade and Investment
Old Federal Secretariat, Block H
P.M.B. 88, Garki, Abuja
Manufacturers Association of Nigeria
Obafemi Awolowo Street,
Ikeja, P.O.Box 3835, Marina, Lagos