Sanusi says poor infrastructure, smuggling killing Nigeria’s textile industry

By Abubakar Yunusa

Muhammadu Sanusi, the emir of Kano, says poor infrastructure, widespread smuggling, and ineffective copyright enforcement are major challenges hindering the growth of Nigeria’s textile industry.

Sanusi spoke with the press in Kaduna after a tour of United Textile Company Limited (UNTL) by John Enoh, minister of state for trade and investment.

The emir, who also serves as the chairman of UNTL, said textile companies like United Textile, SuperTex, Unitex, Zamfara Textiles, and Funtua Textile have been forced to cease production due to the challenges.

Sanusi said the board is open to conversations with the government, and the minister’s visit is a very good first step.

He noted that the textile industry is a vital engine for economic growth and job creation, and they look forward to seeing a change in policy that will make them believe there will be a sustainable business model.

“Basically, you have seen the factory and all the investments that are here. Imagine if you could get this alive, what it would do to the economy,” he said.

“This is the kind of thing we have been advocating as economists, that the country needs to do.”

He emphasised that investing in labour-intensive industries such as manufacturing and agriculture is crucial for addressing unemployment and poverty, as it fosters sustainable economic growth.

“You want to grow the GDP. You can have many ways of GDP growth. But if you have a country of 200 million people, you need growth in labour-intensive industries,” he noted.

“Every country that has created jobs and development had to go through this phase of protecting and promoting its secondary sectors.”

The emir reiterated the UNTL’s foreign investors’ resilience and commitment, particularly the Cha family, who he said continue to inject funds into Nigeria “despite facing immense challenges”.

“They have textiles in Ghana, Hong Kong, Europe and the United States. It is not as if they want to leave Nigeria; they have been forced out of business,” he said.

“They kept putting in a lot of money, but infrastructural problems, smuggling problems, and copyright problems are obstacles.”

He reaffirmed the company’s determination to fulfil its financial obligations, saying the Cha family, owners of United Textiles, will not walk away from its debt and will not default.

Sanusi said the renewed dialogue with the government could pave the way for the revival of Nigeria’s once-thriving textile industry, generate employment, and contribute meaningfully to the national economy.

“We would like to produce. We would like to create jobs. We would like to see that we are adding value to the Nigerian economy if the government can help us,” the emir said.

The minister also visited Chellco Industry Ltd, another textile company.