Commodity Development Initiative: Cotton

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Overview

In 2019, the Central Bank of Nigeria embarked on the Cotton, Textile and Garment (CTG) sector resuscitation project to revive the industry and enhance its potential to contribute to Economic growth. This was also in line with the Federal Government's Executive order 003 with the mandate across government institutions to give preference to local contents for goods and services, particularly Made-in-Nigeria goods.

Objective of the Initiative

The main objectives of the CTG resuscitation project are as follows:

• Increase domestic cotton production annually;
• Increase the capacity utilization of ginneries and textile sector industries in Nigeria;
• Promote the attainment of self-sufficiency across the Cotton, Textile and Garment value chain;
• Create jobs and enhance the skills of Nigerians across the value chain;
• Facilitate easy access to funding across the CTG value chain; and
• Improve foreign reserve accretion by minimizing dumping of textile goods.

The key benefits of the intervention include improved cotton production at an average of over 200,000MT per annum, revamping and retooling of textile and garment companies, increasing the production and consumption of made in Nigeria fabrics and garments, increased employment (direct and indirect) and a significant reduction in smuggling and dumping of illegal textile goods into the country, conserving foreign exchange.