The federal government has designated the Cotton, Textile, and Garment (CTG) sector as the flagship pilot for its new industrial value-chain transformation strategy. This is in a bid to bridge the gap between policy and production. The global value of the textile industry is $1.39trn in 2025 and is projected to reach $2trn soon, according to the United Nations Industrial Development Organisation (UNIDO).
This comes as the government moves to operationalise the Nigeria Industrial Policy, which aims to improve productivity, scale industrial clusters and processing hubs, strengthen local raw material utilisation, and coordinate value-chain development across priority sectors.
According to the Ministry of Industry, Trade and Investment’s 2026 Outlook obtained by BusinessDay, the CTG sector will serve as a flagship value-chain transformation pilot to support the transition from fragmented interventions to a coordinated, demand-anchored industrial ecosystem.
BusinessDay’s checks show that despite being a top contributor to the manufacturing sector with high potential to create employment for both skilled and unskilled labour, the textile industry continues to rely on imports, which surged by 47 percent in one year.
Data from the National Bureau of Statistics (NBS) trade report shows that Nigeria imported textiles and textile articles worth N814.3 billion in the first nine months of 2025, a significant increase from the N552.3 billion recorded in the corresponding period of 2024.
To reverse this trend, the Outlook indicates plans to strengthen domestic industrial capacity and productivity for the supply of export-ready goods and services.
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It added that in 2026, the Ministry will advance the implementation of the Nigeria Industrial Policy through industrial clusters, Special Economic Zones (SEZs), Digital Free Zones, and coordinated support for manufacturing and processing hubs.
“Priority will be placed on value addition in agro-processing, solid minerals beneficiation, light manufacturing, textiles, and pharmaceuticals, alongside stronger local raw material sourcing and standards compliance.
“Sub-national collaboration will support productivity gains, MSME upgrading, and structured value-chain development across priority sectors in line with national industrial targets,” the document stated.
The report further noted that the Ministry’s focus for 2026 is on sustaining reform momentum while tightening execution, with emphasis on disciplined implementation and closer integration of trade, investment, and industrial policy to translate consolidation into growth, non-oil exports, and jobs.
“The Ministry’s priorities for the year are organised around four reinforcing pillars. Central to this execution agenda is the operationalisation of the Nigeria Industrial Policy,” it stated.
Beyond sector pilots, the federal government will also prioritise expanded access to long-term industrial financing, improved performance oversight of strategic industrial assets, and stronger digital monitoring mechanisms to enhance execution across the broader industrial landscape.
The government also plans to deepen trade facilitation as a primary demand-side growth lever by activating new and existing bilateral and regional trade corridors.
The Outlook indicates that priority will be placed on strengthening trade flows with traditional partners such as the United States, the United Kingdom, and the European Union, while expanding engagement with emerging markets in the Gulf, Latin America, the Caribbean, and Asia—including the United Arab Emirates, Brazil, and Japan.
It added that the full implementation of African Continental Free Trade Area (AfCFTA) protocols will remain central to scaling intra-African trade.
