$4bn cotton imported annually into Nigeria – Arewa Cotton CEO

Anibe Achimugu is Managing Director of Arewa Cotton and Allied Products Limited and also the president, National Cotton Association of Nigeria, (NACOTAN). In an interview with Trust TV, he highlights the challenges faced by the sector and what can be done to boost capacity.   Can you highlight the major challenges faced by players in […]

Anibe Achimugu is Managing Director of Arewa Cotton and Allied Products Limited and also the president, National Cotton Association of Nigeria, (NACOTAN). In an interview with Trust TV, he highlights the challenges faced by the sector and what can be done to boost capacity.

 

Can you highlight the major challenges faced by players in the textile industry?

To be honest with you, I think beyond the fact that the textile mills were closing down or have closed down due to obvious smuggling, which is a major concern or factor.

Also, the fact that the cost of production is very high, it means that farmers had to now step down on their production volumes and they needed now to look for alternatives, to be able to at least keep themselves and their families going. So if the textile mills that are the consumers, and the main consumers are no longer producing, then obviously the farmers will have to cut down on their production.

Also, even the immediate users of the seed cotton that is produced by the farmers, they also have their own challenges. Another issue we’re talking about is power. It’s a major factor in the textile and garment subsector as well. So those are the things that caused our decline, I think.

We were producing about 300,000 metric tonnes, which is reasonable. But when you think about the installed capacity of the garment processors, I think it is about 650,000 metric tonnes. We had over 52 garment companies at that time, way back then. Today, I don’t think that they are up to 20. And even the 20 that we’re talking about are not obviously enjoying full capacity utilisation.

These factors have led to the closure of some of our textile companies in Nigeria, especially in Kaduna, Lagos, Ibarra, Kano, and some other places.

 

How do you think we can revive the industry?

Looking at its impact, I will say government’s intervention is important. Policy is very important. Trade protection is very important. We must be able to recognise the importance of the CTG sector in the first instance.

It’s a critical sector. It’s a sector that you create wealth with. It’s a sector that you create jobs.

You know, it’s a sector that, in fact, to me, I always refer to it as a national asset, or it should be classified as a national asset, because we’re going to continue to import, what we potentially can produce ourselves. I mean, if you look at some school of thought, they believe that upwards of $4 billion is imported into Nigeria on a yearly basis.

Of course, that’s the official channels and the unofficial channels, considering smuggling and so on and so forth.

So I think there needs to be a deliberate intervention through the government. I’m not necessarily saying that governments will run the CTG sector as a business, no, but to empower. And that is why, as I speak to you, I believe that the main strategy that the government can utilise is the recently approved Cotton Textile and Garment Development Board that the National Economic Council approved in April of last year, 2025.

I believe that what is going on is that there’s a disconnect between industry players and the public sector. You have agencies that, yes, they recognise the power of the CTG sector, but we’re all doing what we’re doing separately, not on one table, not on one platform. And I think that the board would have that capacity to coordinate and to ensure that every subsector of the CTG sector is supported. So I think that we need to look at it that way.

We also need to support the Made in Nigeria, so produced in Nigeria, and worn in Nigeria and there’s the Executive Order 003, which needs to be enforced.

So the policies are there, and the policies are good. I look at the Nigeria First policy, for instance, Nigeria First policy, if we can tap into all this, bring it under one umbrella, and then the CTG sector will be able to run with it.

We’re talking of military uniforms, we’re talking about schools, and so on and so forth. And I think that the immediate market, if you look at, say, more than 200 million Nigerians, imagine that we begin to say, ‘look, you know what, let’s try in the first place to clothe our own people, even before we start talking about exports. And then the policy support.

If you talk about the textile mills, for instance, we cannot just leave it to commercial considerations in terms of, for instance, power. It’s a major production factor, but we must be able to somehow reduce the cost. If not, you will not be competitive.

 

Beyond government interventions, where do you think the private sector should be in this regard?

Okay, for instance, the Cotton and Textile Government Development Board that we asked the government to approve for its establishment will be private sector driven.

That’s the difference. Now, I want to thank the government because the government has done a lot in the past, presently because they’ve actually recognised the importance of the sector, the critical importance of the sector. But we have said that, let’s do it private sector way this time.

So we appreciate what government has done, but we wear the shoe and we know where it pinches.

But if we are supported, and it is private sector driven, we will drive it with commercial considerations.

 

How capital intensive is it to run this sector?

Oh yes, it’s certainly capital intensive. We’re talking about now, competing.

So we have to improve our competitiveness. And to do that, you can’t do it with the old machinery and equipment that we have currently. And you know, these things are not off the shelf, they are to order.

So, I mean, there’s a cost implication. For instance, if you want to go back to, you know, cutting production, which is the bedrock of the raw material requirements for the entire value chain, it’s not something that you can do also overnight, but it’s the low hanging fruit actually. You have to now organise the farmers or reorganise the farmers, you have to provide security.

So we must be able to support the farmer, the local farmer, we must be able to give them the inputs they require, not just the inputs, but the quality of inputs and the quantity.

So it’s going to be capital intensive, yes, but I believe that a deliberate intervention using the Cutting Textile and Garment Development Board will yield the results. So we used to be 180.

Well, I’m thinking, for instance, if you look at it, if you are talking of subsidy, for instance, I don’t think that’s the right word, neither is grant the right word, but I’m saying competitive, to be competitive.

 

What is your message to the government at this point?

Well, I think I want to simply say to the government that take a bet on us. Let’s not continue the haphazard way. State governments are very important and we’re thinking that this board, that we’re expecting to be established very soon, will also have to engage more with the state governments.

 

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