In a strategic move to revive Nigeria’s struggling textile industry and slash its staggering $4 billion annual garment import bill, the Federal Government has announced a renewed commitment to the Cotton, Textile and Garment (CTG) sector. The announcement was made during a high-level stakeholder engagement in Abuja on Wednesday, led by the Minister of State for Industry, Trade and Investment, John Enoh.
The government is partnering with the Bank of Industry (BoI) and other financial institutions to facilitate access to funding and machinery for garment and textile manufacturers. Enoh highlighted the need for urgent intervention to restore Nigeria’s position as a regional textile hub and to promote “Made-in-Nigeria” goods.
“We must ask ourselves: do we prioritise cotton, textile, or garments? The reality is that garments stimulate the entire chain,” Enoh said, citing success stories from Bangladesh, Myanmar, and Kenya, which began by importing textiles but later became major garment exporters.
Reviving a Dormant Giant
The textile industry, once a thriving pillar of Nigeria’s economy, has faced decades of neglect, policy inconsistencies, smuggling, and lack of infrastructure. According to Adenike Ogunlesi, President of the Garment and Accessories Manufacturers Association of Nigeria, past efforts to resuscitate the sector have largely failed.
Despite Nigeria’s $6.8 billion domestic apparel market, the ready-to-wear segment contributes just 2% to the nation’s GDP. Ogunlesi emphasized that capturing even 10% of Bangladesh’s export market could generate $3.3 billion in exports and create over 1 million direct jobs in Nigeria.
A Call for Investment and Policy Reform
Stakeholders urged the government to create favourable policies, particularly through concessional power tariffs and investment incentives. They also recommended the resuscitation of the CTG Fund under the BoI to help firms retool and modernize.
Navdeep Sodhi, Chief Executive of Afroconsulting Trade and Services Limited, stated that the textile and clothing sector is “the cornerstone of industrial development in most developing nations.” Globally, over 100 million people are directly employed in this sector, with millions more working in its value chain.
Despite being the largest market in the ECOWAS region, Nigeria currently imports over 90% of its textiles, much of it through grey channels. Sodhi warned that this not only drains foreign exchange but also denies the country much-needed employment and industrial value addition.
“There is an urgent need to reverse this trend. Nigeria must build a $10 billion textile industry by 2035, supported by political will and a long-term vision,” Sodhi said.
Industry Demands and Policy Recommendations
To enable a robust turnaround, industry players are calling for:
- A five-year tax holiday and VAT exemption on raw materials.
- Import duty waivers on textile machinery and inputs.
- Level playing field for domestic producers through anti-smuggling measures.
- Establishment of industrial parks to host integrated CTG factories.
- Affordable electricity and water infrastructure, especially in manufacturing zones.
As Nigeria prepares for industrial renewal, stakeholders believe that this revitalization of the textile and garment sector can serve as a catalyst for job creation, foreign exchange savings, and inclusive economic growth.
