How Nigeria’s love for Ankara costs the Economy billions due to importation

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Following the new report revealed by Consonance Investment, Nigeria’s signature fabric, Ankara, is largely imported, costing the country’s economy billions. Nearly 90% of “Ankara” print fabrics that define Nigerian fashion are imported, primarily from China and India.

“Nigeria loses an estimated $3 billion in local value annually due to reliance on imported Ankara fabrics,” the report titled “Who is Dressing 220+ Million Nigerians?” states. Despite being a cultural staple, local fashion brands and textile manufacturers account for less than 15% of the clothing supply, largely due to inadequate investment in domestic production and retail infrastructure.

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“Over 85% of fashion supply bypasses formal local industry channels,” the report notes. Nigerian consumers spend between $2.5 billion and $6 billion on clothes every year, but the fashion industry only makes up $129 million (₦205 billion) of the country’s GDP, or 0.47% of the total.

The report highlights that most of the value is lost to imports and informal retail activity, with Nigeria importing up to $6 billion in apparel and textiles each year, excluding an estimated $1.2 billion in smuggled goods. The industry remains fragmented, underfunded, and full of untapped potential, with retail dominated by informal markets.

“Approximately 25,000 individuals are directly employed in Aba’s garment and leather clusters, with many more engaged in supporting industries,” the report states. At least 10,000 Nigerian fashion vendors operate on Instagram, powering a massive informal e-commerce scene.

The report also notes that less than 15% of Nigeria’s fashion market is served by structured capital from banks and government agencies, with the majority of fashion brands in the country being self-funded. “Most local brands have to build their own infrastructure across the value chain, i.e., from design to distribution,” it adds.

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