Nigeria’s Textile Revival Could Retain N530bn Annually Through Import Substitution

By Johnson Emmanuel

The Cotton, Textile and Garment Development Forum (CTGDF), coordinated by Chief Anibe Achimugu, has urged President Bola Tinubu to operationalise the Cotton, Textile and Garment Development Board (CTGDB) to revive distressed factories and reduce textile imports. Speaking in Abuja on Tuesday during World Cotton Day 2026, the forum called for presidential approval, a 12-month industrial asset preservation protocol and transmission of an Executive Bill to the National Assembly. It cited National Bureau of Statistics (NBS) trade figures and estimated that replacing 25 to 50 percent of 2025 textile imports with local production could create an annual gross opportunity of N265 billion to N530 billion.

DECISION HIGHLIGHT

The proposal links factory preservation, creditor recovery and domestic production, positioning textile revival as an import-substitution and employment strategy.

DECISION MEMO

Nigeria’s textile revival challenge is not simply about reopening factories; it is about preserving productive assets while making their operations commercially sustainable. The CTGDF argues that viable factories can repay creditors, purchase Nigerian cotton and restore jobs, whereas selling machinery piecemeal could destroy their going-concern value.

The forum said that the National Economic Council (NEC) endorsed the CTGDB at its 149th meeting on 24 April 2025. It wants the Board to operate under presidential oversight with private-sector leadership, supported by legislation and a transparent funding mechanism involving the Textile Import Levy.

Its proposed 12-month preservation protocol would begin with a 90-day independent audit of qualifying distressed assets. Facilities would then be assessed for rehabilitation, restructuring, transfer to credible operators or responsible closure. Any restructuring would require new capital, improved governance, reliable power, domestic raw material supply, credible orders and dated repayment milestones.

The economic case rests on reducing import dependence while rebuilding local production. However, the projected N265 billion to N530 billion represents a gross opportunity, not guaranteed savings or revenue. Actual foreign exchange gains would depend on imported machinery and other inputs, while factory recovery would require investment, competitive production and reliable demand.

The employment potential is substantial if delivery matches the ambition. The forum cites the possibility of 1.4 million to more than two million direct and indirect jobs across the value chain. Those gains depend on factories becoming operational and sustaining demand for locally grown cotton, processing, logistics and garment manufacturing.

DATA BOX

• Textile imports, 2024: N726.18 billion.
• Textile imports, 2025: N1.061 trillion.
• First half of 2026 imports: N578.51 billion.
• Estimated annual gross substitution opportunity: N265 billion to N530 billion, based on replacing 25 to 50 percent of 2025 imports.
• Potential employment: 1.4 million to more than two million direct and indirect jobs, according to the forum’s cited benchmarks.
• Proposed preservation period: 12 months, beginning with a 90-day national audit.
• Export channels identified: African Continental Free Trade Area (AfCFTA), African Growth and Opportunity Act (AGOA) and other markets.

WHO WINS / WHO LOSES

Potential winners: Cotton farmers, textile and garment manufacturers, workers, domestic suppliers and creditors if viable factories resume production and repay debts.

Potential losers: Import-dependent suppliers could face reduced market share. Creditors and workers could also lose if preservation delays necessary restructuring without restoring commercial viability.

POLICY SIGNALS

The proposal requires coordinated presidential action, legislation, creditor agreements and transparent reconciliation of the Textile Import Levy. Independent audits and clear eligibility criteria would be essential to prevent asset preservation from becoming indefinite support for unviable factories.

INVESTOR SIGNAL

The opportunity lies in rehabilitating viable facilities and rebuilding an integrated cotton-to-garment value chain. Investors will need evidence of reliable power, credible orders, sound governance, financing and repayment capacity before committing capital.

RISK RADAR

Key risks include weak implementation, unresolved creditor claims, unreliable electricity, insufficient working capital, import dependence for inputs and overstated job or foreign exchange projections. Without commercially credible operating plans, preserving industrial assets may postpone liquidation without securing revival.

Johnson Emmanuel is a journalist, covering business, investment, monetary & fiscal policies, CBN, economic affairs and issues of significance to Nigeria’s corporate and public sectors.