Nigeria's Textile Revival Lags as Imports Surge to N814bn in Two Years

June 12, 2026 4 min read

Nigeria's ambitious textile industry revival has failed to gain traction two years after the Federal Government launched its flagship programme to resuscitate the sector. Official trade data shows that textile and clothing imports into Africa's largest economy have climbed to N814 billion, a figure that industry insiders say exposes the persistent weakness of domestic manufacturing capacity despite official interventions.

Federal Revival Plan Falls Short After Two Years

When the Federal Government unveiled its textile sector strategy in 2022, officials projected a dramatic reduction in import dependency within 24 months. The plan included tariff adjustments, credit facilities for manufacturers, and targeted support for mills in key production zones. Two years later, those targets remain largely unmet. Instead of declining, import volumes have continued their upward trajectory, crowding out local producers who say they cannot compete on price or volume.

The Ministry of Industry, Trade and Investment has acknowledged the shortfall in internal reviews, according to officials who spoke on condition of anonymity. The ministry's official statements have become more cautious in recent months, shifting from bold projections to vague commitments about "ongoing work."

N814bn Import Bill Exposes Sector Weakness

The N814 billion import figure represents a significant portion of Nigeria's total merchandise import bill and underscores the scale of the challenge facing domestic producers. The bulk of these imports originate from Asian manufacturers, particularly China and India, who dominate global textile supply chains with cost structures that Nigerian factories struggle to match.

In Kano, once home to a thriving textile cluster, several mills that received government support under the revival programme have scaled back operations or suspended production entirely. Industry sources in the city say energy costs, machinery maintenance, and the availability of skilled labour have all contributed to operational difficulties that the policy interventions failed to adequately address.

Local Manufacturers Struggle to Compete

Small and medium-scale textile enterprises across Nigeria describe a punishing operating environment that has worsened since the revival programme launched. A manufacturer in Lagos noted that imported fabrics arrive at wholesale prices that local producers cannot match after factoring in production costs, import duties, and distribution margins.

The Nigeria Textile Manufacturers Association has submitted multiple representations to the Federal Government requesting emergency intervention. The association's leadership has called for stricter enforcement of import documentation requirements and a review of duty structures that they argue still favour foreign suppliers over domestic industry.

Production Capacity Remains Underutilised

Capacity utilisation across Nigeria's textile sector has hovered below 40 percent for most of the past two years, industry data shows. Several large-scale facilities that were targeted for rehabilitation under the revival plan remain either shuttered or operating at minimal output. The situation has contributed to job losses in a sector that once employed hundreds of thousands of workers across the country.

What Went Wrong With the Textile Strategy

Analysts point to several structural issues that the Federal Government's programme did not adequately address. The exchange rate volatility that has characterised Nigeria's currency market since 2023 has made imported raw materials more expensive for manufacturers while simultaneously making foreign textiles more competitive in naira terms. This paradox has undermined the intended effect of protective measures.

Infrastructure deficits also feature prominently in assessments of the programme's shortcomings. Reliable power supply remains a persistent challenge for industrial users, forcing many factories to rely on diesel generators that substantially increase operating costs. Transport logistics connecting production centres to major consumer markets add further expense that erodes the competitiveness of domestically manufactured goods.

What's Next for Nigeria's Textile Sector

The Federal Government has signalled that a revised policy framework is under consideration, though officials have not committed to a specific timeline for announcement. Trade ministry representatives have indicated that upcoming interventions will place greater emphasis on addressing the cost-of-production challenges that manufacturers have consistently raised.

Some industry observers have called for a more comprehensive approach that goes beyond tariff adjustments and credit facilities. Recommendations circulating among policy advocates include skills development programmes targeting textile production techniques, infrastructure investment specifically designed for industrial textile clusters, and targeted procurement policies that prioritise domestically manufactured fabrics for government institutions.

Industry Leaders Push for Policy Overhaul

The tension between import liberalisation commitments under regional trade agreements and domestic industrial policy objectives has emerged as a complicating factor in textile sector discussions. Trade officials have hinted at potential adjustments to the Common External Tariff framework that could provide Nigeria with more flexibility to protect infant textile industries, though no formal proposals have been tabled.

As the third year of the revival programme approaches, textile sector stakeholders are watching for concrete signals from the Federal Government. Industry associations have scheduled a summit for the coming months where they intend to present a consolidated set of demands, including calls for emergency tariff reviews and expedited access to credit facilities for operational upgrades. The outcome of those discussions could determine whether Nigeria's textile revival ultimately recovers from its sluggish start or continues to lag behind the N814 billion import tide.