Textile industry faces total collapse as revival efforts fail

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Nigeria’s textile industry is now gasping for breath following the failure of revival measures, a sustained upsurge in the importation of textile products and a series of adverse monetary policy regimes.

•Sector’s GDP contribution in steady decline ·96.5% of textile products in Nigerian market imported •Market flooded with faked fabrics from China

Financial Vanguard also learnt that only about five textile mills are still operational today while the cotton production value chain has vanished. The labour force is also down to less than 2,000, both direct and indirect. In 2019, NBS reported that N220.5 billion worth of textile products were imported into the country; N182.5 billion in 2020; N278.8 billion in 2021, and N365.5 billion in 2022.On the other hand, textile exports, mostly cotton and apparels, within the period was N3.3 billion in 2019; N6.0 billion in 2020; N12.3 billion in 2021; N10.3 billion in 2022; and N18.8 billion in 2023.

Data from NBS shows that the sector’s contribution to GDP in 2019 was 2.02 percent ; 1.9 percent in 2020; 1.82 percent in 2021; 1.72 percent in 2022; and 1.63 percent in 2023. The State Commissioner for Culture and Tourism, Sesan Fagbayi, disclosed this at an Adire exhibition in Lagos. “The incessant increase in monetary policy rate has exacerbated the cost of doing business, thereby worsening competitiveness of Nigerian products in the global market, leading to dumping of cheaper goods in Nigeria,” he added.As a way out, Ajayi-Kadir called for the enforcement of Executive Order 003.

“It could deliberately facilitate backward integration and ensure a friendlier operating environment that will encourage expansion and inflow of fresh investments. Also reviewing the plight of the sector, the immediate past President of the National Union of Textile Garment and Tailoring Workers of Nigeria , John Adaji, also called for the enforcement of Executive Order 003, adding that the textile industry is capable of creating 2 million jobs.

He maintained that Executive Order 003 which mandates Ministries, Departments and Agencies of government to spend more of their budgets on locally produced goods was a bold and courageous move to enhance the growth of the nation’s manufacturing sector and economy that if fully implemented.In the meantime, the Federal Government has commenced moves aimed at revamping the cotton, textile and apparel industry in Nigeria in collaboration with development partners and the private sector.

 

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