Activities in Nigeria's cotton, textile and garment industry continued to trend downward in 2025, with the industry's GDP contribution declining to N4.384 trillion, reflecting persistent structural challenges confronting the sector.

The once-vibrant hum of Nigeria’s textile mills continues to fade, painting a stark picture of an industrial giant brought to its knees by systemic inefficiencies. Official data reveals a devastating 3.6 percent contraction in the sector’s output over the last two years.

This decline is not just a localized economic slump; it is a profound cautionary tale for industrialization efforts across Africa. As Kenya pushes to revitalize its own textile industry through initiatives like the revival of Rivatex and investments in Export Processing Zones (EPZs), the structural pitfalls strangling Nigeria’s garment sector offer critical lessons for policymakers in Nairobi and beyond.

A Sector in Freefall

According to the National Bureau of Statistics (NBS), the textile sector’s contribution to Nigeria’s Gross Domestic Product (GDP) dropped from N4.548 trillion in 2023 to N4.384 trillion in 2025. This equates to a staggering loss of approximately N164 billion in output value. For a sector that once boasted over 180 operational mills in its 1980s heyday, the current reality of fewer than 20 functioning factories is a tragic regression.

The collapse is driven by a perfect storm of operational nightmares. Manufacturers are battling exorbitant production costs, largely fueled by an unstable national power grid that forces reliance on expensive diesel generators. Compounding this is a severe foreign exchange constraint that makes importing essential machinery and raw materials nearly impossible.

The Threat of Cheap Imports

Perhaps the most lethal blow has been the unchecked influx of cheaper, imported textiles, primarily from Asia. Local manufacturers simply cannot compete on price. This exact dynamic has historically plagued the East African market, where local Kenyan artisans and factories have long fought against the tidal wave of cheap second-hand clothing (mitumba) and subsidized Asian imports.

• Over 160 textile mills have shut down since the 1980s.
• Sector lost N164 billion in output value over two years.
• High energy costs and forex scarcity cited as primary killers.

Policy Interventions on the Horizon

In a desperate bid to staunch the bleeding, the Nigerian federal government has unveiled the Nigeria Industrial Policy 2025. Key among its provisions is the establishment of a Cotton, Textile and Garment Development Board. Furthermore, the government is pushing Executive Order 003, which mandates government agencies to patronize locally produced textiles—a move mirroring Kenya’s "Buy Kenya, Build Kenya" initiative aimed at bolstering domestic manufacturing.

However, industry operators remain skeptical. They warn that without addressing the foundational issues of power supply and currency stability, policy edicts will remain toothless. The operating environment must fundamentally improve for domestic operators to regain a competitive edge.

As the continent looks toward the promise of the African Continental Free Trade Area (AfCFTA), the revitalization of indigenous manufacturing is paramount. "The operating environment for textile manufacturers has worsened, forcing several firms to scale down production," an industry analyst warned, signaling that immediate, structural reform is no longer optional, but vital for survival.