An Assessment of the Potential Challenges of the African Continental Free Trade Agreement on Nigeria’s Textile Industry

Adaora Osondu-Oti ()
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Adaora Osondu-Oti: Afe Babalola University

A chapter in The Palgrave Handbook of Africa’s Economic Sectors, 2022, pp 671-692 from Springer

Abstract: Abstract This chapter assesses the potential challenges of the African Continental Free Trade Agreement (AfCFTA) on Nigeria’s textile industry. It adopts a qualitative case study and documentary research approaches. Findings reveal that AfCFTA is an opportunity for Nigeria to gain access to Africa’s market of 1.2 billion people, with little or no restriction. However, Nigeria’s textile industry stands at the risk of total collapse. A study of two major textile firms (Sunflag and United Textile Companies) shows that the industry is struggling to survive due to the influx of cheap fabrics from China, smuggling of used clothes from neighboring States, infrastructural deficit such as power supply, and poor access to finance to procure new types of machinery. Thus, Nigeria’s implementation of AfCFTA will add to the woes of the industry.

Keywords: Challenges; AfCFTA; Nigeria; Textile; Industry (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-75556-0_26

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DOI: 10.1007/978-3-030-75556-0_26

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