FG Moves to Revive Moribund Cotton, Textile Industry

•To create 1.4m jobs annually 

•Stakeholders: Textile industry to revolutionise nation’s economy 

•Uzodimma foresees bright future for Nigeria’s cotton industry

Deji Elumoye in Abuja

The federal government in collaboration with the International Cotton Advisory Committee (ICAC), has commenced moves towards the resuscitation of Nigeria’s moribund cotton industry.

The target is to create over 1.4 million jobs annually in the cotton/textile sector, while the focus is to develop key components of the cotton value chain comprising farming, weaving, ginning and linking of cotton, all in line with the industrialisation drive of the President Bola Tinubu government.

This formed the highpoint of a meeting held yesterday, between Vice President Kashim Shettima and a delegation from the ICAC led by its Executive Director, Mr. Eric Trachtenberg, at the State House, Abuja.

Speaking after remarks from the ICAC delegation and other participants at the meeting, Shettima urged stakeholders to come up with a roadmap for the revitalisation of the cotton/textile sector in Nigeria, noting that, “it is time to work more and talk less”.

He assured that the Tinubu administration would make conscious efforts to ensure the country harnesses opportunities in the cotton value chain, including ensuring that Nigeria regains its ICAC membership.

The Vice President thanked the delegation for the visit, just as he acknowledged ICAC’s commitment to the development of the sector in Africa, noting that, “your diverse backgrounds in ICAC gives a nuance understanding of the complexities and opportunities in the cotton value chain.”

Addressing newsmen after the meeting, stakeholders, including governors, industry players and international partners, saw the plans bringing in more jobs, other economic advantages and an improved security.

Earlier in his remarks, Governor Babajide Sanwo-Olu of Lagos said his state was well positioned to harness opportunities in the cotton value chain, given that it hosts the factories, the market and is a critical component of the business ecosystem for the cotton sub-sector.

According to him, Lagos, as an integral part of the cotton value chain in Nigeria, would support every effort by stakeholders to revamp the sector to enable the state sustain its status as the largest fashion hub in the continent.

He expressed excitement at the possibility and opportunity for the resuscitation of the cotton and textile sector with a particular focus on job creation and economic transformation.

Sanwo-Olu pledged the State’s readiness to offtake cotton produced in other parts of the country for companies based within the area.

Sanwo-Olu stressed the need for Nigerians to patronise locally produced cotton, rather than relying on foreign imports.

He explained that many Nigerian garment manufacturers use polyester instead of cotton, due to its lower cost, he however highlighted the potential for Nigeria to produce high-grade cotton and reduce reliance on imports.

Sanwo-Olu emphasised the importance of examining the entire value chain and promoting local production and consumption, citing statistics that showed that the cotton industry once employed 15-18 million Nigerians, and expressed hope that reviving the industry could create millions of jobs in the next few years.

Also speaking, Governor Hope Uzodinma of Imo State said the meeting was the beginning of Nigeria’s quest to revamp the textile industry as part of the broad objective for industrialising the economy.

He said Imo State and the South-eastern region would key into the renewed effort to revamp the cotton/textile sector with the bid to create jobs for the people and for the overall industrialisation drive of the country.

According to him, “the opportunity created by the meeting is a new beginning in our quest for industrial recovery and creation of jobs for our teeming youths as well as an opportunity for a new partnership.”

Uzodinma of Imo State, expressed excitement about the potential of the cotton industry to revamp Nigeria’s economy and highlighted the opportunity for Nigeria to leverage international partnerships, expertise, and innovations to revamp its moribund cotton and textile industries.

Describing the ICAC as “the United Nations of cotton manufacturing”, Uzodinma emphasized the potential for job creation, employment, and engagement of young people, saying “this is a new opportunity that will create jobs, employment, and engage our young men and women roaming the streets”.

He recalled the past glory of Nigeria’s textile industry, citing the numerous textile industries in Lagos’ Isolo area and Kaduna’s reputation as a center for cotton production and textile mills.

The governor also stressed the need to stimulate the economy, create jobs, redefine Nigeria, and align with the new digital age for production and economic stimulation.

Earlier in his remarks, Trechtenberg said he was pleased with the level of interest and commitment shown by the leadership of the country and other stakeholders in reviving the industry in Nigeria.

Citing examples in China, India, Pakistan and other parts of the world, the ICAC Executive Director said the potentials in the cotton value chain was huge and has proven to be transformative.

He noted that cotton and textile offer competitive advantage, economic transformation and is a very competitive product that can be sold, both domestically and internationally, with probability to generate high quality jobs for now and in the future.

According to him, ICAC would support Nigeria’s cotton value chain revamp by offering expert advice in improving productivity and boosting the value chain and investment facilitation.

The Executive Director of the International Cotton Advisory Committee (ICAC),  Trachtenberg, expressed excitement about the prospects of Nigeria’s cotton industry, citing a “compelling historical moment” for growth and development.

He noted that Nigeria has low-cost labor, market access to the African Growth and Opportunity Act (AGOA) and Economic Partnership Agreements with the EU, and a talented workforce.

Trachtenberg emphasised that ICAC was committed to supporting Nigeria achieve its goals, creating quality jobs, generating foreign exchange, and re-imagining the global cotton economy.

Comptroller-General of the Nigerian Customs Service, Adewale Adeniyi, who was also part of the meeting, pledged to tackle smuggling and support the revival of the textile industry in Nigeria.

Adeniyi acknowledged that smuggling has hindered the industry’s development, but noted that other challenges like yield, power, and investments also need to be addressed.

According to him, the Nigerian Customs Service has been given a “marching order” to play its role in reviving the industry, focusing on policy formulation and implementation.

Adeniyi, identified policy as a major factor that “killed” the textile industry, but expressed commitment to revisiting and reforming policies to support the industry’s recovery.

He assured that the Customs Service would do everything possible to protect the industry, affirming its commitment to supporting Nigeria’s economic recovery through the textile sector.

Also, the Director-General of the Nigerian Textile Manufacturers Association, Hamma Kwajaffa, expressed optimism about the revival of the textile industry, predicting a surge in employment and a reduction in security problems.

Kwajaffa, said the association was happy to see the revival of the textile industry, which would lead to increased employment opportunities and a decrease in protests.

He emphasised that the focus was not on funding, but on ensuring a conducive environment for cotton production, citing the need for scientific expertise to achieve high yields.

Kwajaffa, noted that many textile mills have closed due to lack of raw materials and smuggling, but expressed confidence that the industry will bounce back, with about 70 textile mills expected to reopen, up from the current 24.