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The purpose of this paper is to examine the determinants of consumers preferences on textile materials and the impact of consumer preference on performance of textile industry. This is because as consumers have access to a variety of textile products, they strongly developed and shifted preference to foreign sources, which could lead to the eventual demise of many of the textile factories.

The logit model is adopted to describe the behaviour of consumers when faced with a variety of mutually exclusive choices. The model also describes the consumers’ choice of differentiated goods with common consumption objectives but with different characteristics.

Findings revealed that consumers in Nigeria prefer foreign textile to locally made textile. In addition, differences in quality and availability are factors that drive consumer’s preference towards foreign textile. Also, the inefficient performance of the Nigerian textile industry is influenced by limited demand from the domestic market, poor infrastructure and smuggling. Hence, there is a need for innovative entrepreneurship, concentration on quality improvement and alleviating supply constraints.

To the best of the authors’ knowledge, this is the first study that examines consumer preferences in the Nigerian textile industry.