What’s the link between Nigeria’s textile industry and the nation’s rise as a football powerhouse? Fans of Nigerian football trivia might recall that Rashidi Yekini, Nigeria’s all-time leading goal scorer, began his career at United Nigeria Textiles Ltd (UNTL) FC in Kaduna in 1982.
This was when private companies regularly sponsored local football clubs, contributing to the sport’s growth in a talent-rich but resource-scarce nation.
Ironically, as Nigeria’s Super Eagles ascended on the global stage, with highlights like winning the African Cup of Nations in 1994 and an Olympic gold medal in 1996, the country’s once-thriving textile sector faced a dramatic decline.
During this period, textile companies that had been key economic drivers and significant employers of labor started to crumble.
Between 1994 and 2005, Nigeria saw 64% of its registered textile companies shutter, dropping from 125 to just 45. By 2022, fewer than 20 textile companies remained. Back in 1985, there were 175 firms with robust balance sheets and thousands of employees.
“Employment in the sector dropped sharply from 137,000 jobs in 1996 to just 24,000 in 2008,” says Folorunsho Daniyan, president of the Nigerian Textile Manufacturers’ Association (NTMA). “As of 2022, the industry employed fewer than 20,000 people.”
The Multifaceted Decline
The collapse of Nigeria’s textile industry can be traced back to several key factors, starting with the devaluation of the naira in the 1980s. NTMA’s Director General, Hamma Kwajaffa, points out that many textile manufacturers struggled to repay foreign loans due to soaring exchange rates. “From N3 to the US dollar, the rate shot up to N30 by 1985, creating survival challenges,” he notes.
This financial squeeze was compounded by competition from cheaper foreign-made fabrics. “The liberalized, free-market economy led to dumping and smuggling of low-cost goods into Nigeria, well below domestic textile production costs,” says Kwajaffa. This influx was a major factor in the industry’s decline.
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Abubakar Musa Bunza, a lecturer in the Department of Polymer and Textile Engineering at Ahmadu Bello University, Zaria, offers a broader view. He attributes the sector’s collapse to unsustainable electricity costs, corruption, labour disputes, poor-quality raw materials, and the lack of regulatory oversight. “Successive governments failed to address these systemic issues,” he says.
Failed Revival Efforts
Despite periodic government intervention, the textile sector’s recovery has been elusive. Former President Goodluck Jonathan’s administration provided N60 billion in loans to revive the sector, while the Buhari administration allocated N294 billion. However, these funds had little impact.
Recently, Vice President Kashim Shettima announced that the Tinubu administration is collaborating with the International Cotton Advisory Committee (ICAC) to revive the textile sector and create 1.4 million jobs annually.
“The Tinubu administration will harness opportunities in the cotton value chain to ensure Nigeria regains its ICAC membership,” Shettima stated. Trade and Investment Minister Doris Uzoka-Anite added that Nigeria has secured a $3.5 billion investment for the sector’s revival.
Calls for Strategic Change
Scepticism remains regarding the effectiveness of government initiatives, given the history of similar efforts. “Without addressing the root problems, any intervention is likely to fail,” says Bunza. He advocates for solutions such as affordable, sustainable electricity, a balanced import-export policy favouring local manufacturers, and engaging academia in research. He also recommends establishing a textile research council to spearhead innovation and development.
Kwajaffa suggests Nigeria should look to emerging economies with successful textile industries for inspiration. “Countries like India and Bangladesh have built thriving textile sectors by creating conducive environments for local manufacturers. Nigeria can do the same,” he asserts.
Currency Devaluation and Its Impact
The floating of the Nigerian naira in 2023, which led to its depreciation from N700 to N1,600 per dollar, has further compounded the sector’s challenges. “Devaluing the naira turns us into a consumer nation,” warns Kwajaffa.
“It makes us uncompetitive and hinders our ability to export,” Bunza adds that currency devaluation affects the cost of importing raw materials and equipment, critical components for textile production.
With rising costs, demand for textiles has fallen. “Fabrics that were once affordable are now a luxury,” says Aisha Mohammed, a store owner in Abuja. She notes that high prices have significantly reduced customer demand.
Some analysts believe the industry must pivot and explore markets beyond African prints. Diversifying product offerings and targeting export markets could provide a pathway to recovery, revitalizing a sector that once stood as a symbol of Nigeria’s industrial strength. ~TRT Afrika
