The local textile industry is under attack from smuggled and dumped Nigerian wax prints. As an incentive to exporters, the Nigerian government has granted tax rebates amounting to between 40-60% of production costs, thereby making their exports cheaper. In addition a ban has been placed on import of textile prints into the country.

Industry sources in Ghana told the Business and Financial Times newspaper that they are under tremendous pressure to relocate to Nigeria where the incentives are better. They explain that the Nigerian textile industry is recovering fast from the fierce competition it is facing from China and other countries in the Far East.

Analysts reckon that if the operating climate for Ghanaian textile firms does improve, smuggled and dumped textiles would wipe out the local industry in the near future.