Nigeria’s Textile Sector Continues Downward Trend, GDP Contribution Falls 3.6% in 2 Years
Nigeria’s cotton, textile, and garment industry is facing significant challenges, with its contribution to the nation’s Gross Domestic Product (GDP) declining to N4.384 trillion in 2025, representing a 3.6% decline between 2023 and 2025. Data from the National Bureau of Statistics (NBS) shows a steady decline in the sector’s output over the past three years, from N4.548 trillion in 2023 to N4.476 trillion in 2024, and further to N4.384 trillion in 2026
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. Industry analysts attribute this to high production costs, unstable power supply, foreign exchange constraints, and the rising influx of cheaper imported textiles, which continue to squeeze local manufacturers.
The sector lost about N164 billion in output value within the two-year period, highlighting the pressure on domestic operators struggling to remain competitive. 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.
The federal government has initiated steps to rejuvenate the industry, including establishing a Cotton, Textile, and Garment Development Board and enforcing policies like Executive Order 003, which promotes the patronage of locally produced textiles by government agencies.
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