Nigeria's $4 Billion Cotton Import Crisis Revealed

The CEO of Arewa Cotton disclosed that Nigeria imports approximately $4 billion worth of cotton each year, a figure that includes both official and unofficial channels, with smuggling being a significant concern. The high cost of production has led to a decline in local textile mills, with many closing down, particularly in regions like Kaduna, Lagos, Ibarra, and Kano.

The current production capacity of garment processors is around 650,000 metric tons, but only about 20 companies are operational, down from 52. The CEO emphasized the need for government intervention in import policies to protect the cotton, textile, and garment sector, which is crucial for job creation and economic growth.

The establishment of the Cotton, Textile, and Garment Development Board, approved by the National Economic Council in April 2022, is seen as a step towards reconnecting industry players with public sector agencies. The CEO called for a focus on local production to reduce reliance on imports and improve competitiveness in the sector.