Government’s Bold Plan to Revitalise Nigeria’s Textile Industry
The Nigerian government has unveiled a comprehensive strategy aimed at modernising 50 per cent of the country’s operational textile capacity within five years. This initiative is part of a broader revitalisation agenda designed to address the growing challenges facing the sector, including rising textile imports and weak local production.
According to a December 2025 document titled “Annex I: Recommendations for the Revitalisation of the CTG Sector,” the plan outlines actionable steps across five strategic areas:
- Policy Reforms
- Infrastructure and Energy Solutions
- Investment Incentives
- Skills Development
- Measures to Curb Smuggling and Promote Local Patronage
The document was authored by the Cotton, Textile and Garment Division of the Industrial Development Department under the Federal Ministry of Industry, Trade and Investment.
Key Components of the Revitalisation Agenda
One of the central elements of the plan is the establishment of a Textile Modernisation Fund worth approximately N500bn. This fund will be administered by the Bank of Industry and will provide long-term loans with a minimum two-year moratorium and single-digit interest rates. The objective is to support the procurement of modern machinery and equipment, aiming to modernise 50 per cent of Nigeria’s textile capacity within five years.
In addition to financial incentives, the government is considering tax holidays or subsidies for textile mills that invest in renewable energy solutions such as solar, biomass, or waste-to-energy systems. A target has been set for 25 per cent of textile mills to transition to hybrid or renewable energy sources within three years.
On the tax front, the proposal includes corporate tax holidays for new textile investments exceeding a defined capital threshold, such as $10m. These tax breaks are expected to attract foreign direct investment (FDI) into the sector, with a goal of achieving a 30 per cent increase within three years.
Another significant measure is the 100 per cent import duty and VAT waiver on industrial machinery, spare parts, and specialised chemicals not produced locally. This is projected to reduce initial capital expenditure for new textile mills by 20 to 25 per cent.
Skills Development and Training
The government also proposed the establishment of a National Textile Training Institute, focusing on modern competencies such as digital technology, industrial sewing, dyeing chemistry, and equipment maintenance. The institute aims to train 2,000 certified skilled textile workers and technicians annually after the first two years.
Hamma Kwajaffa, Director-General of the Nigerian Textile Manufacturers Association, welcomed the plans, calling them a positive shift from previous government responses. He noted that the proposals could significantly reverse the trend of rising textile imports if implemented effectively.
Kwajaffa also highlighted the importance of communication between the government and industry operators. He mentioned that officials sent him the document after reading his earlier interview, indicating a potential communication gap.
Financing and Sustainability
The proposed Textile Modernisation Fund is seen as more sustainable than past interventions, such as the N100bn textile fund introduced in 2009 through the Debt Management Office. Kwajaffa pointed out that the new fund, administered by the Bank of Industry, would offer a revolving loan structure, ensuring continuity and dependability.
He also endorsed the plan for a national textile institute, describing it as “excellent” and “the kind of bankable institute we require.” According to Kwajaffa, the institute would directly benefit the industry through staff training and skills upgrading.
Challenges and Criticisms
Despite these promising initiatives, industry operators have raised concerns about policy failures, weak execution of credit initiatives, poor access to affordable finance, and structural challenges such as insecurity, weak cotton farming, and limited local polyester production.
Kwajaffa had previously criticised policy incoherence within the government, noting that conflicting positions among top officials had stalled action. He mentioned that disagreements over whether to establish a board or a council to drive textile reforms had prevented progress.
Conclusion
While the government’s revitalisation agenda presents a clear roadmap for transforming the textile sector, its success will depend on effective implementation, sustained communication with stakeholders, and addressing the underlying challenges that have hindered local production. With the right policies and support, Nigeria’s textile industry could see a much-needed resurgence.