The Minister of Industry, Trade and Investment, Okechukwu Enelamah has announced the signing of a Memorandum of Understanding (MoU) on first-ever cotton value chain industry, worth $2 billion.
The agreement which was signed with Shandong Ruyi International Fashion Industry, according to Enelamah, will involve cotton growing to ginning, spinning, textile manufacture and garment in Katsina, Kano, Abia, and Lagos States.
Enelamah disclosed that the investments will comprise aggregation and off-take of cotton from farmers for ginning, spinning and weaving and manufacturing at least 300 million metres of African print.
The agreement will implement the production of cotton and denim garments for export and local consumption by Ruyi Group in Abia, Lagos and Kano states.
How Nigeria can benefit from the deal
The cotton that will be produced will provide raw materials for the Nigeria-owned garment factory.
The farmers that will be employed as a result of the deal will earn extra income which will be spent within the country, therefore, boosting the local economy. The Nigerian Government also benefits from enhanced tax revenue from individuals and contractors that will be employed.
The textile and garment industry in Nigeria has not been functional, with this deal in place, it will revitalise the industry and retain earnings. It is also pertinent to note that the textile and garment industry stands out as a potential growth area of Nigeria’s economy and it is in line with the President Buhari administration’s plans of diversifying the economy.