Local producers struggle as textile imports hit N566bn

Local producers struggle as textile imports hit N566bn

Nigeria imported textiles and textile articles worth N565.96bn in the first half of 2025, according to the latest figures from the National Bureau of Statistics. The sharp rise has alarmed industry stakeholders, who warn that unchecked importation continues to cripple local textile manufacturing and erode jobs in the sector.

The figures show that textile imports jumped by 56.6 per cent year-on-year, compared to N361.39bn recorded in the first half of 2024. In the second quarter alone, textiles worth N337.12bn entered the country, an 84.27 per cent rise from N182.95bn in the same period of 2024.

The surge builds on previous trends. In 2024, Nigeria imported N726.18bn worth of textiles, almost doubling the N377.47bn recorded in 2023. Despite government promises of reform under the Cotton-Textile-Garment (CTG) programme, import dependence shows no signs of abating.

In April, the Federal Ministry of Industry, Trade and Investment announced an initiative to “localise up to $4bn in spending on textile imports, fostering economic growth, creating jobs, and boosting local manufacturing capabilities.”

The Minister of State for Industry, Trade and Investment, Senator John Enoh, said the government planned a national campaign to promote locally made garments across ministries, departments, and agencies, citing Ogun State as a model.

The government also pledged to work with the Bank of Industry (BOI) to provide financing and machinery for textile firms.

By August, officials began site visits in Kaduna as part of the revival plan. Yet, with importation soaring, stakeholders argue that progress has been far slower than expected.

In a phone interview with The PUNCH, the Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, lamented the worsening state of the textile sector. “The textile industry has had its downturn, and to the best of my knowledge, there has not been much progress in terms of the core textile functions that will give you value for your investment,” he said.

Ajayi-Kadir explained that the massive influx of cheap finished textiles, often dumped into the Nigerian market, discourages local production. “These products are virtually dumped, consciously and intentionally, to overrun the domestic market. Local firms cannot compete due to the harsh operating environment, so they fizzle out,” he added.

He recalled that Kaduna once hosted at least six textile factories under MAN’s coverage, but today has none. Even cotton production, he said, has been undermined, as producers prefer to export rather than supply local mills due to poor competitiveness.

Stakeholders have urged the Federal Government to revive the CTG programme more aggressively, with support for cotton farmers, ginneries, and textile mills. The government has also promised to revive closed factories and encourage local raw material sourcing.

However, Ajayi-Kadir cautioned against outright bans on textile imports, arguing instead for tariff differentials and quota systems. “Excessively high tariffs will only encourage smuggling. What we need is a delicate balance that protects the domestic industry while ensuring stability in the market,” he said.

Some fashion sector players believe that, despite challenges, the current environment presents opportunities for local growth. The President of the Association of Women in Fashion Tech, Bukola Ajani, said the naira devaluation has made foreign sourcing more expensive, prompting many businesses to consider local production.

“The devaluation of the naira helped us. Before, people went to China or Turkey for production. Now, the cost of importing is too high. It’s better to produce locally. As Nigerians are looking into local production, foreigners are also looking into the cheap labour here,” Ajani noted.

The textile industry was once a major employer in Nigeria, particularly in the northern states, but decades of policy inconsistency, smuggling, and infrastructure gaps have left it struggling. While government officials insist that revival remains a top priority, the import bill suggests otherwise.

Industry experts stress that without urgent action, Nigeria risks losing one of its most historically significant industries, along with the jobs and value chains it sustains.

As Ajayi-Kadir summed it up: “Textile manufacturing has the potential to create millions of jobs if properly supported. But if imports continue at this pace, our industry will remain on life support.”

With over half a trillion naira spent on imports in just six months, the challenge before policymakers is stark: whether to sustain a dependency that drains foreign exchange or to build a competitive local textile industry capable of meeting Nigeria’s vast demand.

Nigeria's Textile Imports Hit N566bn, Local Producers Strugg