Nigeria Imports $4bn Cotton Annually – Arewa Cotton CEO

News in brief:

-Nigeria imports an estimated $4 billion worth of cotton and textile products annually through official and unofficial channels.

-Arewa Cotton CEO Anibe Achimugu calls for coordinated government intervention and private sector leadership to revive the CTG industry.

Nigeria imports cotton and textile products valued at up to $4 billion annually, according to the Managing Director of Arewa Cotton and Allied Products Limited, Anibe Achimugu.

Achimugu, who also serves as President of the National Cotton Association of Nigeria, disclosed this during an interview with Trust TV, where he outlined the structural challenges in Nigeria’s cotton, textile and garment sector and proposed measures for revival.

Smuggling, High Production Costs and Power Crisis

Achimugu attributed the sector’s decline primarily to widespread smuggling and the high cost of production, which have forced several textile mills to shut down operations.

He noted that when textile mills, the primary consumers of locally produced cotton, reduce output or close entirely, farmers are compelled to scale down production and seek alternative livelihoods.

Power supply constraints, he added, remain a major impediment within the textile and garment subsector, significantly affecting competitiveness and profitability.

Nigeria previously produced about 300,000 metric tonnes of cotton annually against an installed processing capacity of roughly 650,000 metric tonnes. At its peak, the country had more than 52 garment companies. Today, fewer than 20 remain operational, and most are running below capacity.

Several textile firms have shut down across key industrial hubs, including Kaduna, Lagos, Ibadan and Kano.

Import Bill Highlights Missed Opportunity

According to Achimugu, schools of thought estimate that Nigeria imports upwards of $4 billion worth of cotton and textile products yearly through both official and unofficial channels, including smuggled goods.

He described the cotton, textile and garment sector as a critical national asset capable of generating employment and wealth if properly supported.

“We are going to continue to import what we potentially can produce ourselves,” he said, stressing that the sector holds significant potential for domestic value addition and job creation.

Development Board Seen as Revival Strategy

Achimugu identified the recently approved Cotton, Textile and Garment Development Board, endorsed by the National Economic Council in April 2025, as a key mechanism for coordinating industry revival.

He argued that a major challenge lies in the disconnect between public institutions and industry operators, resulting in fragmented interventions. The proposed board, he said, would provide a unified platform to coordinate policy, investment and operational support across the value chain.

He also called for stronger enforcement of Executive Order 003 and broader implementation of the Nigeria First policy to prioritise locally produced goods, including military uniforms, school apparel and other government-related procurement.

With a domestic market of over 200 million people, he maintained that Nigeria should first meet local clothing demand before focusing on exports.

Private Sector to Drive Implementation

While acknowledging previous government efforts, Achimugu emphasised that the proposed development board would be private sector-driven to ensure commercial viability and operational efficiency.

“We wear the shoe, and we know where it pinches,” he said, adding that industry operators are better positioned to implement reforms effectively if adequately supported.

Reviving the industry, Achimugu noted, would require substantial capital investment. Modern machinery and equipment are essential to compete globally, and such assets are typically custom-ordered at high cost.

He also stressed the need to reorganise cotton farmers, improve security in farming communities and provide high-quality inputs in sufficient quantities to boost raw material supply.

While he did not advocate for subsidies or grants outright, he underscored the importance of measures that enhance competitiveness, particularly in reducing production costs such as power.

Call for Coordinated Government Action

In his closing remarks, Achimugu urged the government to adopt a structured and coordinated approach to sector reform, rather than continuing with fragmented interventions.

He emphasised the importance of engaging state governments and aligning all stakeholders under a single strategic framework to unlock the sector’s full potential.