Challenges of Exporting Nigerian Textile

Abstract

Availability of the major cost factors like raw materials and labor gives Nigeria a competitive edge to diversify and empower its economy as a major exporter of textiles. Despite its relevance to an industry that can deliver growing total exports, textiles do not form a major export category from Nigeria; rather, the industry which enjoyed an initial boom in the 1980s battles stagnation currently. This paper draws upon this premise to review the existing literature; it objects to investigate the challenges that plague the viability of the industry, by adopting an art historical method based on archival records, print, and electronic media. Findings reveal that domestic factors like depreciation of the Naira, inflation and high cost of financing ominously raise the cost of imported inputs, and affect the growth of the industry. Others like higher tariff levels compared to other traditional manufacturers and the average level of protection in the sector being higher than the overall average protection applied to trade in manufacturing pose as major export barriers. The study submits that to overcome the major challenges of exports, Nigeria has to develop a sequential strategy of boosting domestic sales, improve economies of scale and achieve a final price reduction for textiles to begin to gain some ground in global market share.