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).
Associated resources
This study conducted by PDF with support from FCDO (formerly DFID) shows that women who engaged in cross border trade contribute to food security by trading food products from areas of surplus to areas of deficit. The paper reveals that depending on how this trade is organized, these women have the potential to contribute significantly to household earnings and resources. This empowers women by giving them financial independence and control of their own resources.
The Trade Policy Work Stream started out by conducting 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.
Respondents were further asked about what they would like to see if there is an opportunity for assistance with capacity building for export readiness and export market access. Each responded provided its top 3 areas of preference for capacity building. The findings from the overall assessment provided a guide on areas to address.
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.
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.
Against a backdrop of falling oil prices, the Nigerian government has woken up to its economic vulnerability to oil-related disruptions. This underscores the need for diversification to non-oil exports. PDF Bridge supported the drive towards growing non-oil export by supporting under-represented non-oil exporters through three strands of work: strengthening Nigeria’s ability to trade beyond its borders through the Network of Practicing Non-Oil Exporters of Nigeria (NPNEN), an export mentorship programme, which links experienced exporters with new and growing export businesses; and training sessions for micro, small and medium-sized enterprises (MSMEs) intending to export non-oil goods were held on; Market Entry Strategies, Understanding export documentation, Raising Finance for Export, Branding, and packaging for export. In addition, Roundtables were held on;
- Addressing Barriers to Access to Foreign Markets – An analysis of Spices & Herbs, Textiles & Garments, and Leather Products;
- Analysis and Impact of Export Expansion Grant on Export Potential, Market Access and Export Competitiveness in Nigeria;
- Improving Market Access through Digital Trade and;
- Analysis of Potentials of Nigeria’s Services Sector for Economic Diversification, Employment and Foreign Trade;
- Diversification and Non-oil Export Opportunities for Nigeria States Post-COVID19 Study
The study ‘Diversification and Non-Oil Export Opportunities for Nigerian States Post-COVID-19’ was commissioned by the NEPC through the Policy Development Facility (PDF) Bridge Programme for use by the public and private sector stakeholders. Ernst & Young conducted a market analysis on six prioritised products from the Zero Oil Initiative and provided strategic recommendations.
PDF Bridge has now developed a policy brief for stakeholders to highlight the key issues and recommendations. The full study can be accessed here.
