…N814bn spent on textiles abroad in 9 months
Onome Amuge
Once a cornerstone of the country’s industrial ambition, the textile industry is facing a deepening crisis as local production falters and imports soar. Data from the National Bureau of Statistics (NBS) shows that in the first nine months of 2025, the country imported textile and textile articles worth N814.27 billion ($1.8 billion), representing a 47.4 per cent increase compared with the same period in 2024. Despite repeated government pledges to revive the sector, the increase in imports showcases the structural weaknesses of the domestic industry and the limits of policy interventions that have remained largely rhetorical.
A quarterly breakdown underscores the scale of the challenge, with textile imports valued at N228.83 billion in the first quarter, rising to N337.12 billion in the second, before easing to N248.32 billion in the third. Analysts argue that these figures point to a deepening reliance on foreign fabrics, as domestic manufacturers struggle to compete on quality, pricing, and supply consistency.
Industry operators and stakeholders have pointed to a series of systemic failures, from inconsistent policy implementation to weak institutional support, poor financing, and corruption, as key reasons behind the decline of Nigeria’s textile sector. “The rising import bill is a clear indication that government policies on textile revival have remained largely rhetorical,” said Hamma Kwajaffa, director-general of the Nigerian Textile Manufacturers Association (NTMA).
Policy promises vs. ground reality
The federal government has consistently signalled its commitment to revitalising the textile industry. In August 2024, Vice-President Kashim Shettima urged stakeholders to develop a roadmap for reviving cotton and textile production, citing collaboration with the International Cotton Advisory Committee. Earlier in April, the Ministry of Industry, Trade and Investment announced plans to localise up to $4 billion in spending on textile imports,while John Enoh, minister of state for industry, outlined initiatives to promote local garment procurement and facilitate access to finance and machinery through the Bank of Industry (BOI).
Yet, as stakeholders note, these initiatives have failed to materialise effectively on the ground. Textile operators report that while the government has conducted workshops, roadshows, and plant tours, including a high-profile facility visit in Kaduna State, there has been little tangible impact on production capacity, supply chain development, or competitiveness.
Kwajaffa remarked, “We’re tired of all these workshops where the communiqués end up as dust in the drawers of civil servants. Announcements without execution have yielded no outcome for the industry.”
A critical instrument intended to support the sector (the 10 per cent textile levy introduced when import bans were lifted), has failed to achieve its purpose. The levy was designed to be reinvested in the local industry to enhance competitiveness and reduce dependency on imports. However, stakeholders say the proceeds have largely been absorbed into general government revenue rather than being channelled into a dedicated development fund.
“The essence of the levy was that 10 per cent should be ploughed back into textiles to make local manufacturers competitive. But once the money comes in, the government treats it as its own and refuses to release it for industry development,” Kwajaffa explained.
By contrast, other sectors such as sugar have benefited from dedicated levy-backed development funds, supported by functional councils and political backing. Kwajaffa called for the creation of a similar textile development fund domiciled with the BOI, arguing that such a structure could provide loans, grants, and operational support for struggling manufacturers.
Credit access and corruption: The twin hurdles
Even where credit schemes exist, corruption has frustrated their intended impact. Kwajaffa alleged that kickbacks and selective allocation have undermined grant and loan programmes, preventing manufacturers from accessing the support needed to modernise production or expand operations. “Mostly the problem with the grant is that they want to get their own share first. Once the companies do not have a share, the programme is effectively killed. Corruption is killing everything. Nothing is moving for the interest of the generality of the Nigerian populace,” the director-general of the Nigerian Textile Manufacturers Association said.
Access to affordable finance is critical in a sector that requires significant capital for modern machinery, energy-efficient production, and supply chain integration. Yet industry operators say that weak execution of credit initiatives, combined with policy incoherence, has left manufacturers unable to scale. “Vice President Shettima is speaking on a different level; the Minister of State for Industry, is speaking differently. That’s how things don’t work,” Kwajaffa noted, highlighting the confusion stemming from conflicting official statements.
Underlying these governance challenges are structural weaknesses in Nigeria’s cotton and polyester value chains. Cotton farming remains smallholder-based, poorly mechanised, and vulnerable to insecurity, making reliable raw material supply a persistent challenge. Kwajaffa highlighted the absence of agricultural extension support due to funding gaps and security concerns, noting; “cotton is a scientific product. The farmer has to be tutored. Extension officers cannot even go to the field because of insecurity.”
Moreover, while Nigeria is a crude oil producer, local textile manufacturers struggle to access competitively priced polyester, which is essential for modern garment production. This paradox further undermines local competitiveness, making imports a more viable option for both manufacturers and end consumers.
The implications of rising imports extend beyond raw economic metrics. Segun Ajayi-Kadir, director-general of the Manufacturers Association of Nigeria (MAN), warned that the influx of foreign textiles continues to undermine local production. “These products are virtually dumped into the market to overrun domestic manufacturers,” he said. Local firms have reportedly faced high operational costs, inconsistent electricity supply, and infrastructural deficits, creating an environment where survival is increasingly difficult.
Historically, Kaduna State was home to at least six MAN-member textile companies. Today, according to Ajayi-Kadir, that number has fallen to zero. Even backward integration into cotton production has suffered, as domestic farmers opt to export raw cotton rather than supply local manufacturers at uncompetitive prices. The collapse of domestic production has wider implications for employment, with the sector previously providing millions of jobs across farming, processing, and garment production.
The Cost of Imports
Rising imports carry both fiscal and economic costs. While foreign fabrics temporarily fill the supply gap, they contribute to a negative trade balance and discourage domestic investment. The N814 billion spent on textile imports in the first nine months of 2025 represents money leaving the country, money that could otherwise have been invested in modernising local factories, building infrastructure, or improving farmer support systems.
Kwajaffa stressed that if current trends continue, the domestic textile industry risks becoming entirely import-dependent. “If imports continue rising and there is nothing to enable local firms to compete, the pattern will persist. The government has the 10 per cent textile levy to fund industry development, but the problem is implementation,” he said.
Lessons for policy and industrial strategy
The Nigerian textile crisis underscores the broader challenges of industrial policy in emerging markets. Policy pronouncements, high-profile visits, and stakeholder workshops are insufficient without coherent institutional frameworks, transparent funding mechanisms, and consistent enforcement.
Experts argue that reviving the textile industry requires an integrated approach: securing raw material supply through investment in cotton farming and synthetic fibres, providing transparent access to finance, modernising manufacturing facilities, and ensuring that fiscal incentives are effectively channelled to firms rather than dissipated through administrative inefficiencies.
The contrast with other sectors, such as sugar, illustrates that dedicated funds coupled with political backing can work. A textile development fund at the BOI, combined with institutional reforms to reduce corruption and improve credit allocation, could help domestic manufacturers scale, improve product quality, and compete with imported fabrics.
Looking Ahead
The government is confronted with a clear trade-off: Pursue a coherent, adequately funded strategy to revive the industry, or risk a continued contraction of the textile sector alongside rising imports. As domestic production remains weak and the import bill expands, the price of inaction is substantial, extending beyond macroeconomic indicators to jobs, innovation, and the country’s industrial capacity.
Kwajaffa remains cautiously hopeful but realistic. “The potential is there. Nigeria has the raw materials, the workforce, and the market. But without clear policy execution, transparency, and dedicated funding, the industry will continue to be dominated by imports,” he said.
For a country that once aspired to regional leadership in textiles, the current trajectory is considered worrisome. The rising N814 billion import bill is not merely a statistic; it is a symptom of systemic weaknesses, policy failures, and missed opportunities. According to analysts, whether Nigeria can turn these challenges into a sustainable revival of its textile sector will depend on the government’s willingness to prioritise execution over rhetoric and build institutions capable of supporting competitive domestic manufacturing.
Until then, foreign fabrics are likely to remain the backbone of Nigeria’s clothing market, a sobering reminder that industrial revival requires more than promises; it requires governance, financing, and structural reform working in tandem.
Gold holds near record as rate-cut bets support weekly gain
Onome Amuge
Gold prices were steady and on course for a weekly gain, while silver and platinum outperformed, trading close to record highs as investors sought the relative safety of precious metals amid growing economic uncertainty.
Spot gold was little changed at $4,332.67 an ounce, holding near an October record, while February futures were flat at $4,364.20 an ounce. Bullion has risen by just under 1 per cent over the week, supported by softer-than-expected US consumer price data for November, which reinforced expectations that the Federal Reserve could cut interest rates further.
Some analysts, however, urged caution in interpreting the inflation figures. They noted that the November data may have been distorted by the prolonged US government shutdown in October and early November. Goldman Sachs said December’s CPI release was likely to offer a clearer signal on the inflation trajectory and monetary policy, adding that the November reading was unlikely to materially influence the Fed’s outlook.
Safe-haven demand was further underpinned by uncertainty around the US economy after an unexpected rise in unemployment raised concerns about stagflation risks. Beyond near-term data, the broader outlook for gold remains supportive, with persistent demand from central banks, resilient exchange-traded fund inflows and ongoing geopolitical tensions. Frictions between the US and Venezuela, alongside the continuing war in Ukraine, have added to gold’s appeal.
Goldman Sachs said it expects gold prices to rise 14 per cent to $4,900 an ounce by December 2026 in its base case, while flagging upside risks if diversification into gold broadens among private investors. In a note outlining its commodities outlook for 2026, the bank pointed to structurally high central bank demand and cyclical support from anticipated US rate cuts, and reiterated its recommendation for long positions in the metal.
Silver and platinum, however, outpaced gold both on the day and over the week. Spot silver climbed 1 per cent to $65.89 an ounce, extending its fourth consecutive weekly gain and lifting its weekly increase to 6 per cent. Spot platinum rose 0.5 per cent to $1,971.25 an ounce, up more than 11 per cent over the week.
Demand for both metals has strengthened in recent weeks as investors look for exposure to tangible assets amid concerns over slowing growth in advanced economies. While offering haven characteristics similar to gold, silver and platinum remain relatively cheaper, particularly after gold’s strong rally over the past year. Expectations of supply tightness in the year ahead have further supported prices.
