Nigeria’s once-flourishing textile sector has experienced a significant downturn, with more than 180 textile factories closing their doors in recent years.
The industry has struggled under the pressure of rampant import competition and inconsistent government policies spanning several decades.
Manufacturers face exorbitant borrowing costs, with average interest rates around 32%, and incur massive monthly expenses on diesel and alternative energy sources due to unreliable power supply in industrial zones.
Security challenges in northern Nigeria, where most cotton farmers and textile producers are based, have further exacerbated the sector’s difficulties.
In relatively stable northern states like Kano, Kaduna, and Sokoto, the availability of cotton-a vital raw material for textile production-remains limited.
Farmers have largely abandoned cotton cultivation, as demand from ginneries has dwindled sharply. From over 210 operational ginneries in the 1980s, fewer than 15 remain active today in a country with a population exceeding 200 million.
Local textile producers also suffer from weak patronage by Nigerian consumers and insufficient support from both state and federal governments, despite public calls encouraging citizens to buy locally made products.
Once a major employer of over 500,000 people along the value chain, the textile industry has been overwhelmed by cheap imported fabrics, which local manufacturers cannot compete with due to the combined challenges mentioned.
Aliko Dangote, president of the Dangote Group and a leading industrialist, emphasizes that Nigeria must prioritize domestic manufacturing to safeguard jobs and stimulate economic growth.
The Nigeria First policy, which aims to boost local production and consumption, is critical for rejuvenating the manufacturing sector and achieving sustainable economic development.
Revitalizing local industries requires more than protectionist tariffs; it demands strategic investments in infrastructure, technology, raw materials, and workforce skills to enhance competitiveness, Dangote asserts.
Speaking at the 5th Adeola Odutola lecture in Lagos, Dangote described the Nigeria First policy as a bold step toward sustainable industrialization.
He highlighted that the policy’s success hinges on robust legislation, effective enforcement, consistent policy application, and strong coordination between government bodies and the private sector.
Countries like China, South Korea, Indonesia, and Malaysia demonstrate that a solid manufacturing foundation is essential for job creation, innovation, and export-led growth.
India’s “Make in India” initiative serves as a prime example of how targeted policies can expand manufacturing capabilities and attract foreign direct investment.
Since its launch in 2014, the policy has significantly increased India’s capacity in the Original Equipment Manufacturer (OEM) market and boosted foreign investment inflows.
Abhishek Singh, India’s High Commissioner to Nigeria, noted during the lecture that Indian companies have dramatically scaled up their production capabilities. “Previously, fulfilling an order for 50 transformers was challenging for many Indian firms. Today, they can easily handle orders of 5,000 units,” he explained.
The Manufacturers Association of Nigeria (MAN) views the Nigeria First policy as a transformative opportunity to enhance the country’s manufacturing sector and improve citizens’ livelihoods.
Francis Meshioye, MAN’s president, described the policy as an economic imperative rather than mere aspiration.
He criticized the longstanding reliance on import-dependent development models and weak enforcement of local content policies, which have hindered industrial resilience and inclusive growth.
“Without deliberate support for domestic manufacturers, Nigeria cannot compete effectively on the global stage,” Meshioye warned.
He added that it is unsustainable for Nigeria to subsidize foreign production and employment through unchecked imports while local factories operate below capacity and underperform.
MAN advocates that the Nigeria First policy should focus on building national resilience, generating local employment, conserving foreign exchange, fostering technological innovation, and establishing a productive base for global competitiveness.
“Every industrialized nation began by nurturing local industries and leveraging public and private procurement to scale production and drive economic progress. Nigeria must follow this proven path,” Meshioye emphasized.
To create a resilient, inclusive, and forward-looking economy that attracts investment, Nigeria must embark on a deliberate re-industrialization journey, starting with strong support for its local manufacturers.