This study focuses on the determination of the impact of Nigeria’s textiles import restriction. Specifically, the study describes the structure of the global and Nigeria’s textile industries as well as the global value chain, and the policy environment surrounding the industry in a global and national perspective. It was conducted in 2013 with support from FCDO (formerly DFID).
STUDY OF THE IMPACT OF NIGERIA’S TEXTILE IMPORT RESTRICTIONS
Associated resources
The Policy Development Facility Bridge program (PDF Bridge) held a Trade Policy Roundtable to discuss the findings and recommendations from its recent study titled “Diversification and Non-oil Export Opportunities for Nigerian States Post-Covid19”.
The objectives of the policy roundtable were;
- To provide a forum for relevant stakeholders to learn about and discuss the findings from the Export Diversification study;
- Through discussions, generate recommendations on necessary actionable steps towards reforms, process restructuring, elimination of various challenges identified in the study, and implementation of the study recommendations.
With the global COVID-19 pandemic came the need for local manufacturers to step up to the challenge and produce face masks, face shields, and PPEs due to dwindling supplies caused by high demand the world over. The support provided by government agencies to these entrepreneurs was critical, this in turn was derived from the technical advice supplied by the PDF Bridge programme under the Trade Policy Workstream through dialogues, studies, and roundtable events. The workstream focuses on non-oil exports by bringing underrepresented voices into economic policy and strengthening the participation of exporter groups in trade. The workstream engaged with representatives of Abia State Government during its dialogues particularly with the Director-General of the Abia State Marketing and Quality Management Agency (ASMQMA). This engagement led to increased capacity and redirection of strategy for the Aba Textile cluster in the production and distribution of finished goods. With help from the State Government’s agency on quality and standardization, Abia State Marketing and Quality Management Agency (ASMQMA), tailors generated an estimated $4-5million for the Nigerian economy from Abia State alone from the production of PPEs. This created a 110% increase in tailoring personnel.
Africa’s contribution to global trade in services is little with slow growth despite rapid globalisation and liberalisation. The continent’s intra – African trade in services is also relatively little. Nigeria’s services sector contribution to its GDP is huge, representing 55.8 per cent in 2017. It recorded a growth rate of 1.83percent in 2018. Hence, the services sector possesses the immense potential to promote diversification, employment, and growth, even without a current holistic services sector policy. This study specifically mapped and profiled key services sectors; reviewed domestic regulations relating to services; estimated the current and future potentials for export, and provided associated recommendations.
Trade Associations play a role in promoting appropriate policies, regulations, and necessary reforms relating to their sector of operations. They create opportunities for networking and consultations among industry players as well as being a voice when it comes to new regulations and legislations while encouraging best practices among its members. According to Peter Gomersall[1], trade associations exist to support their members and further their interests, to defend them when they are under threats and to promote a common position on issues affecting the environment in which they operate.
Given the foregoing, the PDF Bridge Trade Policy Workstream organised a two-day capacity-building session targeted at strengthening the leadership of non-oil export-related trade associations and improve on their business strategy to position them to take advantage of the opportunities in the non-oil export value chain. The sessions had in attendance delegates from government agencies such as FMITI, NAQS, FMARD, NOTN, CBN as well as executives of trade group drawn from various industries including agricultural commodities farmers, agricultural commodities exchange and aggregators, industrialists, agro-processors, women, and youth development groups, textile and apparel among other participants.
[1] https://www.iiste.org/Journals/index.php/JEDS/article/download/7852/8030
The Trade Policy Work Stream conducted a needs assessment to get direct feedback from export-oriented MSMEs, export-supporting government institutions, and export business service providers to ascertain the capacity gaps. The top 5 challenges highlighted by the respondents include lack of market linkages, lack of finance, lack of market intelligence, limited knowledge of destination country requirements, and Export documentation.
In response to their needs, TRD workstream designed a targeted capacity building for the non-oil export community of practice to address the knowledge and skill gaps through a 4-part Export Capacity Building (CB) Series. The following topics were covered in this sequence:
- Market Entry strategies (with case studies: Europe (EU), US, China)
- Raising Finance for Your Export Business
- Understanding Export Documentation
- Branding and Packaging for export