Investigations conducted by LEADERSHIP Sunday have revealed that despite a staggering investment of over $1.18 billion (equivalent to N500 billion based on prevailing exchange rates) in the Nigerian textile industry, it continues to struggle and remains largely inactive.
This challenge of revitalizing the industry is not unique to the current administration led by President Bola Ahmed Tinubu, as previous governments have also grappled with this issue. The textile industry, particularly in Northern Nigeria, has the potential to create employment opportunities and alleviate insecurity concerns in the region.
The global textile industry is valued at $920 billion and is projected to reach $1.23 trillion by 2024. Dominated by countries such as China, the United States, the European Union, and India, other significant players include Turkey, South Korea, Taiwan, and Pakistan.
In 2022, Nigeria imported textile products worth N365 billion, accounting for approximately 70 percent of the government's N500 billion intervention over a 30-year period, as reported by various government institutions, including the Central Bank of Nigeria (CBN).
Insufficient power supply, inconsistent government policies, the smuggling of imported textiles, and insecurity have been identified as key factors contributing to the inability of Nigerian textile companies to compete with imports from China and India.
Despite these challenges, industry stakeholders are once again urging President Tinubu to prioritize the revival of the textile industry as a crucial step in addressing unemployment and insecurity in the country.
The President of the National Union of Textile Garment and Tailoring Workers of Nigeria (NUTGTWN), Comrade John Adaji, emphasized their expectations from President Tinubu's administration regarding the textile industry. He acknowledged the interest shown by previous administrations in reviving the labor-intensive textile industry and the manufacturing sector as a whole since Nigeria's return to democracy in 1999.
Architect Gabriel Aduku, former Minister of State and Chairman of the Arewa Consultative Forum (ACF), also highlighted the significance of revitalizing the textile industry in terms of job creation and reducing insecurity. He emphasized the need for political will in addressing the challenges faced by Nigeria and highlighted the importance of reviving the Ajaokuta steel industry for maximum benefits.
Efforts to revive the textile industry date back to the Olusegun Obasanjo administration, which launched a N70 billion Textile Development Fund. Subsequent governments, including the Musa Yar'Adua/Goodluck Jonathan government and the Muhammadu Buhari government, introduced various textile industry intervention funds. Despite these interventions, there has been little tangible improvement in the textile sector's fortunes.
Comrade John Adaji of NUTGTWN acknowledged the policy measures implemented by past administrations but emphasized the significant gap between policy pronouncements and their implementation. He noted that President Buhari made the revival of the textile industry a campaign promise and expressed optimism that his administration would consolidate past gains and attract new investments.
Textile manufacturers and union representatives remain hopeful but highlighted that the government's initiatives to revitalize the industry, such as the Cotton, Textile, and Garment (CTG) policy, have not been effectively implemented to achieve the desired results. As a result, the textile sector is currently in a worse state compared to 2015, with numerous factory closures and significant job losses.
The challenges faced by the industry include the rampant importation of fake and substandard textile products, unstable and costly electricity supply, high costs of essential raw materials, exchange rate fluctuations, low patronage, and the absence of a clear industrial policy.
Industry stakeholders are now looking to the new administration led by President Bola Ahmed Tinubu, hoping that it will prioritize the urgent revival of the labor-intensive textile industry. They seek to collaborate with the government to generate ideas for sustainable industrial revival, wealth creation, and the generation of decent employment opportunities.
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