Over 104 textile companies in Nigeria have closed shop due to the combined factors of an unfriendly manufacturing environment and the high incidence of smuggling and imports, said Adesanmi Adeduro, Managing Director of Banquaires Facilities Intl Ltd.  Out of the 140 textile companies, the 104 have stopped producing, with over 200,000 workers losing their jobs, and most of the retrenched workers are now commercial motorcycle riders.

Commenting on the state of the textile industry, Mr. Adeduro said that smuggling has been a major challenge to the local industry; over ₦4 trillion worth of textiles materials are smuggled into the country yearly.

Another challenge facing the industry is the pace of the government on implementing the bailout funds for reviving the textile industry. He therefore urged the government to establish a regulatory framework harmonize taxes to enable the industry grow. The government should patronize local manufacturers ensure that the relevant security agencies perform their duties, he concluded. In the 1980s, Nigeria had over 140 textile companies, but can hardly boost of 40 now. The few that are left are producing at less than 10% of their installed capacity utilization. The influx of textiles and fabrics into the country is a result of government's failure to implement its political will on banned textiles and monitor our porous borders. This will continue to impact negatively on the textile industry.

The Federal government promised a ₦70 billion fund to bail the out industry, but the fund has been enmeshed in controversies, and was not even included in the 2009 budget.