FG mulls 50 cloth sector upgrade
The Federal Government is considering modernising 50 per cent of Nigeria’s functional cloth capacity with state- of- the- art outfit within five times as part of a broader revitalisation docket. This follows a recent report by The PUNCH that cloth significances rose to N 814.27 bn in the first nine months of 2025, despite the government’s pledges to turn the sector around.
This upgrade is part of the government’s internal plans to introduce duty breaks, establish a public cloth training institute, and give single- number interest rate loans to revive the cloth assiduity.
The proffers, contained in a December 2025 document attained by The PUNCH, showed that the government is considering modernising 50 per cent of Nigeria’s functional cloth capacity with state- of- the- art outfit within five times as part of a broader revitalisation docket.
The document, named “ Addition I Recommendations for the Revitalisation of the CTG Sector, ” was penned by the Cotton, Textile and Garment Division of the Industrial Development Department, Federal Ministry of Industry, Trade and Investment.
It detailed recommendations, practicable plans, and crucial performance pointers across five strategic areas, including policy reforms, structure and energy results, investment impulses, chops development, and measures to check smuggling and promote original patronage.
Under a proposed Textile Modernisation Fund, the government plans to establish a specialised fund of about N500bn to be administered by the Bank of Industry to give long- term loans of seven to 10 times, with a minimal two- time doldrums, at single- number interest rates.
The document stated that the loans would support the “ procurement of modernised or state- of- the- art ministry and corridor, ” with a crucial performance target of icing that “ 50 per cent of functional cloth capacity is modernised with state- of- the- art outfit within five times. ”
On energy costs, the government said it’s considering duty leaves or subventions for cloth manufactories that invest in renewable energy results similar as solar, biomass, or waste- to- energy systems. It set a target for “ 25 per cent of cloth manufactories to transition to mongrel or renewable energy sources within three times. ”
The government also proposed duty impulses to attract fresh capital into the sector. It said it’s considering five to seven times of commercial duty leaves for new cloth investments above a defined capital threshold, similar as$ 10m, especially for enterprises that source at least 70 per cent of their raw accoutrements locally. The plan aims to drive a “ 30 per cent increase in foreign direct investment into the cloth sector within three times. ”
The PUNCH understands that none of the plans are concrete yet. In addition, the document recommended a 100 per cent import duty and Handbasket disclaimer on artificial ministry, spare corridor, and specialised chemicals not produced locally. It was projected that the measure would reduce original capital expenditure for new cloth manufactories by 20 to 25 per cent.
On chops development, the government proposed revamping or establishing a devoted National Textile Training Institute to concentrate on ultramodern capabilities similar as digital technology, artificial sewing, dyeing chemistry, and outfit conservation.
The plan targets the training of “ 2,000 pukka professed cloth workers and technicians annually after the first two times. ” In a telephone interview with The PUNCH, the Director- General of the Nigerian Textile Manufacturers Association, Hamma Kwajaffa, ate the plans as a positive shift from former government responses.
“ The practicable plans under the recommendation are excellent, ” he said. “ Had we known that effects were passing like this, I would have just told you that commodity was going on, but because it was n’t put on paper, these plans could n’t snappily reduce the cloth import swell. ”
He added that formerly approved and enforced, the measures could significantly reverse the rising import trend. “ utmost of the problems we’re facing, particularly the increase in significances, will drastically reduce when these effects are approved and put in action, ” he said.
Kwajaffa verified that officers transferred him the document after reading his earlier interview with The PUNCH, saying it revealed a communication gap between government and assiduity drivers.
“ They transferred me the documents on WhatsApp. They read the interview and felt there had been a communication gap, ” he said. “ They said there’s work in progress and that indeed the Office of the Vice President is concerned, which is why this paper has been developed. ”
On backing, Kwajaffa said the proposed Textile Modernisation Fund would be more sustainable than once interventions, citing the N100bn cloth fund introduced in 2009 through the Debt Management Office.
The Textile Manufacturers’ principal explained “ Because it was a DMO loan, it could n’t be a revolving loan. There was no continuity.However, it’ll be reliable, nonstop, If we now have a government fund administered by the Bank of Industry at single- number interest rates. ”
He also championed the plan for a public cloth institute, describing it as “ excellent ” and “ the kind of unfavorable institute we bear. ” “ This is purely in proposition, and it’s a welcome development because it’ll flow directly back to the assiduity through staff training and chops upgrading, ” Kwajaffa said.
He prompted the government to sustain communication with stakeholders to insure timely perpetration. “ There should be durability of communication so that formerly questions come from the media or outlanders, everyone knows these effects are realizable, ” he said.
The government’s response followed earlier reports by The PUNCH that Nigeria’s cloth significances climbed to N 814.27 bn between January and September 2025, emphasizing the weakness of original product.
ata from the National Bureau of Statistics showed that cloth and cloth composition significances stood at N 228.83 bn in the first quarter of 2025, N 337.12 bn in the alternate quarter, and N 248.32 bn in the third quarter.
Industry operators told The PUNCH that the surge reflected policy failures, weak execution of credit initiatives, poor access to affordable finance, abandonment of promised institutional reforms, and structural challenges such as insecurity, weak cotton farming, and limited local polyester production.
