Nigeria's Textile Industry: Past Glory and Current Challenge

Nigeria's Textile Industry: Past Glory and Current Challenges

The Nigerian textile industry experienced its golden age between the 1950s-1980s, when it operated 180 mills employing over 450,000 workers - making it the nation's second-largest employer after government. The northern city of Kaduna emerged as the industrial hub, with British technology transfer helping establish major factories like Kaduna Textiles Limited and United Nigerian Textiles Limited. At its peak, the sector contributed significantly to GDP and accounted for 25% of manufacturing employment.

However, the industry entered a steep decline from the 1980s due to multiple factors:

• Chronic power shortages and infrastructure decay

• Smuggling of cheaper Asian textiles

• Policy inconsistencies and trade liberalization

• Declining local cotton production

• Obsolete manufacturing equipment By 2025, only about 25 textile mills remain operational from the original 180, with Nigeria now spending $4 billion annually on textile imports.

Government Revival Efforts and Current Status

The Nigerian government has implemented several measures to revive the sector:

1. Financial Interventions: Establishment of a ₦100 billion Textile Intervention Fund in 2009 offering loans at 6% interest, with additional funds approved in 2025.

2. Local Content Policies: Mandating government agencies to procure locally-made textiles.

3. Industrial Parks: Development of textile clusters in Kaduna and Ogun State's planned 40,000-employee textile park.

4. Import Restrictions: Banning certain textile imports to protect local producers.

These measures have yielded mixed results. While some factories have reopened, challenges persist with electricity (only 4,000MW for 200 million people), financing, and global competition. Notably, Nigerian designers now create patterns domestically but outsource production to China due to limited local capacity.