Home Business News BUSINESS & ECONOMY Federal Government to unveil new CTG policy framework to revive textile industry

Federal Government to unveil new CTG policy framework to revive textile industry

Key points

  • The Federal Government will unveil a new strategic policy framework for Nigeria’s cotton, textile, and garment (CTG) sector between June and July 2026.
  • Nigeria’s cotton production declined from 200,000 metric tonnes in 2001 to approximately 10,000 metric tonnes in 2025.
  • A pilot initiative demonstrated that Nigerian cotton can be planted, processed, and transformed into finished garments within seven months.
  • The Bank of Agriculture (BOA) is setting up a dedicated fund to finance smallholder farmers and support the entire CTG value chain.
  • Local manufacturer Onchek Ltd. currently produces 8,000 shirts daily, proving that locally made garments can outperform imported alternatives in price and quality.

Main Story

The Federal Government says it will unveil a new strategic policy framework for Nigeria’s cotton, textile and garment (CTG) sector between June and July as part of efforts to revive the industry.

Minister of State for Industry, Sen. John Enoh, disclosed this on Thursday in Abuja at the CTG Value Chain Activation Pilot Milestone Event.

Enoh stated that the policy framework would provide broad guidelines for the sector and attract both local and foreign investments. The sector is considered critical to the Nigerian Industrial Policy inaugurated in February.

Despite a drastic decline in national cotton production over the last two decades, the minister noted that a recent pilot initiative proved cotton could be processed into finished garments locally within six to seven months.

The project utilized scientific approaches, including soil analysis and improved seed quality, to achieve high yields. To support the scale-up phase, the Bank of Agriculture is planning to finance smallholder farmers with technology-driven systems.

Private sector participants, such as Onchek Ltd., have already demonstrated vertical integration, producing 8,000 shirts daily and reducing pressure on foreign exchange.

The Issues

  • The massive 95 percent drop in cotton production since 2001 has left most of Nigeria’s textile mills moribund, requiring a complete rebuild of the primary production layer.
  • High costs of mechanization and a lack of irrigation systems limit the ability of local producers to compete with cheap, often smuggled, imported textiles.
  • Restoring investor confidence requires a stable policy environment that addresses longstanding challenges in power supply and seed technology.

What’s Being Said

  • “The next phase of this pilot is that we are going to come up with a broad guideline and policy framework that will govern this sector,” said Sen. John Enoh.
  • “What this means is that there is really no reason to want to buy anything foreign in terms of T-shirts,” Enoh added regarding the quality of local pilot products.
  • “We used the right seed, carried out soil analysis and planted based on the results we obtained. That is why we achieved good results,” stated Ms Olalade Adereye.
  • “Between June and July, we will not just validate a new strategic policy, we are going to unveil it,” the minister emphasized.

What’s Next

  • The Federal Ministry of Industry, Trade and Investment will conduct a final validation of the CTG strategic policy before its official unveiling in mid-2026.
  • The Bank of Agriculture will begin disbursing dedicated funds for improved seeds, fertilizers, and crop protection to cotton farmers.
  • Onchek Ltd. and other garment producers are expected to expand their workforces to meet rising local and international orders for Nigerian-made apparel.

Bottom Line

The Federal Government is moving beyond pilot testing to a full policy rollout intended to reverse a 25-year decline in cotton production and position Nigeria as a self-sufficient garment manufacturing hub.

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