Managing Director of Arewa Cotton and Allied Products Ltd., Anibe Achimugu, has revealed that Nigeria imports an estimated $4 billion worth of cotton, textiles and garments annually, warning that the trend is crippling local production and threatening jobs across the value-chain.
Achimugu, who also serves as President of the National Cotton Association of Nigeria (NACOTAN), made the disclosure during an interview on television yesterday. He attributed the decline of Nigeria’s cotton, textile and garment (CTG) sector to smuggling, high production costs and inadequate power supply, which have forced many textile mills to shut down operations.
According to him, Nigeria previously produced about 300,000 metric tonnes of cotton annually, despite having an installed processing capacity of about 650,000 metric tonnes. He noted that the country once had over 52 garment companies, but fewer than 20 are currently operational — and even those are running below capacity.
“These factors have led to the closure of textile companies in Kaduna, Lagos, Ibadan, Kano and other parts of the country,” he said.
Achimugu explained that the collapse of textile mills — the primary consumers of locally grown cotton — has had a ripple effect on farmers, who have been forced to scale down production or seek alternative livelihoods.
On reviving the sector, the NACOTAN president called for deliberate government intervention, stronger trade protection policies and enforcement of existing directives promoting local content, including Executive Order 003 and the Nigeria First policy.
He stressed that the CTG sector should be treated as a national asset due to its job creation and wealth generation potential. “It’s a critical sector; It’s a sector where you create jobs and wealth. We should not continue to import what we can produce locally”, he said.
Achimugu expressed optimism about the recently approved Cotton, Textile and Garment Development Board, endorsed by the National Economic Council in April 2025. He said the Board, which is expected to be private sector–driven, would help coordinate stakeholders and bridge the disconnect between industry players and government agencies. “We appreciate what the government has done so far, but this time, let it be private sector–driven. We wear the shoe and know where it pinches”, he stated.
He further described the industry as highly capital-intensive, noting that improving competitiveness would require modern machinery, improved inputs for farmers, enhanced security and lower energy costs.
While acknowledging the need for support, Achimugu clarified that the focus should be on making the sector competitive rather than relying on subsidies or grants, and urged both federal and state governments to “take a bet” on industry players and support a structured revival strategy capable of repositioning the CTG sector as a major contributor to Nigeria’s economy.
