Nigeria's Textile Sector Contracts for Ninth Consecutive Quarter

In Q2 2026, Nigeria's textile, apparel, and footwear subsector experienced a contraction for the ninth straight quarter, declining by 1.23% year-on-year in real terms, as reported by the National Bureau of Statistics. This decline, which began in Q2 2024, has seen the subsector's contribution to Nigeria's real GDP decrease from 1.87% in Q2 2025 to 1.77% in Q2 2026.

The subsector recorded a 0.49% year-on-year contraction in nominal terms during the same quarter. Despite the ongoing contraction, manufacturers' confidence improved in Q2 2026, driven by expectations regarding the commercial environment and recent policy measures, including the Nigeria Tax Act 2025 and the Nigeria Industrial Policy.

The Senate's call for a ban on textile imports in June 2026 has sparked debate, with the Centre for the Promotion of Private Enterprise warning that such a ban could disrupt the livelihoods of approximately 10 million Nigerians involved in the fashion and garment industry.