Nigeria's textile industry declines due to Chinese imports

Nigeria's textile industry, once a vital part of its economy, has drastically declined due to cheap imports from China. In the 1990s, the sector employed hundreds of thousands and produced high-quality fabrics. Today, only a few factories still operate, struggling under the pressures of foreign competition. The low cost of Chinese textiles stems from their integrated supply chain, where necessary materials and machinery are made in China. Nigerian textile manufacturers, on the other hand, must import many of these supplies. Additionally, the depreciation of the naira has increased import costs, further harming local producers. Imported fabrics are often made of polyester, a cheaper synthetic material, which is considered lower quality than cotton. Some consumers mistakenly believe these products are locally made because they mimic Nigerian designs. Counterfeit goods, marked as "Made in Nigeria," also flood the market, damaging the reputation of local brands. Despite a tax designed to support local production, the money has not reached Nigerian manufacturers. Millions have lost jobs, and the number of operational textile mills has plummeted from over 150 to fewer than four. The drop in demand for locally grown cotton is visible, and the cotton farming season has been bleak. Nigeria is no longer a member of the International Cotton Advisory Committee due to unpaid membership dues. The industry struggles to cover these costs, and the government has not provided sufficient financial support. Electricity shortages also hinder production, as many factories depend on expensive diesel generators. Last summer, Nigeria took out a $3.5 billion loan to revive the industry, but there is skepticism about its implementation. Representatives of the textile sector feel left out of the process and are unsure of the government's commitment to support them.