FG mulls 50% textile sector improve

The Federal Authorities is contemplating modernising 50 per cent of Nigeria’s operational textile capability with state-of-the-art tools inside 5 years as a part of a broader revitalisation agenda. This follows a current report by The PidomNigeria that textile imports rose to N814.27bn within the first 9 months of 2025, regardless of the federal government’s guarantees to show the sector round.

This improve is a part of the federal government’s inside plans to introduce tax breaks, set up a nationwide textile coaching institute, and supply single-digit rate of interest loans to revive the textile trade.

The proposals, contained in a December 2025 doc obtained by The PidomNigeria, confirmed that the federal government is contemplating modernising 50 per cent of Nigeria’s operational textile capability with state-of-the-art tools inside 5 years as a part of a broader revitalisation agenda.

The doc, titled “Annex I: Suggestions for the Revitalisation of the CTG Sector,” was authored by the Cotton, Textile and Garment Division of the Industrial Improvement Division, Federal Ministry of Trade, Commerce and Funding.

It detailed suggestions, actionable plans, and key efficiency indicators throughout 5 strategic areas, together with coverage reforms, infrastructure and power options, funding incentives, abilities growth, and measures to curb smuggling and promote native patronage.

Below a proposed Textile Modernisation Fund, the federal government plans to determine a specialised fund of about N500bn to be administered by the Bank of Industry to offer long-term loans of seven to 10 years, with a minimal two-year moratorium, at single-digit rates of interest.

The doc acknowledged that the loans would help the “procurement of modernised or state-of-the-art equipment and components,” with a key efficiency goal of making certain that “50 per cent of operational textile capability is modernised with state-of-the-art tools inside 5 years.”

On power prices, the federal government stated it’s contemplating tax holidays or subsidies for textile mills that spend money on renewable power options corresponding to photo voltaic, biomass, or waste-to-energy methods. It set a goal for “25 per cent of textile mills to transition to hybrid or renewable power sources inside three years.”

The federal government additionally proposed tax incentives to draw contemporary capital into the sector. It stated it’s contemplating 5 to seven years of company tax holidays for brand spanking new textile investments above an outlined capital threshold, corresponding to $10m, particularly for corporations that supply a minimum of 70 per cent of their uncooked supplies domestically. The plan goals to drive a “30 per cent improve in overseas direct funding into the textile sector inside three years.”

The PidomNigeria understands that not one of the plans are concrete but. As well as, the doc really helpful a 100 per cent import obligation and VAT waiver on industrial equipment, spare components, and specialised chemical compounds not produced domestically. It was projected that the measure would cut back preliminary capital expenditure for brand spanking new textile mills by 20 to 25 per cent.

On abilities growth, the federal government proposed revamping or establishing a devoted Nationwide Textile Coaching Institute to concentrate on fashionable competencies corresponding to digital know-how, industrial stitching, dyeing chemistry, and tools upkeep.

The plan targets the coaching of “2,000 licensed expert textile employees and technicians yearly after the primary two years.” In a phone interview with The PidomNigeria, the Director-Basic of the Nigerian Textile Producers Affiliation, Hamma Kwajaffa, welcomed the plans as a constructive shift from earlier authorities responses.

“The actionable plans underneath the advice are glorious,” he stated. “Had we recognized that issues have been taking place like this, I’d have simply instructed you that one thing was happening, however as a result of it was not placed on paper, these plans couldn’t rapidly scale back the textile import surge.”

He added that when accredited and carried out, the measures might considerably reverse the rising import development. “A lot of the issues we face, significantly the rise in imports, will drastically scale back when these items are accredited and put in motion,” he stated.

Kwajaffa confirmed that officers despatched him the doc after studying his earlier interview with The PidomNigeria, saying it revealed a communication hole between authorities and trade operators.

“They despatched me the paperwork on WhatsApp. They learn the interview and felt there had been a communication hole,” he stated. “They stated there’s work in progress and that even the Workplace of the Vice President is anxious, which is why this paper has been developed.”

On financing, Kwajaffa stated the proposed Textile Modernisation Fund could be extra sustainable than previous interventions, citing the N100bn textile fund launched in 2009 via the Debt Administration Workplace.

The Textile Producers’ chief defined: “As a result of it was a DMO mortgage, it couldn’t be a revolving mortgage. There was no continuity. If we now have a authorities fund administered by the Bank of Industry at single-digit rates of interest, will probably be reliable, steady, and revolving.”

He additionally endorsed the plan for a nationwide textile institute, describing it as “glorious” and “the form of bankable institute we require.” “That is purely in idea, and it’s a welcome growth as a result of it can stream straight again to the trade via workers coaching and abilities upgrading,” Kwajaffa stated.

He urged the federal government to maintain communication with stakeholders to make sure well timed implementation. “There needs to be continuity of communication so that when questions come from the media or outsiders, everybody is aware of these items are doable,” he stated.

The federal government’s response adopted earlier stories by The PidomNigeria that Nigeria’s textile imports climbed to N814.27bn between January and September 2025, underscoring the weak spot of native manufacturing.

Information from the Nationwide Bureau of Statistics confirmed that textile and textile article imports stood at N228.83bn within the first quarter of 2025, N337.12bn within the second quarter, and N248.32bn within the third quarter.

Trade operators instructed The PidomNigeria that the surge mirrored coverage failures, weak execution of credit score initiatives, poor entry to reasonably priced finance, abandonment of promised institutional reforms, and structural challenges corresponding to insecurity, weak cotton farming, and restricted native polyester manufacturing.

Kwajaffa had earlier criticised coverage incoherence inside the authorities, lamenting that conflicting positions amongst prime officers stalled motion. He later clarified that the disagreement centred on whether or not to determine a board or a council to drive textile reforms, noting that neither choice had materialised.

“After I talked about within the interview that it appeared that the Vice President Kashim Shettima and the Minister of State for Trade, John Enoh, have been saying various things, I meant that the VP, via the Nationwide Financial Council, wished the institution of a board whereas the minister most popular the institution of a council, however neither has materialised, he stated.

“I additionally spoke in regards to the multiplicity of boards and parastatals, which the Orosanye panel might have contributed to the non-establishment of any company up to now.”