Once a thriving sector and a major contributor to Nigeria’s economy, the textile industry today stands as a shadow of its former self. In the 1980s, Nigeria’s textile sector was the second-largest employer of labour after agriculture, with over 175 textile mills employing hundreds of thousands. However, years of neglect, policy missteps, and global competition have brought the industry to its knees. Despite renewed efforts to rejuvenate this vital sector, significant impediments remain.
One of the primary challenges facing Nigeria’s textile industry is inadequate power supply. Textile production is energy-intensive, and the high cost of generating power independently has rendered many mills uncompetitive. For instance, manufacturers often rely on diesel generators to meet their energy needs, which significantly increases production costs. This hinders their ability to compete with cheaper imported fabrics, particularly from Asia.
Another major impediment is smuggling and the influx of counterfeit textiles. Despite government policies aimed at curbing smuggling, porous borders and weak enforcement mechanisms have allowed substandard and low-cost fabrics to flood the Nigerian market. This unfair competition has led to the closure of many textile factories, as local producers struggle to compete with illegally imported goods.
A lack of access to finance also stymies the growth of the industry. Many textile companies are unable to secure affordable loans to upgrade machinery, adopt modern technologies, or expand operations. High-interest rates and stringent lending conditions make it difficult for businesses to invest in innovations that could boost productivity and reduce costs.
The absence of a comprehensive cotton-to-cloth value chain further complicates the situation. Cotton production, which is the backbone of the textile industry, has declined over the years due to poor farming practices, low yields, and inadequate support for farmers. Without a reliable supply of quality raw materials, textile mills are forced to import inputs, driving up costs and reducing the competitiveness of locally produced fabrics.
Moreover, policy inconsistency has plagued the sector for decades. Successive governments have introduced various initiatives to revive the textile industry, but these efforts have often been short-lived or poorly implemented. For example, the bailout funds provided by the Central Bank of Nigeria (CBN) under the Cotton, Textile, and Garment (CTG) policy have yielded mixed results due to corruption, lack of accountability, and insufficient stakeholder engagement.
To address these challenges, Nigeria must adopt a holistic and coordinated approach to reviving its textile industry. First, investing in reliable and affordable energy infrastructure is paramount. The government should prioritise partnerships with the private sector to improve power supply, reduce reliance on diesel generators, and lower energy costs for manufacturers.
Second, stricter border controls and enhanced enforcement of anti-smuggling laws are critical. Equipping customs officials with modern surveillance technology and ensuring accountability in border management can help stem the tide of illegal textile imports. Additionally, imposing higher tariffs on imported fabrics while incentivising local production can create a more level playing field.
Third, improving access to finance for textile manufacturers is essential. The government, in collaboration with financial institutions, should provide low-interest loans and grants to support the upgrading of machinery and adoption of modern technologies. Establishing dedicated funds for the textile sector, coupled with transparent disbursement processes, can ensure that resources reach deserving enterprises.
Fourth, revitalising the cotton production value chain is non-negotiable. This includes providing subsidies and technical support to cotton farmers, encouraging the use of high-yield seeds, and investing in irrigation systems. Establishing partnerships between cotton farmers and textile mills can ensure a steady supply of raw materials, reducing reliance on imports.
Lastly, policy consistency and stakeholder engagement are crucial. The government must commit to long-term strategies that prioritize the textile industry as a cornerstone of economic development. Regular consultations with industry players, unions, and other stakeholders can help design policies that address the sector’s unique challenges.
Reviving Nigeria’s textile industry is not just about restoring a once-thriving sector; it is about creating jobs, boosting exports, and fostering economic diversification. With the right mix of policies, investments, and political will, the textile industry can once again become a vibrant contributor to Nigeria’s economy and a source of national pride.
