Following disruptions caused by US Presidentl, Donald Trump’s heavy tariff slammed on China and other key Asian countries, mostly majors in cotton, textile and garment (CTG) exports, the Federal Government has revealed that Nigeria is targeting 10 per cent of the estimated $200 billion going to the US market, about $10 billion (approximately over N10 trillion) from these Asian investors to invest in the country’s CTG industry, around the Special Agro-Industrial Processing zones of the Special Economic Zones (SEZ).
The move, New Telegraph Correspondent learnt, “is one-in-a life-time opportunity” for Nigeria to revive her CTG sector, doldrums, amid President Tinubu’s quest to end the importation of $6 billion worth of textiles annually from China, Bangladesh, Vietnam and India, which creates jobs for over one million workers in those countries.
The Senior Special Adviser (SSA) to the President on Agribusiness and Productivity Enhancement, Dr Kingsley Uzoma, dropped this hint in an interview with New Telegraph that the National Economic Council’s (NEC) approval of the establishment of a Cotton, Textile and Garment (CTG) Development Board to drive the revitalisation of the country’s textile, is designed to take advantage of the heavy US tariff on China, Bangladesh, Vietnam, India, Cambodia and others that have disrupted their CTG sector in terms of textiles, apparels and other garments being exported to the US worth about $200 billion annually.
Dr Uzoma explained that Nigeria’s 14 per cent tariff, cheap labour costs, low electricity tariff, huge population (markets), has put the economy at an advantage and positive edge for these Asian investors to target Nigeria’s CTG industry to float textile factories and cotton processing plants.
Specifically, the SSA disclosed that Nigeria is becoming the bride for many industrial giants following President Trump’s tariffs announcement, especially in the global CTG sector, which is the number one foreign exchange (FX) earner in the World trade market currently.
His words: “When we now look at the trade factors on a back-to-back investment, this is where the CBN together with the NCS, NPA will step up to work for the country’s CTG industry, especially the government bonded warehouses system; all the different trade instruments that this government is trying to revive in this sector. “It is unique because this is one-in-a-life time opportunity for us to revive the CTG sector.
I will give you instances: Chinese export of cotton, textile, garment, apparel is more than $300 billion in 2024. But the total export to US of garment and associates is $159 billion. Bangladesh’s export of apparels alone to US is $9.7 billion. Vietnam’s export is $17.5 billion.
“What is the current tariff regime under Trump? Vietnam – 46 per cent, export of apparels. So you are motivated talking about the associates because when you add the associates, the next domestic charge is 17.50 per cent and tariff is 46 per cent. What of Bangladesh’s 37 per cent? The export of apparels is $9.7 billion.
“The combined total of this – just the apparel that am talking of – is $110 billion. But when you put the associates, it is more than $200 billion. It is the largest market. And more than 70 per cent of the import from the US is from these high tariffs’ countries – Vietnam, Bangladesh, India, and China.
