Once a thriving sector that fueled economic growth and employment, Nigeria’s textile industry has suffered a dramatic decline.
The influx of cheap Chinese imports has undercut local production, leading to factory closures and job losses, leaving the once-booming industry struggling to survive.
Is there a chance of recovery?
In the 1990s, the textile industry in Nigeria was a key driver of the economy, providing employment to hundreds of thousands in Africa’s most populous country.
“It was full of activities, from Kaduna, Kano, Lagos and Onitsha, textile factories were located in all those places,” said Hamma Ali Kwajaffa, the head of Nigerian Textile Manufacturers Association.
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Textile mills across the country produced high-quality fabrics for Nigerian buyers as well as international markets. Booming production chains also supported local cotton farmers.
Today, however, only a few factories remain, and even those are struggling amid the influx of cheap textiles from abroad — particularly from China.
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Why are Chinese fabrics so much cheaper?
Nigeria still boasts domestic cotton farms. However, its textile manufacturers need to procure dye, chemicals, starch and synthetic fibers from other countries.
In contrast, China’s textile industry benefits from an integrated supply chain, where all the necessary goods and even machinery are available domestically.
“China already produces all the raw materials,” said Anibe Achimugu, president of the National Cotton Association of Nigeria. “This means they can produce at a cheaper price.”
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Another obstacle for Nigeria’s textile industry is the depreciation of the country’s currency, the naira. In 2023, Nigerian President Bola Ahmed Tinubu ended measures that kept the naira at a fixed value and instead let the value be determined by supply and demand for foreign exchange. The currency has since dropped, driving up the cost of importing raw materials and spare parts.
Are Chinese rivals copying Nigerian designs?
Kwajaffa of the Nigerian Textile Manufacturers Association pointed out that imported textiles are often made of polyester rather than cotton. Polyester is cheaper, but is also considered lower in quality.
According to Kwajaffa, imported textiles often fade quickly and do not last as long as cotton fabrics. However, because some of the foreign fabrics mimic Nigerian-made designs, consumers may mistakenly attribute them to local manufacturers. Also, clothes smuggled from China are sometimes illegally marked as “Made in Nigeria” and sold at lower prices, he said.
“Because of the cheap price, local people will prefer to get it irrespective of the damage to the skin and the way the color will wash within two to three days,” Kwajaffa told DW. “Those counterfeit ones, they come in, they wash easily, and they blame it on Nigerian-made because they are buying the same design.”
Only handful of textile mills remaining in Nigeria
In 1997, the Nigerian government introduced the Textile Development Fund Levy Policy, a 10% tax on imported textiles intended to support local production.
More than two decades later, Kwajaffa said this money “has not reached the manufacturers.”
Without financial support, local producers have continued to lose ground against cheaper imports. The decline has resulted in millions of people — textile workers, as well as cotton farmers and traders — losing their jobs. Industry figures show that Nigeria once had over 150 textile mills. Today, fewer than four remain in operation, according to Achimugu.
The demand for locally grown cotton continues to drop, and the decline of cotton farming “is very much visible in Nigeria.”
“The 2024-25 cotton farming season has been the worst I know,” said Achimugu.
Nigeria drops out of ICAC due to unpaid dues
Nigeria was previously a member of the International Cotton Advisory Committee (ICAC), an organization that provides research, market data and policy recommendations to support the global cotton industry. However, Nigeria has not paid its membership dues for several years and is no longer part of the organization.
Kwajaffa believes the declining state of the cotton, textile and garment production has made it difficult to sustain the costs of ICAC membership.
“We don’t make enough profit to pay the huge amount. The Nigerian government can also use the textile development levy to defray the cost on our behalf,” he said.
The lack of reliable electricity supply has also affected textile production in Nigeria. Many manufacturers rely on diesel generators, which further increase production costs. This has made it even harder for local manufacturers to compete with countries like China, where power supply is more stable.
Will billions in loans help textile producers?
Last summer, the Nigerian government signed a deal to take out a loan of some $3.5 billion (€3.2 billion) with pan-African African Export–Import Bank to revive the textile industry. Yet, Kwajaffa remains skeptical. He said waiting for funds to arrive is “like waiting for Godot,” as such moves usually stall before they are implemented.
Kwajaffa said representatives of the cotton, textile and garment sector have not seen the loan and have no knowledge of the government’s plans to use it.
The government “always brings up the issue of the budget, and that the budget is not properly financed. So, we are always at a loss,” he said.
