Once a cornerstone of Nigeria’s industrial economy, the textile sector has suffered decades of decline. In the 1970s and early 1980s, Nigeria had over 180 textile mills, employing more than a million workers, with firms such as United Nigerian Textile Limited, Aswani Textile, Afprint, Asaba Textiles Mills and Edo Textile Mills powering economic growth.
Yet by 2023, textile and garment contributions to Nigeria’s real GDP had shrunk to 1.63%, down from 2.02% in 2019.
In Q1 2024, the industry even reported a negative 1.75% GDP contribution—a sign of its severely contracting footprint. GDP values declined from N1.442 trillion in 2019 to N1.224 trillion by 2024.
A market flooded with imports
Despite its vast domestic market—over 200 million people—Nigeria imports nearly 90% of its textile products, spending over $4 billion annually on imported clothing and fabrics.
The surge has been fuelled by smuggled or counterfeit goods, such as cheaply made “Adire Chinese,” which undercut local producers on price and threaten domestic crafts.
Stakeholders consistently identify structural obstacles. Start with infrastructure deficits. Textile manufacturing is energy-intensive. With unreliable grid supply, mills rely on costly diesel generators, raising production costs and reducing competition.
There’s also import smuggling. Weaker border controls and enforcement allow massive inflows of cheap, second-rate fabric. Smuggling, especially along porous northern borders and via the Republic of Benin, fatally undermines local production.
Additionally, high-interest rates and no dedicated funding lines make modernisation or expansion difficult. Small and medium textile firms struggle to invest in technology or scaling operations.
Initiatives such as the Cotton, Textile and Garment policy—including bailout packages by the Central Bank—have failed largely owing to poor implementation, corruption, weak monitoring and inconsistent stakeholder coordination.
Emerging opportunities
Despite the heavy challenges, pockets of promise exist. The federal government claims to have attracted about $3.5 billion in investment capital as part of a new “resurgence Plan” targeting the entire cotton-textile-apparel value chain.
Meanwhile, local initiatives supporting traditional crafts such as Adire and Akwete cloth are reviving local heritage and easing access to worldwide markets.
Interestingly, several Lagos-based fashion designers are working with local mills, like the Funtua mill in kaduna, to source local cotton, dye locally and promote sustainable fashion, bridging heritage and modern export potential.
Still there’s a lot more to be done to revamp the sector. A multi-pronged approach is, in fact, essential for a sustainable comeback. One such initiative is establishing dedicated textile-manufacturing zones with reliable power, possibly through solar power or public-private partnerships, to reduce dependence on diesel generators.
Boosting border security and cracking down on smuggling through improved customs enforcement and surveillance tech is essential. The government should consider tariffs or outright bans on specific imported fabrics.
Other recommended solutions are expanding access to affordable finance and strengthening policy implementation. Building fashion clusters also plays a vital role.
Supporting craft clusters through fashion weeks, public procurement and creative funds can generate local pride, global visibility and rural empowerment jobs.
More than just fabric
Reviving Nigeria’s textile industry is about jobs, livelihoods and industrial self-reliance. Estimates suggest a fully revitalised textile and garment sector could generate over 2 million jobs, reduce the $4 billion annual import bill and position Nigeria to compete in the global apparel export market.
However, unlocking this potential will require coordinated investments and long-term political will from both the government and the private sector.
The Nigerian textile industry has experienced a significant decline since its peak in the 1970s and 1980s when it was a major contributor to the economy. By 2024, its contribution to GDP fell drastically, with the industry now heavily reliant on imports, accounting for nearly 90% of textiles at a cost of $4 billion annually. Challenges such as poor infrastructure, high production costs due to unreliable power, smuggling, and lack of financial support hinder its growth. Efforts to revive the sector through policies and funding have failed due to poor execution and corruption.
Despite these setbacks, there are emerging opportunities with new federal investments aimed at revamping the cotton-textile-apparel value chain. Local designers collaborate with mills to promote sustainable fashion, indicating a potential for market revival. Recommendations for the industry's renaissance include establishing dedicated power zones for manufacturing, enhancing border security to curb smuggling, and providing financial aids and improved policy enforcement. Strengthening local fashion and craft clusters could also generate pride, visibility, and jobs.
Overall, revitalizing Nigeria's textile industry is crucial for job creation and economic self-reliance, with the potential to generate over 2 million jobs and slash import expenses. However, achieving these benefits requires coordinated efforts and strong political commitment from the government and private stakeholders.
