Nigeria’s exporters are looking to tap into the global cotton shortfall by supplying the crop to key demand hubs such as Bangladesh, Vietnam, India and China.
The United States Department of Agriculture (USDA) recently cut its 2025/26 global cotton production forecast to 25.47 million tons, down 0.70 percent from May and 2.45 percent year-over-year. Major producers are also seeing sharp declines with output dropping by six percent in China, 5.45 percent in Pakistan, and 4.08 percent in India.
China, the world’s top cotton producer, is also grappling with its weakest factory output in six months, slipping from 6.1 percent to 5.8 percent, according to its National Bureau of Statistics (NBS).
China currently supplies around 88 percent of Nigeria’s cotton imports, but the situation is seen as a critical moment for Nigeria to grow more cotton and ramp up supplies to earn foreign exchange.
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“This is an immense opportunity for investors,” said Ado Sule, director of administration at the National Cotton Association of Nigeria (NACOTAN). “The majority of our cotton is imported from China. With their factory slowdown and reduced output, it’s time to look inwardly and revive our sector,” he stated.
Adding to the changing global cotton dynamics, Benin—Africa’s largest cotton producer—has imposed an export ban on raw cotton in a bid to stimulate domestic processing and job creation.
The decision, announced by Patrice Talon, president of Benin Republic, on May 10, 2025, is intended to strengthen the country’s value-added cotton industry, but Nigerian stakeholders see it as an opening to reclaim lost ground.
“The export ban in Benin is an opportunity to revive Nigeria’s cotton industry, as our production capacity far outweighs theirs. But that can only happen if we put the right structures in place,” said Kamilu Munir, national secretary of the Cotton Producers and Merchants Association of Nigeria (COPMAN).
“Cotton used to be our glory crop before oil was discovered. It employed millions and contributed significantly to our economy,” he noted.
Munir called on investors from both public and private sectors to act swiftly. “We’re urging all stakeholders to seize this opportunity and reposition Nigeria’s cotton industry as a leading player in Africa and globally,” he stated.
Industry analysts note that Nigeria’s cotton sector has struggled for decades due to inconsistent policy, low investment, and infrastructure gaps. But with the current shifts in the global supply chain, the consensus is that Nigeria now holds a unique chance to rebuild its cotton value chain—from farming to processing and exports.
Why the call for investors?
Nigeria’s vast arable land, favorable climate, and potential for cotton cultivation across 32 states—including Sokoto, Jigawa, Katsina, and Ogun—position it strongly for industry growth.
“Cotton can be grown across many states of the country. We have the fertile lands, and the market is huge with strong demand across Africa, Europe, and the U.S.,” said Munir.
He highlighted cotton’s versatility, noting that “it yields high-value products like fiber, oil, seed meal, cotton stalk, animal feed, and cotton cake.”
Munir also pointed to the sector’s profitable value chain. “From farming to processing, logistics, exports, and input supplies, each stage offers significant returns,” he said.
He also urged increased investment, pointing to a recent partnership. “Arise’s (a private cotton company) collaboration with the federal government to build Africa’s largest cotton processing plant in Ogun State should inspire more investors. It’s a game-changer for job creation and economic growth,” he further said.
Potential
The global cotton market stands at $44.30 billion in 2025 and is forecast to reach $51.60 billion by 2030, according to Modor Intelligence.
Nigeria produced 100,000 metric tons (MT) of cotton in 2023/24 season, but output this year is estimated to be 15,000 MT.
Nigeria exported cotton worth $18.18 million during 2023, according to the United Nations COMTRADE.
India, China, the U.S., and Brazil lead global production, while Benin, Côte d’Ivoire, Burkina Faso, and Cameroon top Africa’s output, according to Statista’s 2025 report.
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Challenges of cotton
Nigeria’s cotton industry continues to face significant challenges that hinder its revival, including poor-quality seedlings, widespread smuggling, weak policy enforcement, insecurity in key farming regions, and a lack of mechanisation, according to industry experts.
“Poor seedlings have been a major challenge in the sector. However, we’re beginning to overcome this by collaborating with cotton farmers in the Benin Republic to access higher-quality seedlings,” Munir stated.
He also pointed to the sector’s overreliance on manual labour as a major bottleneck. “About 90 percent of cotton cultivation in Nigeria relies on manual labor—only one percent is mechanised,” he noted. “We need significant investment in mechanised farming to boost productivity,” he added.
Sule, earlier quoted, said insurgency and banditry in major cotton-producing regions have made it unsafe for farmers to expand their operations.
“At the same time, the rampant smuggling of foreign textiles and illegal imports continues to undermine local production, flooding the market with cheaper alternatives and discouraging investment,” he added.
Way forward
Expanding cultivated land, enhancing quality, enforcing import regulations, and investing in mechanisation and infrastructure are critical steps needed to revive and grow Nigeria’s cotton sector, industry experts say.
“We need to expand cotton cultivation areas across the 32 states where the crop can thrive to scale up production significantly,” Sule noted.
“Improving quality through local processing will position Nigeria more competitively in the global market,” he added.
Munir said, “We need improved mechanisation to ease the production process. There is also a strong need for a regulatory framework that prioritises local products and reduces market competition from imports,” he added.
