Nigeria’s textile, apparel, and footwear manufacturers operated at just 53.05 per cent of their installed capacity in 2025, signalling a deepening production crisis in a sector critical to the country’s industrialisation goals.
The figure indicates that nearly half of the available production infrastructure in the sector remains idle. This underutilisation reflects a persistent struggle to maintain operational efficiency amidst macroeconomic instability and rising input costs.
According to reporting by BusinessDay, the decline in capacity utilisation is a symptom of structural bottlenecks that have plagued the Nigerian manufacturing landscape for several years.
The textile sector, which once served as a cornerstone of Northern Nigeria’s economy, particularly in Kano and Kaduna, has faced a protracted decline. Current data suggests that the remaining firms are struggling to survive rather than expand.
Industry players point to a combination of soaring energy costs and a volatile foreign exchange market as the primary drivers of the slump. Many mills rely on imported machinery and raw materials, making them highly susceptible to fluctuations in the value of the Naira.
Currency Devaluation and Import Competition Strain Mills
The devaluation of the Naira has significantly increased the cost of importing essential dyes, chemicals, and high-grade cotton fibers. This has forced many manufacturers to reduce their production volumes to manage working capital.
The Manufacturers Association of Nigeria (MAN) has previously highlighted that the high cost of diesel and electricity for self-generation adds a prohibitive premium to the cost of every metre of fabric produced.
This cost structure makes locally produced textiles less competitive compared to smuggled goods and cheap imports from Asia. Smuggling, particularly through porous borders, continues to undercut local prices, leaving domestic mills unable to clear their inventories.
Historically, Nigeria’s textile industry employed hundreds of thousands of workers. However, the shift toward a consumption-based economy and the lack of consistent power supply led to the closure of dozens of large-scale mills over the last two decades.
Data from the National Bureau of Statistics (NBS) on manufacturing output generally reflects this trend, where the textile and apparel sub-sector often lags behind other manufacturing activities like food and beverages.
The current capacity gap of nearly 47 per cent represents lost revenue for companies and a significant loss of potential employment for the Nigerian labour market.
Industry analysts suggest that without targeted interventions, such as preferential credit lines for raw material procurement or stricter border controls to curb smuggling, the sector may face further contractions.
The current situation leaves the Nigerian market heavily dependent on foreign imports for apparel and home textiles, exacerbating the trade deficit and draining foreign exchange reserves.
Government efforts to revitalise the sector through various incentive schemes have yet to yield a measurable increase in capacity utilisation. The focus now remains on whether new trade policies or energy reforms can provide the stability needed for manufacturers to restart idle looms.
The next critical indicator for the sector will be the upcoming quarterly manufacturing report, which will determine if the current low capacity is a temporary dip or a permanent structural failure.
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