Once a powerhouse of industry in Africa, Nigeria’s textile sector has been crippled by the influx of cheap Chinese imports, a development that has drastically reduced local production and led to widespread job losses. In the 1990s, Nigeria’s textile industry was booming, providing employment to hundreds of thousands and sustaining vibrant local cotton farming.
“It was full of activities, from Kaduna, Kano, Lagos to Onitsha,” recalled Hamma Ali Kwajaffa, head of the Nigerian Textile Manufacturers Association (NTMA). “Textile factories were everywhere.”
But today, fewer than four textile mills remain, according to Anibe Achimugu, president of the National Cotton Association of Nigeria (NACOTAN). Nigeria still grows cotton, but most of the chemicals, dyes, and synthetic fibers needed for textile production are imported—unlike China, where a fully integrated supply chain keeps costs low. “China already produces all the raw materials,” said Achimugu. “This means they can produce at a cheaper price.”
The devaluation of Nigeria’s currency, the naira, has also driven up the cost of importing materials and equipment, compounding local producers’ woes. Additionally, the lack of reliable electricity has pushed manufacturers to rely on costly diesel generators.
Another issue is the proliferation of counterfeit goods. Many cheap imports mimic Nigerian textile designs, are often made from polyester instead of cotton, and are falsely labeled “Made in Nigeria.” Consumers often blame local producers for poor quality.
A 10% import tax known as the Textile Development Fund Levy, introduced in 1997 to protect local industry, has not benefited manufacturers, Kwajaffa claims. “The money has not reached us,” he said.
The economic consequences have been severe: millions of jobs lost across the textile value chain, and a sharp decline in cotton farming. “The 2024-25 cotton season has been the worst I know,” said Achimugu.
Nigeria has also dropped out of the International Cotton Advisory Committee (ICAC) due to unpaid dues. “We don’t make enough profit to pay. The government could use the levy funds to help,” Kwajaffa said.
Although the government announced a $3.5 billion loan with Afrexim Bank to revive the sector, industry leaders remain skeptical. “It’s like waiting for Godot,” said Kwajaffa. “We haven’t seen the money or any plan to use it.”
With no concrete support, Nigeria’s textile industry continues to lose ground—its revival uncertain in the face of global competition and domestic challenges.
