The Kaduna State Internal Revenue Service (KADIRS) has sealed the United Nigerian Textiles Limited (UNTL), the last operational textile factory in Northern Nigeria, over an outstanding tax debt of N1.2 billion.
The closure marks a major setback for the once-thriving textile industry in Kaduna, a city that was once referred to as the “Manchester of Nigeria” due to its booming manufacturing sector.
A Long History of Decline
UNTL, which was established in 1964, was at one time the largest textile factory in West Africa. At its peak, the company employed over 10,000 workers and operated round-the-clock shifts to meet production demands. However, the company suspended production in 2007 due to economic challenges, dwindling government support, and high operational costs.
Over the years, UNTL struggled to remain afloat. The impact of the COVID-19 pandemic in 2020 forced the company to halt operations entirely, following a state-wide lockdown. Though it later resumed activities after pressure from the National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN), it was unable to return to its former glory. In 2021, UNTL laid off 300 workers—amounting to 30% of its workforce—as financial difficulties mounted.
Government Action and Justification
Speaking after the enforcement action, KADIRS Board Secretary and Legal Adviser, Barr. Aysha Ahmad, explained that the company accumulated tax liabilities related to ground rent, fire service, and environmental protection fees, among other levies owed to the state.
“The last time the company communicated with KADIRS was in 2022, when a tax audit was conducted. Since then, no response or payment has been made,” Ahmad stated.
She emphasized the importance of voluntary tax compliance, describing it as a fundamental civic duty that sustains public services.
Industry Reactions and Fallout
The shutdown of UNTL has sparked concerns within the textile industry and among labor unions. The National Union of Textile, Garment and Tailoring Workers of Nigeria (NUTGTWN) has long warned of the impending collapse of the textile sector, citing government policies, high taxation, and lack of investment in local manufacturing as major threats.
An anonymous textile worker who was recently laid off expressed frustration over the government’s action. “This company is one of the few places left where people can find industrial jobs in Kaduna. Now, with this closure, where do they expect us to go?” he lamented.
Economic analysts have also pointed out that the decline of the textile sector has contributed to Kaduna’s high unemployment rate and loss of economic vibrancy. “In the past, Kaduna’s textile mills provided a solid backbone for employment and industrial growth in Northern Nigeria. Now, what remains is a shadow of its former self,” noted Dr. Yusuf Adewale, an economic expert.
A Broader Crisis in Nigeria’s Textile Industry
The closure of UNTL is part of a larger crisis facing Nigeria’s textile industry, which has struggled due to inconsistent policies, lack of access to affordable power, and the influx of cheap imported fabrics. Once a major employer, Nigeria’s textile sector has shrunk significantly over the past two decades, with many factories shutting down due to rising production costs and competition from foreign imports.
Although the Nigerian government has attempted to revive the sector through initiatives such as the Central Bank of Nigeria’s (CBN) intervention funds for textile manufacturers, the results have been limited. Many factory owners have argued that without improved infrastructure, stable electricity, and a crackdown on smuggled textiles, domestic production will continue to decline.
What’s Next for UNTL?
With KADIRS taking action against UNTL, the future of the company remains uncertain. Unless the company resolves its tax dispute with the Kaduna government, it may face prolonged closure or even liquidation.
Observers say this latest development is yet another sign of the deepening challenges within Nigeria’s industrial sector. Whether the Kaduna government and UNTL management can find a way to resolve the issue remains to be seen.
For now, the workers of UNTL—and Kaduna’s textile industry at large—are left in limbo, hoping that one of Nigeria’s oldest manufacturing giants can somehow rise again.
