Nigerian Cotton Untapped
The Nigerian textile and cotton industry is a highly neglected one due to the nation’s years of heavy dependence on crude oil for revenue.
After decades of giving a lot of attention to crude oil for revenue and foreign exchange, it is safe that there is a possibility that Nigeria might be tilting her attention in another direction — Cotton.
According to the Nigerian Investment Promotion Commission (NIPC), Nigeria still hasn’t tapped into the global $38 billion cotton industry despite having one of the largest textile industries in Africa and a 50% capacity to produce its own cotton.
Nigeria is said to produce up to 400,000MT of seed cotton and 110,000MT of lint yearly, arriving at a total of over 607,735 parcels of cotton lint that come from mostly small-scale farmers.
In 2020, Nigeria spent over N336 million on importing and exporting textile. It has been predicted that the global cotton market is going to be worth over $46.56 billion with a CAGR of 2.74 by 2027.
Cotton looks like a promising commodity that is going to rake in more attention from investors and traders within Nigeria and the world at large.