Decline in textile sector persists as GDP contribution falls 3.6% in 2yrs

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By Yinka Kolawole

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

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Data from the National Bureau of Statistics (NBS) shows that the sector’s output has recorded a steady decline over the past three years.

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From N4.548 trillion in 2023, the contribution dropped to N4.476 trillion in 2024, before falling further to N4.384 trillion in 2025. This represents a 3.6 per cent decline between 2023 and 2025.

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The textile sector, once a major economic pillar with over 180 textile mills in the 1980s, is currently in a state of severe decline, with fewer than 20 mills operational.

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Industry analysts attribute the development to a combination of high production costs, unstable power supply, foreign exchange constraints and rising influx of cheaper imported textiles, which continue to squeeze local manufacturers.

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The latest figures indicate that the sector lost about N164 billion in output value within the two-year period, highlighting the pressure on domestic operators struggling to remain competitive.

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Operators have repeatedly warned that the operating environment for textile manufacturers has worsened, forcing several firms to scale down production while others operate far below installed capacity.

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Meanwhile, the federal government has initiated steps to rejuvenate the industry with the unveiling of the Nigeria Industrial Policy 2025, including establishing a Cotton, Textile and Garment Development Board.

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There is also a push to enforce policies like Executive Order 003, which promotes the patronage of locally produced textiles by government agencies.

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The National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN) recently commended the move by the government to revive the industry.

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In a statement, President of NUTGTWN, Peters Godonu, described the proposed board as a landmark initiative signalling government’s commitment to addressing longstanding structural challenges in the sector.

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“These bold and strategic initiatives represent far-reaching measures aimed at accelerating Nigeria’s industrialisation drive and revamping the once vibrant but now challenged textile and garment industry,” he stated.

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