Textile Revival Hope Dims as Imports Overwhelm Sector

Dike Onwuamaeze and Sunday Ehigiator

Despite various initiatives by the federal government to revive the textile sector, the importation of fabrics from China, India, and Turkey, among others still dominates various markets in Lagos, THISDAY findings revealed.

At some popular textile markets in Lagos, such as Oshodi; Tejuosho Ultra-Modern Market in Yaba and Balogun in Lagos Island, THISDAY findings showed that most of the materials were imported.
Decades of neglect, policy inconsistencies, and the influx of cheap imports have left local textile manufacturers struggling to survive. The consequences are far-reaching, affecting not only the economy but also the livelihoods of thousands of Nigerians.

Despite various initiatives by the federal government as well as intervention funds by the Central Bank of Nigeria meant to revive the sector, imported fabrics from China, India, and Turkey, among others, still dominate various markets in Lagos.
In the sixties and seventies, Nigeria’s textile industry was a beacon of hope, providing employment opportunities for millions and contributing significantly to the country’s GDP. The sector was dominated by iconic brands like Nigerian Textile Mills (NTM), United Textile Industries, and Aswad Textile Mills.
Speaking with THISDAY on how to overcome some of the challenges facing the sector, the President, National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), Godonu Peters Honfu noted that, “To revitalise the sector, the government must create an industrial-friendly environment. This includes addressing issues such as high tariffs, electricity shortages, infrastructure deficits, and double taxation.

“Nigeria has a significant market with over 200 million people, but manufacturers struggle to tap into it due to unfavourable business conditions. The demand for textiles is high, especially with Nigeria’s vibrant fashion industry.
“Also, the textile industry relies on various raw materials, including cotton, ink, paint, and chemicals, most of which are imported. This exposes manufacturers to exchange rate fluctuations and increased costs. A stable and affordable electricity supply is crucial for the industry’s survival.”
Speaking further, he said: “The national grid’s frequent collapse exacerbates the situation, frustrating businesses and leading to factory closures. This instability makes it difficult for manufacturers to operate efficiently.

“To revive the textile industry, the government must prioritise infrastructure development, provide affordable electricity, streamline taxation policies, and offer incentives for local manufacturers. This will enable Nigeria to tap into its vast market potential and become a competitive player in the global textile market.
“The government can take the following steps to address these challenges. First, conduct a comprehensive review of the textile industry’s challenges. Then, develop and implement policies addressing infrastructure deficits, electricity shortages, and taxation.
“Provide incentives for local manufacturers, such as tax breaks, subsidies, and low-interest loans, will also encourage growth. Investing in vocational training programs for textile workers and establishing partnerships with international textile companies will attract investment.
“Encouraging private sector participation in textile production and monitoring progress will ensure the industry’s revival.

“To boost Nigeria’s economy, the government should prioritise creating an industrialized environment that fosters business growth and competition. This can be achieved by addressing pressing issues such as high taxes, inadequate electricity supply, and unfavourable policies.
“The government’s Executive Order 003, which promotes local content, is a step in the right direction. However, its implementation and monitoring are crucial to ensure success.
“For instance, if the military alone commits to using made-in-Nigeria uniforms, it could revitalise the textile industry, potentially leading to the resurgence of over 20 companies.
“Currently, only one company, Sunflag Nigeria Ltd, enjoys this privilege, catering solely to the Nigeria Army.

“Expanding this initiative to other sectors, such as Customs, Immigration, Civil Defence, Police, and schools, could significantly stimulate local production. By looking inward and promoting made-in-Nigeria goods, the country can reduce reliance on imports and foster economic growth.
“So those are the major challenges. The government needs to look into it. Let’s make a policy that will work for us, a policy that will be implemented at the end of the day, and will be monitored. Let all the stakeholders be involved.

“The employer, the employee, the government, the agencies, and the public, be involved in the enforcement, so that nobody will just wake up one day, go outside the country, and come and dump material in Nigeria, and start selling to us. Let us prioritise made in Nigeria, sell made in Nigeria and buy made in Nigeria.”
Reacting to the dominance of imported textiles in the Nigerian markets, the President of the Nigerian Textile Manufacturers Association (NTMA), Mr. Foloronsho Daniyan, told THISDAY that the situation was created by massive shutdowns of textile manufacturing industries in Nigeria, unmitigated wholesale smuggling of textile materials into the country and remarkably worsened Nigerian operating environment.

Daniyan said: “Most of the textile industries in Nigeria have shut down. There are just very few that are still producing fabrics.
“There is also unmitigated smuggling across the northern borders into markets in Kano State and those smuggling textile through the Republic of Benin.
“So, there is no way the local textile manufacturing industries will survive.
“We have been agitating for the federal government and the Nigerian Customs Service to get serious with addressing smuggling and for the government to provide the enabling environment.
“The Asian countries are known for subsidising their textile industries, especially in terms of power supply.

“But with about 10,000 megawatts of power for the whole Nigeria, I do not see any industry that will be competitive.”