Ogun State has announced plans to partner with Arise Integrated Industrial Platform (IIP) to develop a $2 billion garment manufacturing hub, expected to be one of the largest in Africa.
The project, aimed at reviving Nigeria’s textile industry, will be located within a Special Agro-Processing Zone near the Gateway International Agro-Cargo Airport in Iperu.
The initiative was confirmed during a meeting in Abeokuta between Ogun State Governor Dapo Abiodun, executives from Arise IIP, and representatives of Afreximbank, which is providing financial and technical backing.
A joint implementation team is being set up to define project milestones, remove administrative bottlenecks, and prepare for groundbreaking in September 2025.
According to the project team, the integrated facility will be capable of producing 4.4 million garments daily and processing up to 1,000 tons of cotton per day. The development is projected to generate between 120,000 and 150,000 direct and indirect jobs, with additional employment opportunities expected across logistics, retail, and supporting services.
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Ogun State has earmarked 10 hectares of land for cotton cultivation, with further plans to engage local farmers through an outgrower scheme and guaranteed offtake agreements. The hub is intended to serve both domestic and regional markets, leveraging Nigeria’s population size and access to ECOWAS trade routes.
- Arise IIP, a pan-African industrial platform developer with ongoing projects in Gabon, Benin, and Togo, will lead the construction and management of the facility. Gagan Gupta, President of Arise IIP, said the project aims to build a fully integrated and competitive textile ecosystem within Nigeria.
- Industry executives present at the meeting, including Arvind Mathur, Arise’s Global Head of Textiles, and Raja Rajaburu, CEO of ATMS, emphasized the hub’s potential to position Nigeria as a regional textile leader. They cited improvements in local infrastructure and government support as enablers of the project’s success.
- The planned garment facility forms part of Ogun State’s broader industrialization strategy focused on manufacturing, agro-processing, and job creation. It also aligns with Nigeria’s national policy direction to reduce reliance on imports and encourage local value addition.
Nigeria’s textile sector was once among the country’s largest employers, but has faced decades of decline due to inadequate infrastructure, policy inconsistency, and competition from low-cost imports. The planned hub is expected to contribute to efforts to rebuild the industry by offering modern production capacity, stable power, and a structured supply chain.
Construction is scheduled to begin in the third quarter of 2025, with operations expected to commence by mid-2026.
What to know
This garment hub adds to a growing list of industrial projects in Ogun. In April 2024, Nigerian Breweries commissioned a $50 million brewery expansion in the state. The Sagamu Interchange Industrial Cluster continues to attract multinationals, including Nestlé and Coleman Wires, due to its proximity to Lagos and upgraded transport links.
Also, Aliko Dangote recently submitted paperwork to begin construction of a deep seaport in the Olokola Free Trade Zone in Ogun State, advancing plans to develop what is expected to be Nigeria’s largest and deepest port
The state government is simultaneously investing in infrastructure to support these developments.
The Gateway Agro-Cargo Airport, now 80% completed, will offer cargo and passenger services tailored to industrial users. Ogun also recently flagged off the 100km Ilishan-Remo to Abeokuta dual carriageway to improve logistics.
