COLLAPSE OF TEXTILE INDUSTRY IN NIGERIA: A STUDY OF KANO STATE, NIGERIA
ABSTRACT
This study focuses on the Collapse of Textile Industry in Nigeria: A  Study of Kano State, Nigeria.The particular focus of this study is on the operational production level of the textile industries.  Other  issues  investigated  were  factors  that  necessitated  the  collapse  of  textile industries in Kano. The study further investigated the effects of the condition of textile industries on  residents  of  Kano.  The  study  objective  further  examined  the  measures  to  be  taken  by government to resuscitate textile industries in Kano. Relevant literature was reviewed in line with  the  study  objectives.   Modernization,Dependency  Theoryand   Theory  of   Technology Spilloverwas adopted as its theoretical framework. The study was conducted in two selected local government areas of Gwale and Kumbotso, primary source of data was used for the study. Also, multi stage cluster sampling techniques was adopted to select the sample for the study. Both quantitative and qualitative methods of data collection were employed with questionnaire as  the  principal  quantitative  instrument;  while  and  in-depth  interview  were  utilized  as  the qualitative  instrument.  In  collecting  data  for  this  project,  a  total  two  hundred  and  fourty questionnaires (240) were administered on scientifically selected household heads of Gwale and Kumbotso local government areas of Kano metropolis. Eight (8) in-depth interviews were held with key informants.  The quantitative data collected were analyzed using Statistical Package for Social Sciences (SPSS version 22.0) from which simple descriptive statistics was used. The study found that 193 of the respondentsreported that most textile industries in Kano are closed down, with 40 of the respondents reported that some are in operation with limited utilization capacity and 7 of the respondents reported that the industries are in operation. 110 of the respondents reported lack of grant and subsidy as the factor responsible for the condition of the industries, with  200  respondentsmentioned  low  patronage  of  locally  made  textile  products.It  was recommended  that  Government  should  restrict  the  importation  of  foreign  textile  goods  to Nigeria, Government should give out loans to owners of textile industries to aid in production of textile  materials,  The  congested  markets,  especially  the  inner  zone  markets  should  be decongested and adequately planned, Electricity supply to the textile companies is a critical resource factor, efforts should be made to see that all industrial areas have dedicated power lines that are supplied with electricity 24 hours a day. A presidential task force should be established and charged with the responsibility of doing this.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Textile industry plays a major role in the development and industrialization process of countries and their integration into the world economy. The World Trade Organisation (2006) notes that in 2004, developing countries as a group (low and middle income countries) accounted for more than  half  of  all  world exports  of  textiles  and  clothing  and  that  in  no  other  category  of manufactured goods developing countries enjoy such a large net-exporting position.
Textiles have been an extremely important part of Bangladesh's economy for a very long time for a number of reasons. Bangladesh is the world's second biggest exporter of clothing after China. Bangladesh Textile Mills Corporation Annual Report (2005-2012). Readymade garments make up 80 percent of the country's $24 billion in annual exports and 15 percent share of GDP, (Bloom,2001). In Asia, Bangladesh is the one of the biggest largest exporter of textile products providing employment to a great share percent of the work force in the country. Currently, the textile industry accounts for 45% of all industrial employment in the country and contributes 5% of the total national income (Bloom,2001).
By the early 1980s, the textile industry was Kenya’s leading manufacturing sector in terms of both employment and size, involving over 200,000 households and 30% of the manufacturing labor force Export processing Zone (2005). In the early 1990s, due to several factors including mismanagement, lack of investment, and, notably, the availability of secondhand clothing, the local textile industry in Kenya collapsed. Beginning in 2000, the apparel manufacturing industry in  Kenya  began  to  grow  rapidly  due  to  African  growth  and  opportunity  act.  Until  2005, investment, job growth, and production surged in this export-oriented apparel sector. Since the
completion of the multifibre arrangement on January 1, 2005, Kenya is experiencing a volatile atmosphere of factory closures, urgent policy prescriptions, and renewed calls for reinvigorating domestic textile production and consumption(Tina, 2006).
The story of the Nigerian Textile Industry started with the establishment of the Kaduna mills in 1956. This was followed by the incorporation of the United Nigerian Textiles Limited in 1964. The third textile Company, Arewa textiles, came on stream in 1965 (Abimbola, 2010). Towards the end of the 1960s other Companies like Afprint, Enpee, Asaba Textiles, Aswani Textiles and Five Star, joined the trail (Muhammed, 2003; and Uzoigwe, 2005). Between 1970 and 1987, the Nigerian Textile Industry prospered with demand for products far in excess of supply by 91 percent  (Muhammed,  2003).  During  this  period,  the  industry  had  more  than  100  textile companies, employing over 200,000 workers. By this, the industry ranked second only after the Nigerian Government as an employer of Labour. By 1994, a total about of 124 textile companies were in operation in Nigeria (Uzogwe, 2005).
Although, performance in the manufacturing sector in Nigeria  had  been on  a  general decline, for the textile industry, the decline was more pronounced because of the nature of the industry which is labour intensive with the  vertical integration anticipate at its  conception and  its heavy dependence on infrastructure.  The collapse of the existing infrastructure has tremendous effect on the manufacturing industries that uses diesel to power their plants during power outage. This increased  cost  of  production,  led  to  low  capacity utilization  and  also  made  our  industries increasingly less competitive in the global economy (Lyman, 2004)
In an attempt to industrialize the North, the late Sardauna of Sokoto and premier of the defunct Northern  Region  of  Nigeria,  Sir  Ahmadu  Bello  established  the  Kano  textile  factory  in Gwammaja. The idea was to process the large quantity of cotton grown by farmers in the North
since cotton is the primary raw material for textile industry. Other related factories such as weaving and spinning enterprises sprang up at the same period thus between the 1970s and 80s, the city was transformed into textile base day all are in a state of collapse. It is on this basis the researcher intends to assess the collapse of Textile industry in Nigeria, specially Kano State, Nigeria
1.2 Statement of the Research Problem
According to Muhammad (2010), in 1980s, Kano textile industries employed a minimum of 500 workers to a maximum of 4,000 depending on their size and capacity. Muhammad further asserted that by 1980, Kano had 40 textile factories but as of 2003 not up to 10 were in operation. Some of the closed factories in Kano are Kano Textile Printers; Kano Textile Industry and Bagauda Textile Industry. However, over the years, the decay in Kano textile industries is attributed with a number of challenges like poor power supply, unavailability of raw materials, and lack of financial assistance from the government and importation of foreign goods resulting in very high production cost.Furthermore, Faleye (2013) identifies some of the factors that are responsible  for  the  dwindling  fortune  and  closure  of  a  large  number  of  Nigerian  textile industries. Absence of a trade union among the textile industry workers/artists relegated the sector to a subsistence level, in addition to poor government policies on importation which opened  the  industry  to  unhealthy  competition  from  foreign  textile  firms.  The  massive importation of textiles in the pre and post independent Nigeria, even till now, has adversely affected the existing market for textile industries at cottage and technological advanced levels. Many workers of textile industry were laid off leading to increased unemployment and poverty rates among the indigenous citizens of the state, and taxes derived in billions by governments from theseindustries had become a thing of the past.