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COLLAPSE OF TEXTILE INDUSTRY IN NIGERIA: A STUDY OF KANO STATE, NIGERIA
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
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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,
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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.
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Industrial performance in Nigeria particularly Kano State, at any point in its history, has been behind other developing countries,how is it that assembling industrial raw materials (such as cotton, tobacco, groundnuts, cocoa, palm kernels, coal, tin and columbite, etc.) for industries in faraway Britain generated so much wealth in the past, but the actual industrial production (within the country) now yields disappointing results?.
In Kano, for instance, even an industry which contributed immensely to the economy of the metropolis and whose product (cotton) has been internalized in the Hausa culture has collapsed! These un-intended industrial decline and eventual collapse, as opposed to de-industrialization, are not addressed in the studies of transition from a “traditional” rural society to a “modern” industrial society. Hence, this study set to address or answer what lead to the collapse of textiles industry in Kano metropolis and, how can the decline be stemmed so that the operational structure of textile industryin Kano State can be extended beyond the present condition.
1.3 Research Questions
The research answered the following questions:
- What is the condition of textile industry in Kano State?
- What are the factors that necessitated the condition of textile industry in Kano State?
iii. What are the effects of condition of textile industry on residents of Kano State?
- What are the measures to be taken by the governments and other stakeholders to resuscitate textile industry in Kano State?
1.4 Aim and Objectives
The aim of the research is to appraise the role of industries in development with specific concern on the condition of Kano State textileindustry, while the specific objectives of the study are as follows:
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To assess the condition of textile industry in Kano State
To identify the factors that necessitated the condition of textile industry in Kano State
- To assess the effects of the condition of textile industry on residents of Kano State.
- To provide measures to be taken by governments and other stakeholders to resuscitate textile industry in Kano State
1.5 Significance of the Study
The research is very important to policy makers to have the empirical findings about the condition of textile industry in Kano State, the factors necessitated to the condition of the industries, the effects of the condition of the industries on the members of the state, and it will further proper recommendations on the measures to address the challenges faced by the industry. The research work is also significant to the scholars and researchers to serve as a blueprint for investigation and further research. It is also important to the students carrying out a social science research to be used as a useful data and frame of reference.
1.6 Scope of the Study
The term metropolis refers to a large city or urban area and in the case of Kano metropolis comprises of the area within the eight LGAs (Dala, Fagge, Gwale, Kumbotso, Municipal, Nassarawa, Tarauni, and Ungogo). While the industry remains the unit of investigation, however, this studied condition of textile industries in Kano State. And representative respondent were selected from the selected political wards of Gwale and Kumbotso Local Government Areas of Kano metropolis for the study. The study assessed the collapse of textile industries in two selected local Government Areas of Kano metropolis.
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Also, the factors necessitated to the condition of textile industries in Kano State, the effects of the condition of Kano textile industries on the residents of Kano State, the measures to be taken by government and other stakeholders to resuscitate textile industries in Kano State was to a large extent a point of emphasis.