Two years on, Nigeria’s textile revamp lags as imports hit N814bn

…Poor infrastructure, smuggling, high energy cost cited as obstacles

Two years after the Federal Government launched an ambitious plan to revive Nigeria’s cotton, textile and garment (CTG) industry, many of the country’s once-thriving textile factories remain shut, cotton production has collapsed, and imports continue to dominate the market despite multi-billion-dollar investment pledges and a series of policy interventions.

The latest revival effort, backed by promises of 3.5 billion in investment commitments to support a comprehensive resurgence plan for the cotton, textile and apparel industry.

Speaking during a ministerial briefing to mark President Bola Tinubu’s first year in office, Doris Uzoka-Anite, then Minister of Industry, Trade and Investment, described the sector as critical to Nigeria’s industrialisation agenda, citing its potential to create jobs, attract foreign investment, boost exports and reduce poverty.

“The ministry is developing a Resurgence Plan for Optimized Performance of the Nigerian Cotton, Textile and Apparel Industry in partnership with development partners and private sector players. We have attracted `$3.5 billion investment capital to unlock this sector,” she said at the time.

Read also: Nigeria targets 1.5 million jobs through textile industry revival

Three months later, the government strengthened its engagement by partnering with the International Cotton Advisory Committee (ICAC) to revive cotton production and rebuild the value chain.

At a meeting with an ICAC delegation in Abuja, Vice President Kashim Shettima said the initiative could generate more than 1.4 million jobs annually across cotton farming, ginning, weaving, garment manufacturing and related industries. He urged stakeholders to develop a practical roadmap for implementation, stressing the need for action rather than rhetoric.

In April 2025, the National Economic Council approved the establishment of the Cotton, Textile and Garment Development Board, which is expected to coordinate policy implementation and funding across the value chain. The board is to be financed partly through proceeds from the Textile Import Levy collected by the Nigeria Customs Service.

The government subsequently established a Textile Steering Committee and designated the CTG industry as a flagship pilot under its industrial transformation programme.

Authorities have set ambitious targets, including increasing the number of operational textile mills from about 24 to 70 and creating between 1.4 million and 1.5 million direct and indirect jobs. The broader objective is to position Nigeria to take advantage of a global textile market projected to approach $2 trillion in value over the coming years.

John Owan Enoh, Minister of State for Industry, Trade and Investment, recently disclosed that a six-month pilot programme under the initiative successfully produced 10,000 made-in-Nigeria T-shirts using locally sourced cotton.

According to him, the exercise demonstrated Nigeria’s capacity to transform local cotton into globally competitive finished products within a short period.

But despite these policy initiatives, the reality across the country’s textile hubs tells a different story.

Several textile factories that once powered industrial activity remain abandoned years after shutting their doors.

Among the most prominent examples is Asaba textile mill in Delta state. Established in 1964, the factory was once one of Nigeria’s most important industrial assets, producing 100 percent cotton African prints and employing more than 5,000 workers at its peak, making it the country’s third-largest textile producer.

Today, the facility lies largely dormant after years of financial distress, with much of its equipment either lost or liquidated. Despite repeated calls for intervention, operations have not resumed.

Read also: FG taps $1.39trn textile sector as flagship pilot for Nigeria’s industrial transformation drive

The same pattern is visible across other major textile firms, including Kaduna Textiles Limited, Arewa Textiles Plc, United Nigerian Textiles Limited, Nortex Nigeria Limited and Fintex Nigeria Limited, many of which have either shut down completely or drastically reduced operations.

Industry stakeholders say the continued closure of these factories underscores a recurring problem in Nigeria’s industrial policy landscape: ambitious announcements that fail to translate into measurable outcomes.

“The Nigerian textile industry was one of the biggest employers of labour, but the government failed to sustain the sector,” Samuel Nzekwe, former president of the Association of National Accountants of Nigeria (ANAN) told BusinessDay.

While the government continues to tout new programmes to revamp the sector, economic indicators show that Nigeria remains heavily dependent on imported textile products.

According to figures from the National Bureau of Statistics, Nigeria imported textile and textile articles valued at N228.83 billion in the first quarter of 2025, N337.12 billion in the second quarter and N248.32 billion in the third quarter.

The combined import bill of N814.27 billion for the first nine months of 2025 represents a 47.4% increase from the N552.31 billion recorded during the corresponding period of 2024.

The figures indicate that despite multiple intervention programmes over the years, local manufacturers remain unable to meet domestic demand, leaving the market heavily dependent on foreign products.

Equally troubling is the collapse of cotton production, the primary raw material for the textile industry.

Industry estimates indicate that Nigeria’s cotton output has fallen from about 2.5 million metric tonnes in the early 2000s to roughly 10,000 metric tonnes today, representing a decline of more than 95%.

Analysts say the erosion of cotton farming has weakened the foundation of the entire textile value chain, limiting the ability of manufacturers to source raw materials locally.

Nzekwe attributed the sector’s decline to a combination of smuggling, weak infrastructure, high production costs and poor policy execution.

According to him, cheaper textile imports from Asia flooded the Nigerian market while authorities failed to effectively curb smuggling through the country’s borders.

Read also: Nigeria eyes textile glory again but odds look threadbare

He noted that the collapse of textile manufacturing contributed significantly to rising unemployment, particularly in industrial centres such as Kano, Kaduna and Lagos.

Nzekwe also lamented the country’s growing dependence on imported fabrics and garments, arguing that Nigeria continues to lose substantial foreign exchange importing products that could be manufactured domestically.

He urged the government to improve border security, strengthen power infrastructure, address insecurity and provide affordable financing for manufacturers.

“The major challenge facing the industry is infrastructure, especially electricity. If manufacturers are not forced to rely heavily on generators, production costs will decline significantly,” he said.

Stakeholders say the collapse of cotton farming has severely weakened the foundation upon which the textile industry depends.

Similarly, Samson Simon, Chief Economist at ARKK Economics and Data Limited, said the latest government initiative would only succeed if it departs fundamentally from previous attempts.

While acknowledging that the new framework appears more structured and data-driven, particularly with support from the United Nations Industrial Development Organisation (UNIDO) and opportunities under the African Continental Free Trade Area (AfCFTA), Simon cautioned that implementation remains critical.

“It’s good to know that the authorities want to resuscitate the cotton, textile and garment industry. However, this is not new as many previous governments have tried to no avail. If this move is to deliver results, it must do things differently,” he said.

According to him, the government should focus on creating an enabling environment through stable power supply, affordable credit, infrastructure development, tax incentives and support for research and development.

“The government should play the role of a regulator and enabler. If it does that well, then there would be a snowball chance in hell of the industry roaring back to life.

Some facilitating roles the government can play include infrastructure or even an industrial, Energy is key

“As the CTG sector is energy-intensive and can consume up to half of the expenses. Hence, providing stable and affordable power would be a game-changer. Easy credit is all-important. Credit facilities at rates that are single-digit would boost the expansion of the sector,” he said

Read also: FG’s textile revival plan doubtful as policy failure, insecurity threaten rollout

He also warned that any revival strategy must address the impact of cheap textile imports, particularly from Asia, which contributed significantly to the collapse of local manufacturers.

For Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), the decline of the textile sector reflects Nigeria’s broader deindustrialisation challenge.

He noted that labour-intensive industries such as textiles play a critical role in employment generation, household income growth and poverty reduction.

“The decline of labour-intensive industries such as textiles has profound implications for employment, household incomes, industrial linkages and poverty reduction,” Yusuf said.

According to him, Nigeria’s industrial recovery will depend on a production-focused growth strategy anchored on energy reforms, infrastructure investment and a more competitive operating environment for domestic manufacturers.