Nigeria's textile sector has experienced a notable decline, with its GDP contribution decreasing by 3.6% over the past two years due to ongoing structural challenges.
The textile sector in Nigeria is facing severe challenges, continuing its downward trend as evidenced by the significant drop in its contribution to the nation's Gross Domestic Product (GDP). As reported by the National Bureau of Statistics, the sector's output has decreased from N4.548 trillion in 2023 to N4.384 trillion in 2025, marking a total decline of 3.6% over this period. This persistent downturn highlights the ongoing structural issues that plague the industry, which was once a vital part of Nigeria’s economy.
Historically, Nigeria's cotton, textile, and garment industry was thriving, boasting over 180 operational textile mills in the 1980s. However, the industry has contracted dramatically, with fewer than 20 mills currently in operation. Analysts point to multiple factors contributing to this decline, including high production costs, unstable power supply, foreign exchange constraints, and an increasing influx of cheaper imports, which have made it difficult for local manufacturers to compete.
The decline of this sector is not just an economic issue, but also a significant concern for employment and local economies. As the textile industry wanes, it risks displacing thousands of workers and further straining Nigeria’s economic landscape. Without intervention to address these structural challenges, the sector’s revival appears unlikely, posing risks for Nigeria’s agricultural sector, particularly cotton production, which is integral to the industry’s sustainability.
