Is Turkey saving the Nigerian textile industry?
Nigerian textile and apparel industry currently under performing amid the influx of cheaper fabrics from China and India with about 30 operational textile mills running at an average of 40 % of installed capacity, according to Nigeria financial think-tank, relations between Nigeria and Turkey could help revive the Nigerian textile and apparel industry.
Most manufacturers within the industry have cited the high cost of financing as a major hindrance.
According to National Bureau of Statistics, Nigeria spent Neira 24.7 billion (USD 130 million) on textile imports in the third quarter of last year, representing a 17 % decline.
The observation was made to coincide with Turkey President, Tayyip Erdogan, led a delegation from his country on a state visit to Nigeria.
FNB, the First Bank of Nigeria Capital said on March 3, 2016, that the textile industry is presently struggling, but measures have been put in place to revive.
They understand that government officials from Turkey are currently visiting Nigeria. Turkey is an important cotton producer and has a well-developed domestic textiles industry.
Textiles feature in the Central Bank of Nigeria’s circular of June 2015, specifying 41 import items for which foreign currency from official sources is not available.
In 2010 in order to encourage domestic production, government placed a ban on textile importation. However, this led to increased smuggling, FBN Capital noted. Smuggled imported textiles are said to account for over 85 % of fabrics sold locally.