The textile industry in Nigeria is in a bad state. Smuggling is a major problem. Textile workers face job losses and the industry is unable to operate at optimal capacity. There is a gap between official policy pronouncements and implementation.
The Cotton, Textile and Garment (CTG) fund set up in 2008 hasn’t had much effect. While some of the policies such as the ban on textile imports between 2003 and 2007, the introduction of the Export Expansion Grant (EEG), and the textile and cotton intervention funds did bring succour to the industry there has been a reversal of policies by successive governments rather than strengthening and sustaining the policy measures.Money has been wasted on bailing out power companies.
Unless clear pathways for industrialization have been established the country will continue to witness a high level of unemployment and restiveness. Employment generation and employee retention, as well as poverty eradication, largely depend on the amount of value addition through industrialisation and the degree of diversification of the economy. The textile industry remains the key driver of sustainable jobs and development for most national economies of developing nations like Nigeria. Tax waivers for textile-based industries can encourage investment and encourage fair competition.