PUBLIC-PRIVATE PARTNERSHIP AND INNOVATION IN NIGERIA'S TEXTILE AND FASHION INDUSTRY UNDER ECONOMIC UNCERTAINTY: LESSONS FROM CHINA AND BANGLADESH

School of Public Administration and Entrepreneurship, Ural Federal University, Russia
Russian Federation

School of Public Administration and Entrepreneurship, Ural Federal University, Russia
Russian Federation


Abstract

This study investigates the role of public- private partnership (PPPs) in enhancing innovation in the Nigerian textile and fashion market in a situation of economic uncertainty, with a comparative analysis of China and Bangladesh. A quantitative survey design with a secondary comparative component was employed. Primary survey data were collected from 550 major stakeholders in five states: Lagos, Abia, Rivers, Abuja, and Kano. Regression analysis was used to test three hypotheses examining the relationship between PPP mechanisms, innovation capacity and SME performance. Regression results indicate that PPP- driven initiatives were significantly more effective than government-only approaches in explaining 65.9% variation in digital capability (R2 = 0.659, β = 0.765, p< 0.001), 72.9% variation in SME performance (R2 = 0.729, β = 0.812, p = 0.001), and 69.9% variation in competitive conditions (R2 = 0.699). The results further indicate that economic uncertainty and limited industry growth were compounded by structural challenges, including infrastructural deficit (mean = 3.05/10) and policy discontinuity (mean = 4.01/10), alongside a 47.43% growth in the value of textile imports at N814.27 billion between January-September 2025. Female respondents accounted for 56.7% of the sample highlighting the critical role of gender in innovation and human capital development. Comparative analysis indicates that PPP-based industrial clustering in China and export oriented institutional framework in Bangladesh offer scalable frameworks for improving innovation and resilience. The study concludes that PPPs represent a strategic governance mechanism capable of addressing economic uncertainty, enhancing innovation systems, and supporting sustainable industrial development in Nigeria’s textile and fashion industry.

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References


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