Nigerian cotton industry will soon receive USD $ 2 billion, to help the country create its first ever cotton value chain sector.
A Memorandum of Understanding has been signed between the Ministry of Industry, Trade and Investment, and Shandong Ruyi International Fashion Industry for the same.
Realizing the importance of the sector in creating jobs and reducing poverty, the government took the decision of supporting the sector through massive investment in infrastructure, that will further lead them in bringing down the cotton prices.
This fund will be used in every process of the cotton supply chain from cotton growing to ginning, spinning, textile manufacturing, and garment production. Also, new factories will be created in the areas such as Katsina, Kano, Abia, and Lagos states.
It also involves the manufacturing of at least 300 million meters of African print, that will fulfill about 20 per cent of West Africa’s demand. Along with this, the pact will also lead to the production of cotton and denim garment for the local consumption and exports.
“As a part of the efforts to promote the development of the sector, the Federal Government had decided to dedicate three out of six special economic zones to be created this year to textile and garment sector,” said Aisha Abubakar, The Minister of State for Industry, Trade and Investment, Nigeria
Statistics revealed that about 145 companies operating in the textile sectors have been shut down between 1980 and 2016, due to the harsh economic climate. This has further resulted in the reduced number of people being employed in the sector. Some of the challenges that the sector faced are smuggling of finished materials from foreign nations, inadequate power supply, lack of standardization, and the poor yield of cotton seeds.