The management of Kaduna's only surviving textile company, United Nigeria Textiles, has axed 1,200 workers in the face of cost pressures.

According to a statement signed by company director Senator Walid Jibrin, the decision was made following increased production costs and market instability.

Jibrin said smuggling activity and pirating had made the situation even worse.

"Markets have been flooded with inferior and cheaper fabrics," he said.

"Because of these our stock keeps building up gradually due to lack of sales, which is resulting in cash flow problems."

The company has decided to suspend operations at the Unitex business and two weaving units of UNT until the situation improves.