Nigeria’s once-thriving textile and footwear industry continues to grapple with significant challenges, as recent data reveals a persistent decline in its contribution to the nation’s Gross Domestic Product (GDP) over the past five years.
Despite a marginal increase in export value—largely attributed to currency depreciation—industry insiders warn that the sector’s foundation remains shaky due to structural issues and policy failures.
According to figures from the National Bureau of Statistics (NBS), the combined textile and footwear sector contracted by 8.1 percent from N1.332 trillion in 2020 to N1.224 trillion in 2024.
The annual breakdown paints a consistent picture of decline: a 1.27 percent drop in 2021 (N1.315 trillion), followed by a 2.23 percent fall in 2022 (N1.286 trillion).
The contraction deepened in 2023, plunging 3.06 percent to N1.247 trillion, and a further 1.8 percent decline brought the value down to N1.224 trillion in 2024.
This downward spiral is also evident in the sector’s shrinking share of the national GDP. It fell from 1.9 percent in 2020 to 1.82 percent in 2021, then to 1.72 percent in both 2022 and 2023, before slipping again to 1.63 percent in 2024.
While the export figures show a nominal rise, experts caution that this growth is more reflective of naira devaluation than an increase in production or competitiveness.
“When you adjust for inflation and currency depreciation, the actual growth is negligible,” said Dr. Chidi Nwankwo, an economist specializing in industrial development. “The numbers may look better on paper, but they don’t translate into real gains for local manufacturers.”
Stakeholders point to a range of issues hobbling the sector, including rampant smuggling, the influx of counterfeit products, and dilapidated infrastructure.
“Uncontrolled importation is killing local production,” said Abdulrahman Ibrahim, President of the Nigerian Textile Manufacturers Association (NTMA).
“Our factories are competing with cheap, often substandard goods smuggled in from abroad, mostly from Asia. It’s an uneven playing field.”
The situation is further compounded by chronic energy shortages, unreliable transport networks, and limited access to affordable financing. For many industry players, the high cost of doing business in Nigeria is proving unsustainable.
“There are local manufacturers who’ve had to shut down or drastically scale back operations because they simply cannot compete,” added Ibrahim.
“The government needs to enforce border controls, strengthen intellectual property laws, and invest in infrastructure if the sector is to survive.”
Despite the gloom, some experts believe the sector still holds potential. With over 200 million people and a vibrant youth population, Nigeria remains a potentially strong market for textiles and apparel.
“What we need is a deliberate industrial policy tailored to revive and protect local manufacturing,” said Nwankwo.
Until then, however, the textile industry may continue to struggle on the domestic front—even as its export figures offer a deceptive glimmer of hope.
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