Despite numerous government initiatives, Nigeria’s textile industry remains struggling, as evidenced by the recent dramatic increase in textile imports, which highlights the industry’s long-standing structural issues.
According to data from the National Bureau of Statistics (NBS), imports of textiles and textile-related products increased by 47% year over year to ₦814.3 billion in the first nine months of 2025, up from ₦552.3 billion in the same period in 2024.
The increase demonstrates the nation’s increasing reliance on imported textiles in the face of low domestic production.
Simultaneously, the sector’s performance worsened, with real growth decreasing by 2.4 percent in the third quarter of 2025, following a 1.3 percent contraction in the previous quarter.
In an effort to revitalize the cotton, textile, and apparel industries, the federal government has launched a number of programs since 2018, mostly through the Central Bank of Nigeria (CBN).
Targeted financing, capacity-building initiatives, and limitations on foreign exchange access for textile imports are some of these strategies.
Authorities have reaffirmed their commitment to creating an all-encompassing policy framework to bolster the industry in more recent times.
Import statistics, however, indicate that the industry’s downturn has not yet been stopped by these initiatives.
The textile industry is losing ground even though it contributes significantly to industrial production and has enormous potential for export expansion, employment creation, foreign investment inflows, and poverty alleviation.
According to NBS data, import volumes have continued to rise, undermining domestic value chains and local industries.
From textile powerhouse to decline
During the 1970s and 1980s, Nigeria was one of Africa’s leading textile producers, supplying both its large domestic market and neighbouring West African countries.
At its peak, the industry operated roughly 180 textile mills and directly employed over one million workers, while also supporting extensive cotton farming and allied industries.
However, the sector began to unravel in the 1990s as local manufacturers struggled to cope with widespread smuggling, unchecked imports, unreliable electricity supply, policy inconsistencies, and rising insecurity.
These challenges intensified even as Nigeria’s population, and potential consumer base, continued to grow.
In a 2023 interview with BusinessDay, Hamma Kwajaffa, director-general of the Nigerian Textile Manufacturers Association, revealed that although the country still has about 24 textile factories, only three remain fully operational.
He noted that continued patronage by a few government agencies has kept some facilities afloat, warning that many would have shut down entirely without such support.
Successive governments have attempted various policy responses over the years. Nigeria imposed a ban on textile imports in 2008, but this restriction was lifted in 2015 and replaced with a 35 percent import duty.
In 2019, the CBN introduced foreign exchange restrictions on textile and fabric imports, a policy that was eventually reversed in 2023.
While these measures were intended to protect local producers, industry stakeholders argue that inconsistent implementation and weak enforcement have limited their impact, leaving Nigeria’s once-vibrant textile industry still searching for a sustainable path to recovery.
