Chinese-made textiles have flooded the Nigerian market. Traders say cheap imports have been disastrous. Nigeria has a history of weaving and textile manufacturing dating back centuries. Factories have shut and trade in home-spun fabrics has dwindled, prompting calls for foreign investment within Nigeria rather than cheap, mass importation, as well as better regulation.

The Chinese have effectively edged Nigerian traders out of business, leaving them with nothing but huge debts and heaps of goods in their shops. After having taken over the import and distribution of textiles, the Chinese are now into retail trading. The troubles began a decade ago when Chinese textile merchants started massive imports of textiles in Nigeria after Africa’s most populous nation opened its doors to foreign trade.

The WTO deal gave the Chinese unfettered access to Nigeria’s textile market, although Nigerian laws prohibit foreigners from retail trading. There are rumors locals are being recruited to conduct business on behalf of the Chinese in return for a cut in profits. Hundreds of textile dyers staged street protests against what they view as a Chinese takeover of their trade. The dyers accuse the Chinese of faking their products and selling inferior cloth at a fraction of the price.

The way out is to regulate Chinese trading. That could include quotas, stricter enforcement of import regulations, duties and taxes as well as fuel subsidies to boost local manufacturing and help home-grown businesses.