Billionaire businessman Aliko Dangote has identified his investment in Nigeria’s textile industry as the biggest business mistake of his career, recalling how the venture eventually collapsed amid intense competition from imported products.

Dangote made the disclosure during an interview with Arise Television, where he reflected on some of the challenges he encountered while building his business empire.

According to the businessman, the textile operation became increasingly difficult to sustain as local manufacturers faced what he described as dumping of products from China and India.

He also pointed to inadequate policy protection for domestic manufacturers as another factor that contributed to the collapse of the business.

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Dangote said the combination of foreign competition and weak support for local textile producers eventually left the company with little option but to shut down its operations.

“My biggest business mistake was textiles,” Dangote said.

“We were swamped by Chinese dumping and Indian dumping. So eventually we had to close down.”

The billionaire noted that the consequences of the closure went beyond the loss of an investment, as thousands of Nigerian workers lost their jobs following the shutdown of the textile businesses.

He disclosed that nearly 8,000 workers were laid off across the textile operations, with Nigerian Textile Mills in Ikeja, Lagos, accounting for 6,920 of the affected employees.

Dangote Recalls Textile Investment Losses

Dangote’s account highlights the difficulties faced by domestic manufacturers when locally produced goods compete with cheaper imported alternatives.

The businessman said the experience influenced the way he approached subsequent investments, particularly regarding the long-term sustainability of businesses.

He explained that companies should be structured in a way that allows them to remain viable even when government protection or support is eventually withdrawn.

The textile industry was once an important component of Nigeria’s manufacturing sector, providing employment and supporting related activities across the production chain.

However, Dangote’s comments underline the challenges that can arise when domestic manufacturers struggle to compete with imported products.

For his business group, the closure of the textile operation represented both a financial setback and a major employment loss.

The nearly 8,000 job losses referenced by Dangote demonstrate the wider consequences that can follow the collapse of large industrial operations.

The 6,920 workers laid off from Nigerian Textile Mills in Ikeja alone represented a substantial workforce directly affected by the shutdown.

Dangote’s remarks also draw attention to the broader debate surrounding industrial policy in Nigeria, particularly measures intended to support local production and protect domestic manufacturers from unfair or excessive competition.

While governments may introduce policies designed to encourage local manufacturing, businesses still have to operate in an environment where imported goods can influence prices and consumer choices.

For Dangote, the textile experience became a lesson in assessing the durability of an investment and its ability to survive changing economic and policy conditions.

He suggested that his later business decisions were informed partly by the need to build enterprises capable of standing on their own rather than depending indefinitely on government protection.

The businessman’s comments come at a time when the sustainability of Nigerian manufacturing remains an important economic issue, with businesses facing questions around production costs, market competition and access to supportive policies.

His recollection of the textile venture therefore provides an insight into one of the more difficult chapters in his business history.

Despite the eventual closure, Dangote said the experience helped shape his thinking about investment and the importance of building businesses that can remain competitive over the long term.

The textile episode, particularly the scale of employment affected, also illustrates how the fortunes of major industrial businesses can have significant consequences for workers and the wider economy.