By Alaro Of Nigeria
Nigeria’s textile industry, once a thriving sector contributing significantly to the economy, now faces total collapse. Despite numerous revival efforts, adverse policies, and rampant importation, the industry struggles to survive. Unfortunately, this is not an isolated case but a reflection of the broader economic challenges facing multiple industries across Nigeria, all overshadowed by an over-reliance on oil.
The Decline of the Textile Industry
From the 1970s to the 1990s, Nigeria’s textile industry was a robust sector, supporting over one million direct laborers and contributing significantly to the nation’s GDP. However, since 2005, the industry has faced a steep decline. Today, only about five textile mills remain operational, and the labor force has dwindled to less than 2,000.
Failed Revival Efforts
Despite the federal government’s attempts to revive local production through various intervention programs, the textile industry continues to struggle. Measures such as financial support from the Central Bank of Nigeria (CBN) and foreign exchange restrictions on textile imports have not yielded the desired results.
Rising Imports
Data from the National Bureau of Statistics (NBS) from 2019 to 2023 reveals a steady increase in textile imports, with imports totaling N1.4 trillion out of N1.5 trillion in total textile trade. This heavy reliance on imports has further crippled the local industry, with foreign fabrics flooding the market.
Broader Economic Challenges
The woes of the textile industry mirror the struggles of other sectors in Nigeria. Industries across the board are affected by similar challenges, including inconsistent government policies, high operational costs, and inadequate infrastructure. The focus remains heavily on oil, yet even this sector faces issues with inefficiency and corruption.
The Role of Adverse Policies
Tight monetary policies by the CBN have exacerbated the situation, reducing the competitive capacity of Nigerian products in the global market. The Manufacturers Association of Nigeria (MAN) has highlighted how these policies increase the cost of doing business, making it harder for local industries to compete with cheaper imports.
The Need for Structural Reforms
To address these challenges, industry stakeholders have called for the enforcement of Executive Order 003, which mandates government agencies to patronize locally made products. They argue that structural constraints need to be addressed to reduce production costs and encourage local manufacturing.
Government’s Revamp Plans
The federal government has initiated plans to revamp the cotton, textile, and apparel industry with investments totaling $3.5 billion. This initiative aims to create 20,000 jobs and rejuvenate the sector. However, similar efforts are needed across other industries to ensure sustainable economic growth.
Conclusion
Nigeria’s over-reliance on oil has overshadowed the potential of other industries. The textile industry’s collapse is a stark reminder that a diversified economy is crucial for long-term prosperity. Addressing structural issues, enforcing supportive policies, and encouraging local production are steps in the right direction. The broader economic challenges call for a collective effort to shift the focus from oil to a more diversified and sustainable economic model.
Call to Action
As Nigeria continues to navigate these economic challenges, it is imperative for both the government and the private sector to work together. The Obidient movement and other advocates for change must push for reforms that will create a more balanced and prosperous economy for all Nigerians. The time to act is now, to ensure that industries do not just survive but thrive, leading Nigeria to the promised land of economic stability and growth.
