Business
Imports choke textile industry, rise to N1.1trn in two years
***MAN cautions against blanket restrictions
***Textile manufacturers demand stronger protection
By Yinka Kolawole
Nigeria’s dependence on imported textile materials has almost tripled with importation surging by 181 per cent in two years to N1.08 trillion in 2025 from N377.47 billion in 2023, despite repeated efforts to revive the oncethriving local textile industry.
Latest data from the National Bureau of Statistics, NBS, also indicates further rise in import bills in 2026 as first quarter (Q1’26) figure already shows faster upswing to N267.7 billion, about 153.2 percent higher than the N70.48 billion recorded in the corresponding period of last year. Breakdown of data from the NBS shows that textile imports have recorded consistent growth over the period, underscoring the country’s growing reliance on foreign fabrics and the continued decline of domestic textile manufacturing.
The data showed that textile imports rose by 92.4 per cent to N726.18 billion in 2024 from N377.47 billion in 2023 before climbing by another 46 per cent to N1.08 trillion in 2025. Quarter-on-quarter, imports also increased by 17 per cent from N178.45 billion in Q1’24 and by 28.2 per cent from N228.83 billion in Q1’25. The trend has remained firmly upward in 2026 and forecast is looking at about N1.4 trillion by year end. The sharp increase in imports highlights the widening gap between domestic production and demand, as local manufacturers continue to contend with high production costs, inadequate power supply, foreign exchange pressures and other structural constraints.
In contrast, Nigeria’s textile exports have continued to weaken, weakening the country’s balance of trade in the textile sector. Exports fell by 11.8 per cent to N16.55 billion in 2025 from N18.76 billion in 2023 and declined sharply by 55 per cent from N36.98 billion recorded in 2024, reflecting the country’s diminishing competitiveness in textile manufacturing.
The widening gap between imports and exports has reignited debate over the future of the country’s textile industry, with policymakers and industry stakeholders divided over whether import restrictions alone can revive the sector. Senate pushes import ban Responding to the worsening fortunes of the industry, the Senate in June, 2026, adopted a resolution calling on the Federal Government to impose a total ban on textile imports.
The motion was aimed at reviving the once-vibrant textile mills along the Kaduna-Kano industrial corridor and restoring Nigeria’s domestic textile manufacturing capacity. The Senate urged the Federal Government to immediately prohibit the importation of foreign fabrics and textile materials, noting that imported products currently account for about 99 per cent of the domestic market. It also directed the Ministry of Agriculture to promote largescale cotton farming as the foundation for rebuilding the textile value chain.
In addition, the Senate called for increased intervention funding through the Bank of Industry, BoI, to revive distressed and closed textile factories and surveillance to curb widespread smuggling of textile products.
Manufacturers react
T h e Manufacturers Association of Nigeria, MAN, however, w a r n e d a g a i n s t rushing into a blanket import ban without first addressing the structural constraints facing local manufacturers. Director-General of MAN, Segun Ajayi-Kadir, said although Nigeria possesses the capacity to satisfy a significant share of domestic textile demand, legislation alone cannot revive the industry.
According to him, the government must first demonstrate genuine commitment to patronising locally manufactured textiles while ensuring strict implementation of existing local content policies. He said: “For instance, are we going to enforce the patronage of made-in-Nigeria textiles within the government? When the National Assembly passed this resolution, how many of them were wearing made-in-Nigeria garments?” Ajayi-Kadir argued that any restriction on textile imports should be accompanied by effective implementation of Executive Order 003 and the Federal Government’s “Nigeria First” policy.
According to him, the policy should compel government institutions, including the Presidency, National Assembly, military, Sustainable revival will require structural reforms that improve paramilitary organisations, uniformed agencies and public schools, to prioritise locally produced textile materials. He maintained that without guaranteed local patronage, improved competitiveness and consistent policy implementation, an import ban may fail to deliver the desired industrial revival.
Tex t i l e manufacturers seek stronger protection
On its part, the Nigeria Te x t i l e Manufacturers Association, NTMA, backed s t r onge r government protection for dome s t i c producers, insisting that years of unchecked i mp o r t s , smuggling and dumping have devastated the industry. Director-General of NTMA, Dr. Hamma Ali Kwajaffa, said the association has consistently advocated more decisive trade measures, including restrictions on textile imports, instead of marginal tariff increases that offer little protection to local manufacturers. He said the Senate’s recommendations align with the association’s longstanding position on protecting local industry. According to him, excessive importation and widespread smuggling have forced many textile factories to shut down, resulting in massive job losses across the country. K
wajaffa said: “NTMA supports comprehensive policy interventions aimed at reviving the industry and restoring its competitiveness.” He stressed that stricter border controls and stronger enforcement of trade regulations are essential to prevent the influx of cheap imported fabrics that continue to undermine local production. However, he acknowledged that import restrictions alone would not solve the industry’s problems. According to him, manufacturers are confronted by multiple structural constraints, including inadequate raw material supply, rising production costs, poor infrastructure, insecurity and limited access to affordable finance.
He said: “The collapse of local cotton production has left manufacturers struggling to source inputs.” He therefore called for stronger government incentives for cotton farmers, improved agricultural extension services and deliberate efforts to rebuild the country’s cotton value chain. Kwajaffa also identified limited access to affordable locally produced polyester as another major challenge, while lamenting the high cost of electricity and energy despite Nigeria’s status as a major crude oil producer. He further noted that insecurity across farming communities has reduced agricultural activities and limited the ability of extension workers to support cotton farmers, thereby worsening raw material shortages for textile manufacturers.
CPPE urges local revival instead of blanket ban
In sharp contrast, the Centre for the Promotion of Private Enterprise, CPPE, opposed the proposed import ban, warning that it could inflict significant damage on downstream industries that depend on imported textile materials. Chief Executive Officer of CPPE, Dr. Muda Yusuf, argued that the proposed restrictions could disrupt Nigeria’s estimated N10 trillion garment, tailoring and fashion industry, the N7 trillion furniture sector and threaten nearly 10 million jobs.
According to him, the country’s garment and tailoring industry consists largely of micro, small and medium enterprises, MSMEs, which currently rely on imported fabrics because local textile manufacturers cannot meet market demand in terms of quantity, quality and product variety. Yusuf said local factories presently lack the production capacity required to satisfy domestic demand. He warned that restricting imports under current conditions would increase production costs, worsen inflation and reduce consumer choices. He argued that the decline of Nigeria’s textile industry is primarily the result of poor competitiveness rather than excessive import penetration.
According to him, manufacturers continue to battle high energy costs, expensive credit, weak infrastructure and obsolete production technology. He said: “The proposed textile import ban risks undermining a vibrant garment and fashion ecosystem that supports millions of Nigerians while generating substantial domestic value addition. It could also adversely affect the furniture industry, encourage smuggling and reduce customs revenue.” Yusuf added: “The challenge confronting Nigeria’s textile industry is fundamentally one of competitiveness rather than import penetration.” He recommended a comprehensive reform agenda centred on rebuilding domestic cotton production, expanding access to affordable finance, providing reliable electricity, strengthening border controls against smuggling and leveraging government procurement policies to stimulate demand for locally produced textiles.
According to him, “Sustainable revival will require structural reforms that improve productivity, reduce production costs, revive cotton production, expand access to affordable finance and leverage government procurement to stimulate domestic demand.” The sharp divergence in views among policymakers and industry stakeholders reflects the difficult balancing act confronting the Federal Government – protecting domestic manufacturers while safeguarding millions of businesses that depend on imported textile materials. With textile imports continuing to climb and local production remaining weak, industry operators say lasting revival will depend less on import restrictions and more on restoring the competitiveness of Nigeria’s entire textile value chain.
Business
Nigeria-China trade hits $18bn in H1’26
Nigeria’s aquatic products have secured zero-tariff access to China’s market of about 1.4 billion consumers under a new protocol, as bilateral trade between both countries reaches $18 billion in the first half of 2026 (H1’26).
The development is expected to boost Nigerian exports and foreign exchange earnings, with Chinese Ambassador to Nigeria, Yu Dunhai, disclosing that Nigerian exports to China rose by 80 per cent in the first half of the year.
The Minister of Power, Joseph Tegbe, who received the Ambassador during a courtesy visit and reception following the signing of the Nigeria-China Aquatic Products Protocol, urged Nigerian exporters and businesses to move swiftly to take advantage of the new market-access opportunity.
In a statement the ministry said the protocol was concluded after nearly five years of negotiations and grants eligible Nigerian aquatic products zero-tariff access to the Chinese market.
Welcoming the Chinese Ambassador, Tegbe expressed appreciation for his continued support for the Nigeria-China Strategic Partnership and efforts to deepen trade and business relations between both countries.
The Minister noted that bilateral trade had reached $18 billion in the first half of 2026, compared with $28 billion recorded for the whole of 2025.
He said implementation of the aquatic products protocol would further strengthen economic ties and help fast-track other initiatives, including the Zero Tariff Agreement for African countries.
Tegbe therefore urged Nigerian exporters and businesses to move quickly to take advantage of the new market-access opportunity. Ambassador Yu reaffirmed the Chinese Embassy’s commitment to supporting implementation of the protocol and facilitating the entry of qualified Nigerian aquatic products into the Chinese market.
He described Tegbe’s appointment as a testament to his leadership, vision and pragmatism, while citing a 35 per cent increase in bilateral trade and an 80 per cent rise in Nigerian exports in the first half of 2026 as evidence of the significant potential for further cooperation.
The Ambassador also assured the Minister of the Chinese government’s support for Nigeria’s efforts to modernise and expand its power system.
Business
Tax Ombud set to launch taxpayer’s bill of rights, obligations
By Emma Ujah, Abuja Bureau Chief
The Office of the Tax Ombud (OTO) is set to launch a Taxpayer’s Bill of Rights and Obligations in the coming weeks as part of efforts to deepen taxpayer awareness, promote fairness and strengthen trust in Nigeria’s tax administration.
The Tax Ombud and Chief Executive Officer of OTO, Mr. John Nwabueze, disclosed this, yesterday, at a stakeholders’ engagement in Abuja.
Nwabueze said the Bill would give taxpayers a clear understanding of their rights and responsibilities while setting out the standards of fairness, transparency and accountability they should expect from tax and revenue authorities.
According to him, the document would be made available through the OTO’s digital platforms and other public channels.
He said: “We believe this will strengthen taxpayer awareness, encourage voluntary compliance, prevent disputes and build greater trust across the tax ecosystem.”
‘We’ll ensure fairness in tax administration’
Describing the stakeholders’ engagement as a key component of the OTO’s taxpayer rights campaign, Nwabueze vowed that the office would work to ensure a fair, transparent and responsive tax system.
He said a simplified and equitable tax system was critical to building a new national consciousness and restoring public trust in tax administration.
“This is not simply about discussing taxation and revenue. It is about strengthening the relationship between the taxpayer and the institutions responsible for administering public revenue,” he said.
Nwabueze said OTO had commenced a structured public awareness and stakeholder sensitisation programme to improve understanding of its mandate, services and the rights available to taxpayers.
He explained that effective protection of taxpayers’ rights depended on citizens knowing those rights and understanding where and how to seek redress.
The Tax Ombud disclosed that Nigeria’s OTO was the third such institution established in Africa and the ninth globally, placing the country within a broader international development in modern tax administration.
Business
India-Nigeria trade hits $9bn as firms deepen local production
By Yinka Kolawole
India-Nigeria bilateral trade rose by 26 per cent to about $9 billion in 2025–26, from $7.13 billion recorded in 2024–25, as economic ties between both countries deepen beyond oil and commodities into manufacturing, healthcare, energy, technology and job creation.
The Indian High Commissioner to Nigeria, Abishek Singh, disclosed that more than 200 Indian companies currently operate in Nigeria and have created nearly 100,000 jobs, making Indian businesses the second-largest employers of Nigerians after the Federal Government.
The expanding corporate presence also signals a shift from an export-driven relationship towards local production. Indian companies are increasingly establishing manufacturing and production facilities in Nigeria across pharmaceuticals, power, construction, consumer goods, healthcare and other services. With healthcare is emerging as a major area of cooperation, India’s Deputy High Commissioner to Nigeria, Vertika Rawat, said Indian pharmaceutical exports to Nigeria reached $315 million in 2024–25, with India accounting for about 40 per cent of Nigeria’s pharmaceutical imports and more than 90 per cent in some medicine categories.
She put Indian investment in pharmaceutical manufacturing in Nigeria at about $4 billion, reflecting growing efforts to produce medicines locally rather than rely mainly on imported finished products. The trend is expected to support skilled employment, strengthen supply chains and improve domestic production capacity.
The economic relationship between both countries, which dates back more than six decades, was elevated to a Strategic Partnership in 2007. Political engagement has also intensified, with President Bola Tinubu visiting India for the G20 Summit in 2023 and Prime Minister Narendra Modi visiting Nigeria in November 2024.
Beyond private investment, India has provided development assistance, concessional financing and technical training through its Indian Technical and Economic Cooperation programme. The expanding partnership offers Nigeria access to Indian capital, technology and expertise to boost productive capacity.
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