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Textile Sector Exports and Economic Development in Nigeria

Opara, Godstime Ikechukwu Ogu, Callistus Madu Kingsley Armsterdan

Subject area: Management and Commerce  ·  Area of research: Economics

DOI: 10.64388/IREV9I12-1719061

Abstract

This study examined the impact of textile sector exports on economic development in Nigeria. Despite its historical significance as Africa's largest textile producer and a major source of non-oil export earnings during its peak decades, Nigeria's textile sector has experienced persistent decline, with operational mills collapsing and export earnings dwindling to negligible levels. The study was motivated by mixed empirical evidence regarding the relationship between textile exports and economic development, and renewed policy interest surrounding the African Continental Free Trade Area. The main objective was to examine the impact of textile export earnings on GDP per capita as a measure of economic development. The study adopted an ex post facto research design utilizing annual time-series data from 1990 to 2024, sourced from the World Development Indicators, Central Bank of Nigeria Statistical Bulletin, and National Bureau of Statistics. The Autoregressive Distributed Lag bounds testing approach was employed to examine long-run relationships. The findings revealed that textile export earnings have a significant negative relationship with GDP per capita growth, contrary to the export-led growth hypothesis, indicating deep structural challenges in external competitiveness and value addition. Conversely, textile sector output demonstrated a strong positive relationship with GDP per capita growth, affirming the sector's potential for domestic demand-driven development. The study concludes that while domestic textile production remains a crucial development lever, the current structure of textile exports fails to deliver sustainable improvements in living standards, necessitating urgent policy intervention for value addition and regional market integration.

Keywords

Textile exports, economic development, GDP per capita, export-led growth

References

[1] Adeyemi, O. S. (2022). Export performance and competitiveness of Nigeria's textile industry. Journal of African Trade, 9(1), 45–60.

[2] African Export-Import Bank. (2024). Nigeria textile industry revival facility: Technical report. African Export-Import Bank.

[3] Aliu, F. (2021). Textile sector output and economic growth in Nigeria: An empirical analysis. Nigerian Journal of Economic Studies, 14(2), 88–102.

[4] Bello, A. (2025). Regional trade integration and textile export performance in West Africa: A gravity model approach. African Journal of Trade and Industrial Policy, 11(3), 112–130.

[5] Central Bank of Nigeria. (2023). Annual report and statement of accounts. Central Bank of Nigeria.

[6] Central Bank of Nigeria. (2024). Statistical bulletin: Economic and financial review. Central Bank of Nigeria.

[7] Federal Ministry of Industry, Trade and Investment. (2026). Nigeria-United Arab Emirates comprehensive economic partnership agreement: Implementation report. Federal Ministry of Industry, Trade and Investment.

[8] Lewis, W. A. (1954). Economic development with unlimited supplies of labour. The Manchester School, 22(2), 139–191.

[9] National Bureau of Statistics. (2023). Annual abstract of statistics: Employment and sectoral performance. National Bureau of Statistics.

[10] National Bureau of Statistics. (2024). Labour force statistics: Employment in the manufacturing sector. National Bureau of Statistics.

[11] Nigeria Export Promotion Council. (2025). Annual report on non-oil export performance. Nigeria Export Promotion Council.

[12] Nigeria Export Promotion Council. (2026). Market intelligence platform for African trade: Technical documentation. Nigeria Export Promotion Council.

[13] Nigerian Textile Manufacturers Association. (2023). Annual report on the Nigerian textile industry. Nigerian Textile Manufacturers Association.

[14] Okafor, L. N., & Ibrahim, M. K. (2022). Policy inconsistency and the decline of Nigeria's textile sector. African Journal of Business and Economic Research, 17(3), 211–230.

[15] Okafor, L. N., & Ibrahim, M. K. (2025). The AfCFTA and Nigeria's textile exports: An instrumental variables analysis. Journal of Economic Integration, 40(2), 89–110.

[16] Okonkwo, R. V. (2023). Employment generation and industrial output: Evidence from Nigeria's textile sector. Journal of Development Studies, 39(4), 567–582.

[17] Romer, P. M. (1990). Endogenous technological change. Journal of Political Economy, 98(5), S71–S102.

[18] World Bank. (2024). World Development Indicators. World Bank.

[19] Yusuf, A. (2024). Reviving Nigeria's textile industry: Linkages, multipliers, and economic diversification. International Journal of Industrial Policy, 12(1), 112–129.

How to cite this paper

Opara, Godstime Ikechukwu, Ogu, Callistus, Madu Kingsley Armsterdan "Textile Sector Exports and Economic Development in Nigeria" Iconic Research And Engineering Journals Volume 9 Issue 12 2026 Page 2986-2995 https://doi.org/10.64388/IREV9I12-1719061
Opara, Godstime Ikechukwu, Ogu, Callistus, Madu Kingsley Armsterdan "Textile Sector Exports and Economic Development in Nigeria" Iconic Research And Engineering Journals, vol. 9, no. 12, Jun. 2026, doi: https://doi.org/10.64388/IREV9I12-1719061
Opara, Godstime Ikechukwu, Ogu, Callistus, Madu Kingsley Armsterdan (2026). Textile Sector Exports and Economic Development in Nigeria. Iconic Research And Engineering Journals, 9(12). doi: https://doi.org/10.64388/IREV9I12-1719061
Opara, Godstime Ikechukwu, Ogu, Callistus, Madu Kingsley Armsterdan "Textile Sector Exports and Economic Development in Nigeria" Iconic Research And Engineering Journals, vol. 9, no. 12, Jun. 2026. Crossref, https://doi.org/10.64388/IREV9I12-1719061
@article{1719061,
      author = {Opara, Godstime Ikechukwu, Ogu, Callistus, Madu Kingsley Armsterdan},
      title = {Textile Sector Exports and Economic Development in Nigeria},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {12},
      pages = {2986-2995},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1719061.pdf},
      abstract = {This study examined the impact of textile sector exports on economic development in Nigeria. Despite its historical significance as Africa's largest textile producer and a major source of non-oil export earnings during its peak decades, Nigeria's textile sector has experienced persistent decline, with operational mills collapsing and export earnings dwindling to negligible levels. The study was motivated by mixed empirical evidence regarding the relationship between textile exports and economic development, and renewed policy interest surrounding the African Continental Free Trade Area. The main objective was to examine the impact of textile export earnings on GDP per capita as a measure of economic development. The study adopted an ex post facto research design utilizing annual time-series data from 1990 to 2024, sourced from the World Development Indicators, Central Bank of Nigeria Statistical Bulletin, and National Bureau of Statistics. The Autoregressive Distributed Lag bounds testing approach was employed to examine long-run relationships. The findings revealed that textile export earnings have a significant negative relationship with GDP per capita growth, contrary to the export-led growth hypothesis, indicating deep structural challenges in external competitiveness and value addition. Conversely, textile sector output demonstrated a strong positive relationship with GDP per capita growth, affirming the sector's potential for domestic demand-driven development. The study concludes that while domestic textile production remains a crucial development lever, the current structure of textile exports fails to deliver sustainable improvements in living standards, necessitating urgent policy intervention for value addition and regional market integration.},
      keywords = {Textile exports, economic development, GDP per capita, export-led growth},
      month = {June},
      doi = {https://doi.org/10.64388/IREV9I12-1719061}
  }