Traditional textiles have been produced in Nigeria for many years, but real
industrial activity in textile production is comparatively recent. After some
minor attempts, the Kaduna Textile Mills was established in 1956, followed by
Nigerian Textile Mills in 1962. From inception, these companies were conceived
as vertically integrated mills, to convert locally available raw materials -
mainly cotton - through spinning for the production of yarn, weaving for the
production of grey cloth, and dyeing, printing and finishing, for the
production of finished textiles.
Today, the sector has developed to incorporate fibre production, spinning,
weaving, knitting, lace and embroidery makings, carpet production, dyeing,
printing and finishing. The sector produces a varied series of fabrics
annually, ranging from African prints, shirtings, embroideries, etc., to Guinea
brocades, wax prints, jute and other products. The Central Bank of Nigeria (CBN) Annual report for
1995 showed that out of 13 subsectors in the Manufacturing sector, the Textile
sector - comprising Cotton Textile and Synthetic Fabrics - continued to account
for a significant proportion of the overall growth of manufacturing production.
The synthetic fibre section of the textile industry has recorded substantial
growth over the years.
A trend towards integration can be observed in the textile industry. Today,
almost all large companies are active in several sub-sectors. Many of the
companies in this sector are quite small. A process of concentration is taking
place, and a number of important groups are emerging.
Between 60% and 70% of the raw materials used in the industry are sourced
locally, the main exceptions being high quality cotton and synthetic materials.
The industry is labour intensive, with little mechanization; it is estimated
that it provides employment to around 150,000 Nigerians, excluding the
thousands who are directly employed in the cottage sector of the industry.
The major textile enterprises in Nigeria are located around Lagos which has
the majority of the country's spinning mills and weaving mills. Other
significant textile operations are located around Kano and Kaduna.
There is presently no restriction in ownership in the Nigerian textile
industry but foreign ownership is limited. Through privatisation, most of the
equity investments held by government has been transferred to private hands.
The performance of the industry has improved significantly as a result.
Foreign investment is mainly by Chinese and Indian investors, although
Europe, the U.S., Japan and Syria are also represented.
Some of the big groups which have emerged as a result of mergers, vertical
integration, and take-overs are linked to the international groups such as the
Cha Chi Ming and Churchgate groups.
The significance to the Nigerian economy of these groups is high as, in
addition to financial resources, they bring the experience of other developing
countries.
In the early 1990's, most of the local needs were met by local industry, the
balance being made up by high quality fabrics entering through unofficial trade
from Holland, Austria, China, and Japan, and technical textiles for specific
uses such as in the automobile industry.
At the same time, exports were estimated at between 25% and 30% of
production, making the industry an important earner of foreign exchange.
The Nigerian market has a strong demand for African prints, as well as for
satin and brocade.
The major textile machinery and equipment in operation in the Nigerian
textile industry can broadly be grouped into the following categories:
- Spinning (*Carding | *Ring Spinning | *Open-end Spinning | *Air-jet)
- Weaving (*Schall-looms)
- Winding
- Twisting
- Finishing (*Printing | *Washing and Bleaching)
There are two main channels of distribution employed by Textile Mills in
Nigeria. The direct method involves the sale of goods directly to the
final consumers through retailership and on the spot selling by the Textile
Mills involved. Mills sell their products through licensed and appointed
retailers as well as through on the spot selling. Some smaller mills and firms
in the spinning subsector also dispose of their yarns by supplying their sister
companies or other mills primarily involved in weaving production.
The indirect method entails only the use of a wholesale channel of
distribution. This method is mostly used by the big textile companies. In this
method, the appointed distributors are only licensed for distribution and sales
in the market. These distributors are financially strong and play advisory role
to the mills with regard to the designs of the products and customers'
preferences. The only serious competition facing the textile industry in
Nigeria appears to be the significant quantity of textile products entering
through unrecorded trade, mainly from the Asian countries.
